NBFC credit expands 15.8% in August, gold loans jump 69% while lagging banks
Non-bank financial firms recorded a 15.8% year-on-year rise in total credit to ₹60.64 trillion in August, with gold-backed loans soaring 69.1%, but their growth remained slower than that of commercial banks.
According to RBI data, non-bank financial companies increased their total loan portfolio by 15.8% year-on-year, reaching ₹60.64 trillion in August, compared with a 10% rise in the same month last year. Retail credit was the main engine, climbing 22% to ₹26.48 trillion, outpacing banks' 16.9% retail growth. Gold-backed loans surged 69.1% to ₹3.65 trillion, while housing loans grew 12.1% to ₹8.62 trillion.
Consumer-durable loans rose 56.4% and vehicle loans edged up 15.4%. Agricultural credit expanded 17.4%, and industry credit edged higher at 8.4%. Despite these gains, NBFCs' overall credit growth lagged behind commercial banks, which posted an 18.8% increase to ₹223.87 trillion. The RBI noted mixed trends across sectors, with strong expansion in commercial real estate but slower growth in trade and transport operator loans.
Why it matters
The data shows how NBFCs are fueling retail credit, especially gold loans, affecting borrowers and the broader Indian credit market.
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