The report, titled Bharat Nirman: NBFC Forming the Foundation of Credit Dispersion, found that 36% of credit-eligible consumers have accessed credit through an NBFC, while 46% of all credit-active consumers hold an NBFC loan.
Over the past decade, NBFCs’ credit-active consumer base has grown nearly sevenfold, about 2.5 times faster than the overall credit industry, the report said. Their share of retail loan originations rose from 33% to 43%. By value, however, their share stood at 30% in June 2026, reflecting a strong presence in smaller-ticket lending.
Small-ticket and rural reach
Loans of up to ₹2 lakh make up 82% of consumer credit industry origination volumes, and NBFCs contribute 47% of originations in this segment, against 17% for banks, according to the FIDC-TransUnion CIBIL report. Semi-urban and rural markets account for more than 58% of NBFC loans by volume, nearly on par with banks at 60%.
The report said the share of semi-urban and rural consumers in the NBFC base rose from 31% to 59% between June 2016 and June 2026. Women’s share rose from 18% to 27%, credit-experienced consumers from 35% to 49%, and younger consumers from 44% to 47%. Below-prime consumers make up 35% of NBFCs’ credit-active base.
First-time borrowers accounted for 16% of NBFC originations in June 2026, down from 28% in June 2016. The report said this shows NBFCs are increasingly serving borrowers who already have a credit history.
Quality and awareness
Between June 2019 and June 2026, the share of above-prime consumers in NBFC portfolios rose from 24% to 32%, while 90+ days balance-level delinquency fell from 2.7% to 1.1%, the report found. The share of NBFC consumers monitoring their credit rose from 3% in June 2018 to 48% in June 2026. Of previously delinquent accounts held by credit-monitoring consumers, 52% returned to regular repayment within 12 months, compared with 48% among similar non-monitoring consumers.
Among NBFC NTC consumers who entered formal credit in the six months ended June 2024 and still had a live loan in June 2026, 74% remained exclusively with NBFCs.Commercial lending
The report also pointed to growth in commercial lending. NBFCs’ share of credit-active commercial entities rose from 10% in June 2021 to 18% in June 2026, with NBFC-served entities growing 2.2 times against 1.2 times for the overall market.
Bhavesh Jain, MD and CEO of TransUnion CIBIL, said the sector’s reach now extends well beyond first-time borrowers. “The next phase will be about building deeper and longer relationships with customers as their credit needs evolve over time,” he said.
Raman Aggarwal, CEO of FIDC, said the sector is “far more deeply embedded in India’s credit system than it was a decade ago.” He added that the combination of reach, innovation and responsible lending will remain central to its economic contribution.
With first-time borrower growth beginning to moderate, the report said the opportunity lies in staying relevant through more stages of the credit journey.
Also read: Digital NBFCs’ personal loan book hits ₹1.54 lakh crore, up 28% in a year