RBI Data Shows NBFC Credit Growth Rose to 15.4% in September 2026 Led by Retail and Agriculture

Non-banking financial companies recorded a year-on-year credit growth of 15.4 per cent in September 2026, driven largely by retail loans and agricultural credit. However, credit deployment to the industry and services sectors saw a decline during the same period.

Non-banking financial companies (NBFCs) registered a higher credit growth of 15.4 per cent year-on-year in September 2026 compared to 13.3 per cent a year ago, according to data released by the Reserve Bank of India (RBI) on the sectoral deployment of credit.

The expansion in credit was supported by robust growth in the agriculture and allied activities, as well as retail segments. However, the September 2026 growth figure was slightly lower than the 15.8 per cent recorded in the preceding month of August 2026.

Retail loan growth accelerated significantly, reaching 21.9 per cent year-on-year in September 2026, up from 16.8 per cent a year ago. Within the retail category, housing loans, loans against gold jewellery, and vehicle loans all witnessed accelerated credit growth.

Credit to agriculture and allied activities recorded a robust growth of 17.4 per cent year-on-year in August 2026, compared to 5.1 per cent in the previous year, per the central bank's sectoral deployment data for NBFCs.

In contrast, credit growth to the industry sector declined to 7.4 per cent year-on-year in September 2026, down from 10.2 per cent in September 2025. Within the industry segment, credit growth in infrastructure remained subdued.

Similarly, credit growth in the services sector dropped to 17.3 per cent year-on-year in September 2026, compared to 23.0 per cent a year ago. While commercial real estate marked a buoyant expansion, trade and transport operator segments also witnessed higher credit growth.

The sectoral credit data compiled by the Reserve Bank of India for NBFCs is based on a sample of NBFCs in the Upper and Middle Layers, alongside Housing Finance Companies (HFCs), collectively accounting for approximately 87 per cent of total credit.

"The latest RBI data highlights a clear shift in credit deployment by NBFCs, with retail and agricultural segments driving momentum while industrial and service sectors see a slowdown. For businesses and fintech startups operating in the lending space, this trend underscores the importance of aligning portfolios with robust consumer demand and rural credit expansion. Understanding these sectoral shifts is critical for managing capital allocation and risk effectively in the current macroeconomic environment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes