NBFCs account for nearly half of small loans while delinquencies stay low

Non-banking finance companies, or NBFCs, have provided nearly half of all new small loans worth less than Rs 2 lakh as of June 2026. This is a significant share, indicating the growing importance of NBFCs in the Indian credit market. The low delinquency rate among NBFCs suggests that they have managed to maintain good asset quality, which is a positive sign for the overall economy. This improved performance could lead to increased access to credit for more people, boosting economic growth.

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Non-banking finance companies accounted for nearly half of new-to-credit loans below Rs 2 lakh as of June 2026. Their retail delinquency rate remained lower than expected, indicating a stable outlook for the sector.

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