Non-banking financial companies in India lent at a much faster pace this September, powered by households borrowing against gold and buying consumer durables on credit. Fresh data from the Reserve Bank of India, released on Friday, shows NBFC credit grew 15.4 per cent year on year to Rs 61.7 lakh crore at the end of September 2026, up from 13.3 per cent growth a year earlier.
The numbers tell a clear story about where India is borrowing right now. Retail loans, the money NBFCs lend directly to individuals, did most of the heavy lifting, while lending to industry stayed sluggish. Gold loans, in particular, grew at a pace rarely seen before, jumping 66.1 per cent in a single year.
Retail lending leads the way
Retail loans rose 21.9 per cent year on year to Rs 26.84 lakh crore in September 2026, compared with Rs 22.01 lakh crore a year earlier. That is a sharp acceleration from the 16.8 per cent growth recorded in September 2025, and it means retail credit now makes up about 43.5 per cent of all NBFC lending, including housing finance companies.
Within retail, housing loans, vehicle loans and gold-backed loans all contributed. But two segments stood out for their sheer speed. Loans against gold jewellery surged 66.1 per cent to Rs 3.74 lakh crore, up from Rs 2.25 lakh crore in September 2025. Consumer durable financing, the loans that help households buy appliances and electronics, grew 54.4 per cent to Rs 77,896 crore, from Rs 50,411 crore a year ago.
The gold loan surge is not a one-off blip. Growth in this segment was already a strong 50.7 per cent in September 2025, and it has accelerated further since. With gold prices staying high, households appear to be unlocking value from jewellery they already own, rather than taking on fresh unsecured debt.
Industry and services lag behind
The picture looks very different on the corporate side. Credit to industry grew just 7.4 per cent year on year to Rs 22.69 lakh crore, a sign that factories and companies are still borrowing cautiously. Lending to the services sector slowed to 17.3 per cent, from 23 per cent a year earlier, while infrastructure lending growth eased to 5.9 per cent from 9.4 per cent.
One bright spot outside retail was agriculture. Credit to agriculture and allied activities grew 17.8 per cent in September, a strong recovery from the 5.2 per cent growth seen in the same month last year. Services credit stood at Rs 8.02 lakh crore at the end of September.
Overall, the pace of NBFC credit growth also eased slightly from August, when it had grown 15.8 per cent. The September figure of 15.4 per cent is still well ahead of last year, but the small month-on-month cooling suggests lenders are watching the economy closely.
What it means for borrowers
For households, the data carries two messages. First, credit is easily available for consumption, whether it is a gold loan, a new refrigerator on EMI, or a home loan. Second, the fastest-growing loans are secured ones, backed by gold or by the product being bought, which lenders see as safer than unsecured personal loans.
For the wider economy, the split matters. Retail demand is holding up well, which supports consumption, but weak industrial credit growth hints that private investment is yet to pick up meaningfully. If companies start borrowing more for expansion in the coming quarters, NBFC credit growth could broaden beyond retail.
The RBI data covers major NBFCs in the upper and middle layers along with housing finance companies, accounting for about 87 per cent of total NBFC credit. The figures are provisional and based on the sectoral deployment of credit reported by these lenders.
FAQs
How much did NBFC credit grow in September 2026?
NBFC credit grew 15.4 per cent year on year to Rs 61.7 lakh crore at the end of September 2026, up from 13.3 per cent growth a year earlier, according to RBI data released on Friday.
Which segment grew the fastest?
Loans against gold jewellery grew the fastest, rising 66.1 per cent to Rs 3.74 lakh crore. Consumer durable financing was next, up 54.4 per cent to Rs 77,896 crore.
How big is retail lending for NBFCs now?
Retail loans rose 21.9 per cent to Rs 26.84 lakh crore and now account for about 43.5 per cent of total NBFC credit, including housing finance companies.
Is industrial lending also growing?
Only slowly. Credit to industry grew 7.4 per cent to Rs 22.69 lakh crore, while services lending grew 17.3 per cent and infrastructure lending slowed to 5.9 per cent.
What data does the RBI release cover?
The data covers sectoral deployment of credit by major NBFCs in the upper and middle layers and housing finance companies, accounting for about 87 per cent of total NBFC credit.
The September numbers show an NBFC sector firmly in retail-lending mode. Whether industry joins the borrowing party in the months ahead will decide how broad this credit upswing really is.
