NBFC retail loans grew 21.4% YoY in July 2026, the fastest among major sectors, up from 13.7% a year ago, as per RBI data. Overall NBFC credit rose 14.9%, while lending to industry and services moderated, the central bank's report showed.
Retail loans given by non-banking financial companies (NBFCs) grew 21.4 per cent year-on-year in July 2026, the fastest growth among the major sectors, according to the latest data released by the Reserve Bank of India (RBI).
The data highlighted that retail credit growth was significantly higher than the 13.7 per cent recorded in July 2025, showing a strong rise in lending to retail borrowers. RBI stated, “Data on sectoral deployment of credit by non-banking financial companies (NBFCs) for the month of July 2026, collected from major NBFCs and housing finance companies (HFCs)….. Retail loans growth accelerated to 21.4 per cent (y-o-y) in July 2026 compared to 13.7 per cent a year ago”.
Sectoral Credit Deployment by NBFCs
Retail Loan Components
Within retail loans, the housing and loans against gold jewellery segments recorded faster credit growth in July. Vehicle loans, meanwhile, maintained steady growth.
Overall credit extended by NBFCs grew 14.9 per cent year-on-year in July 2026, compared with 10.6 per cent growth in July 2025.
Agriculture and Allied Activities
The RBI data showed that credit growth was strong in agriculture and allied activities as well. Lending to the sector grew 18.0 per cent year-on-year in July 2026, sharply higher than the 5.4 per cent growth recorded a year ago.
Industry and Services Sector Moderation
However, credit growth in the industry and services sectors moderated during the month. Credit to industry grew 7.4 per cent year-on-year in July 2026, compared with 9.3 per cent in July 2025.
The RBI said the moderation was primarily driven by subdued growth in infrastructure, which is a major component of the industry segment. Credit growth in the services sector also slowed to 15.2 per cent in July 2026 from 24.5 per cent a year ago. Within the services sector, credit to commercial real estate recorded buoyant expansion, while credit growth in trade and transport operators moderated.
The latest data shows that retail lending was a major driver of NBFC credit growth in July, with its 21.4 per cent expansion significantly exceeding the overall 14.9 per cent growth in NBFC credit. Agriculture and allied activities also recorded a substantial improvement in credit growth compared with a year ago. However, the pace of lending to industry and services was lower than the corresponding period last year. (ANI)
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