2025: A Year of Shifts for NBFCs and a Steadier 2026 Outlook
Chandigarh, Jan 07: According to the latest central bank data, NBFCs recorded robust loan growth alongside improved asset quality, a combination that highlighted the sector’s resilience and disciplined risk approach. “2025 marked a year of measured strength for India’s NBFC sector. Even as global uncertainty and evolving macroeconomic conditions tested financial systems worldwide, NBFCs delivered solid credit expansion and improving asset quality, reinforcing their structural relevance within India’s financial ecosystem,” said Manish Shah, MD and CEO of Godrej Capital.
The year also marked a widening of access. Digital transformation played a decisive role as NBFCs used alternative data and digital payment signals, including QR payment histories, to extend faster formal credit to underserved merchants and small enterprises. “This technological led shift has helped bridge financial inclusion gaps and fostered stronger engagement with MSME borrowers,” Shah said, pointing to how technology-led models are reshaping lending beyond traditional frameworks.
Housing finance remained a steady pillar through 2025. Easing borrowing costs and favourable sentiment supported home loan demand, while portfolios such as gold loans and affordable housing continued to scale, with some NBFCs reporting double-digit AUM growth and profit increases, reflecting the breadth of growth across segments.
Looking ahead, the outlook for 2026 is cautiously optimistic. Industry projections indicate sustained momentum, supported by improved liquidity and regulatory tailwinds. “As NBFCs sharpen their focus on deeper market penetration and sustainable underwriting, the sector appears poised for responsible scale,” Shah said, adding that the momentum of 2025 sets the base for a balanced, growth-oriented year ahead.