NBFC Credit Growth Hits 15.4%: Retail and Agri Loans Fuel Surge
RBI data reveals NBFC credit growth accelerated to 15.4% in September, driven by a massive surge in retail and agricultural lending.
Non-banking financial companies (NBFCs) have witnessed a significant acceleration in their lending activities, with NBFC credit growth climbing to 15.4 per cent year-on-year in September 2026. This marks a notable increase from the 13.3 per cent growth recorded during the same month in the previous year, according to the latest data released by the Reserve Bank of India (RBI).
Retail Lending: The Primary Engine of Growth
The surge in overall credit is largely attributed to a booming retail sector. Retail loans have emerged as the dominant driver of expansion, with growth accelerating to 21.9 per cent in September 2026, up from 16.8 per cent a year earlier.
This expansion was not limited to one area but was spread across several key financing segments. The RBI data highlights accelerated credit growth in the following categories:
- Housing Loans: Increased demand for home financing.
- Gold-Backed Loans: A rise in loans against gold jewellery.
- Vehicle Financing: Stronger lending for automotive purchases.
Agriculture Sees a Dramatic Recovery
Beyond retail, the agricultural sector witnessed a sharp turnaround. Credit to agriculture and allied activities recorded a significant jump, growing by 17.8 per cent year-on-year in September. This is a stark contrast to the modest 5.2 per cent growth seen in the corresponding period of the previous year, indicating a robust recovery in rural and agri-based financing.
Mixed Signals in Industrial and Services Sectors
While retail and agriculture soared, other sectors showed signs of moderation. Industrial credit growth slowed down, dipping to 7.4 per cent in September 2026, compared to 10.2 per cent in the previous year. Within this segment, infrastructure lending remained particularly subdued, reflecting a slower pace of expansion.
Similarly, the services sector experienced a cooldown. Credit growth in this area moderated to 17.3 per cent, down from the 23 per cent recorded in September 2025. However, the decline was not uniform across the board:
- Commercial Real Estate: Continued to show buoyant growth.
- Trade and Transport: Operators in these fields witnessed higher credit growth.
The Scope of the Data
The RBI clarified that this provisional sectoral credit data was gathered from a sample of major NBFCs and Housing Finance Companies (HFCs), specifically those in the Upper and Middle Layers. This sample accounts for approximately 87 per cent of the total credit reported in the 'Report on Trend and Progress of Banking in India 2024-25', with outstanding figures as of September 2025.