NBFCs account for nearly half of small loans while delinquencies stay low
About 82% of loans originated in India were below Rs 2 lakh by number as of June 2026. NBFCs accounted for 47% of such originations, compared with 17% for banks and 36% for other lenders, the study showed.
Also Read: Central Bank of India posts 30% credit growth at Rs 3.81 lakh cr in Q2
Nearly 97% of loans originated in India were below Rs 10 lakh by number, highlighting the importance of small-ticket credit in the retail lending market.
Borrowers who began monitoring their credit while holding subprime scores recorded better cure rates than comparable borrowers who did not monitor their credit, said Bhavesh Jain, managing director and chief executive of TransUnion CIBIL.
The cure rate measures the proportion of delinquent accounts that became current within 12 months. The overall cure rate for credit-monitoring borrowers was 52%, compared with 48% for non-monitoring borrowers.
Also Read: RBI rate hike unlikely to trigger broad-based NBFC asset quality stress: ReportAbout 48% of NBFC credit-active customers monitored their credit profiles as of June 2026, up sharply from 3% in June 2018. Credit-active customers are those with at least one NBFC retail loan with an outstanding balance or reported limit.
Raman Aggarwal, chief executive of FIDC, attributed the improvement in asset quality to tighter underwriting, more current borrower information, increased credit awareness and greater repayment discipline.
“A good credit record determines their ability to obtain future loans,” Aggarwal said.
The number of credit-active NBFC customers grew nearly sevenfold between June 2016 and June 2026, while their outstanding balances increased more than fivefold. Growth in the NBFC customer base was about 2.5 times faster than that of the overall credit industry, the report said.
About 11 crore borrowers had active credit relationships with NBFCs as of June 2026. Nearly 36% of credit-eligible consumers had accessed credit through an NBFC at least once, while 46% of all credit-active consumers held an NBFC loan.
