NBFC credit growth rises to 14.4% in June 2026, led by retail and agriculture

India’s non-banking financial companies (NBFCs) continued to expand credit steadily in June 2026, with year-on-year growth rising to **14.4%**, up from **11.1%** a year earlier, as per the Reserve Bank of India’s latest sectoral deployment update.

The RBI release, based on a sample of major NBFCs in the Upper and Middle Layers and housing finance companies (HFCs), provides a timely view of how credit is flowing across key parts of the economy. The sample covers about **87% of total credit** (with reference to RBI’s *Report on Trend and Progress of Banking in India 2024-25*, outstanding as on September 2025). The central bank also notes the numbers are **provisional**, as reported on the last day of the month.

Broad-based momentum, with rural and household demand standing out A notable bright spot in June 2026 was lending to **agriculture and allied activities**, which recorded **17.9%** year-on-year growth, sharply higher than **5.1%** in June 2025. This pickup suggests improving credit support for farm-linked activities and allied segments, which often includes areas such as agri-services and rural supply chains.

At the same time, NBFCs saw a strong acceleration in **retail loans**, which grew **20.3%** year-on-year in June 2026 compared with **14.3%** a year ago. Within retail lending, the RBI highlighted robust growth in **housing**, **vehicle**, and **loans against gold jewellery**—segments that are closely tied to consumer confidence, mobility needs, and credit access for households and small businesses.

Taken together, the stronger performance in agriculture-linked lending and retail credit indicates an encouraging tilt towards demand-driven financing—supporting both rural and urban consumption, and helping households smooth expenses or invest in assets.

Industry and services: moderation with pockets of strength Credit to **industry** grew **6.7%** year-on-year in June 2026, lower than **10.3%** in June 2025. The RBI attributed the moderation primarily to **subdued growth in infrastructure**, which is a major component of industrial credit within NBFC portfolios.

While a slower pace in infrastructure-linked lending can reflect project timelines, risk assessments, or funding mix changes, it also underscores the importance of steady, long-tenor capital formation through a combination of banks, NBFCs, bond markets, and specialised institutions.

In the **services** sector, credit growth moderated to **17.6%** year-on-year in June 2026, compared with **22.4%** a year earlier. The RBI noted a mixed picture: credit in **commercial real estate** showed buoyant expansion, while growth in **trade** and **transport operators** moderated.

This divergence is worth watching because services credit often tracks business conditions for MSMEs, logistics players, and trading businesses. Even with moderation, the growth rate remains elevated, indicating that NBFCs continue to play a meaningful role in funding service-sector activity.

What the June 2026 data suggests for India’s credit landscape The June 2026 snapshot points to a **rebalancing** rather than a pullback: overall NBFC credit growth has strengthened, with clear momentum in retail and agriculture-linked lending, even as some segments like industry (especially infrastructure) and parts of services have cooled from last year’s pace.

For borrowers, stronger growth in retail and select service segments may translate into improved availability of credit products—particularly in housing, vehicles, and gold-backed loans, where NBFCs have built specialised distribution and underwriting capabilities.

For policymakers and market participants, the data provides a constructive signal: credit expansion is continuing, and sectoral shifts can help diversify risk across portfolios, provided underwriting discipline remains strong.

**Why it matters:** A steady rise in NBFC credit growth, especially in retail and agriculture, can support consumption, rural livelihoods, and last-mile financing—strengthening India’s broader growth momentum while highlighting where additional long-term funding may be needed.