RBI’s first monthly NBFC credit data shows 14.2% growth in May 2026, led by retail lending

Gold loans were the standout performer in NBFC retail lending, driven by strong demand for secured borrowing amid elevated gold prices

Non-banking finance companies (NBFCs), including housing finance companies (HFCs), registered higher credit growth of 14.2 per cent at ₹58.6 lakh crore in May 2026, compared to 11.4 per cent a year ago, on the back of robust growth in retail loans and agriculture and allied activities, per data on sectoral deployment of credit by NBFCs released by the RBI for the first time.credit growthIn the reporting month, NBFCs’ credit growth, however, is lower than scheduled commercial banks’ (SCBs) non-food bank credit growth. SCBs reported a credit growth of 17.4 per cent year-on-year (y-o-y) as on May 31, 2026, up from 8.8 per cent as on May 30, 2025.Sectoral credit data of NBFCs are based on the sample of (i) NBFCs in upper and middle layers and (ii) HFCs, accounting for about 87 per cent of total credit. Retail loans remained the key growth driver, expanding 19.5 per cent (y-o-y) to ₹25.2 lakh crore in May 2026 over 14.9 per cent a year ago, according to the RBI statement. Retail loans accounted for nearly 43 per cent of the sector’s overall loan book.Within retail loan, housing loan, vehicle loan and loans against gold jewellery displayed a robust growth in May 2026. Gold loans were the standout performer in NBFC retail lending, surging nearly 70 per cent y-o-y to ₹3.3 lakh crore in May 2026, driven by strong demand for secured borrowing amid elevated gold prices. Housing loans increased 10.9 per cent to ₹8.35 lakh crore and consumer durable loans also grew sharply by 42 per cent to ₹68,814 crore, reflecting healthy consumption demand, while vehicle loans rose 14.8 per cent to ₹6.18 lakh crore.Credit growth in agriculture and allied activities recorded a robust growth of 17.9 per cent (y-o-y) in May 2026 against 5.0 per cent a year ago. Credit growth in services sector moderated to 16.7 per cent (y-o-y) in May 2026 against 23.9 per cent a year ago. Among major contributors, growth (y-o-y) in credit to commercial real estate marked buoyant expansion.Credit to industry grew at a lower clip of 7.3 per cent (y-o-y) in May 2026, compared to 10.0 per cent, in May 2025. The RBI said moderation in growth in industry was primarily driven by subdued growth in infrastructure, a major constituent of the segment.Published on July 7, 2026