Retail loans by non-banking financial companies (NBFCs), including housing finance companies (HFCs), saw robust growth in July, led by gold jewellery and consumer durable segments.

Outstanding retail loans of NBFCs grew 21.4% year-on-year to Rs 26.06 lakh crore in July 2026 from Rs 21.46 lakh crore a year ago, according to sectoral deployment data released by the Reserve Bank of India (RBI). This was at much greater acceleration than the 13.7% growth posted in July 2025 over July 2024.

Gold Loans for NBFCs vs. Banks

The steepest climb within the retail segment was recorded by loans against gold jewellery, which surged 68.5% YoY to reach outstanding of Rs 3.54 lakh crore in July 2026. A year ago, it was at Rs 2.10 lakh crore after having accelerated at 43.9% over July 2024.

In comparison, bank credit against gold jewellery moderated to 88.1%, with an outstanding book of Rs 5.52 lakh crore in July 2026. A year ago, the YoY growth reported was 136.4% in July 2025.

Incidentally, NBFCs have added Rs 1 lakh crore in loans against gold jewellery over eight months through March 2026, taking the outstanding to Rs 3.10 lakh crore from Rs 2.10 lakh crore in end-July 2025. This was also the period when banks ramped up their gold loans portfolio, adding Rs 1.67 lakh crore from Rs 2.94 lakh crore as on 25 July 2025 to Rs 4.61 lakh crore by March-end 2026.  

Consumer durable Loans for NBFCs vs. Banks

For NBFCs, the next fastest growth was in consumer durables credit, which rose 51.5% YoY to Rs 74,644 crore in July 2026 from Rs 49,283 crore a year earlier. The YoY growth in July 2025 was 18.8%.

Bank credit to consumer durables pales in comparison with a 4.8% YoY growth to Rs 23,027 crore in July 2026, after contracting 1.1% in the earlier year.  

Total credit

Total credit to NBFCs, including HFCs, saw an overall 14.9% YoY expansion to Rs 59.89 lakh crore in July 2026 from outstanding of Rs 52.10 lakh crore in July 2025. Total NBFC credit had expanded 10.6% in July 2025 over July 2024.

Bank credit had seen a faster YoY growth of 19.3% in July 2026, taking its outstanding to Rs 220.78 lakh crore.

Housing Loans

The RBI data shows retail credit gaining as a contributor to total NBFC credit. Besides gold and consumer durables credit, housing loans grew 11.9% YoY to Rs 8.55 lakh crore in July 2026, compared with 4% growth a year earlier. Incidentally, housing loans is the largest in size within the retail segment.

Banks also saw an 11.3% YoY growth in housing loans in July 2026, taking the outstanding to Rs 34.28 lakh crore.

Vehicle Loans

For NBFCs, vehicle loan, the second-largest in the retail segment, saw steady YoY growth of 15.1% to Rs 6.29 lakh crore, compared with growth of 15.3% in July 2025 over July 2024. For banks, outstanding on vehicle loans stood at Rs 7.65 lakh crore, up 18.8%.

Industry

For NBFCs, credit to industry comes after retail loans, contributing to an outstanding of Rs 22.13 lakh crore in July 2026, up 7.4% YoY. Industry credit also saw moderate credit of 9.3% in July 2025 over July 2024. 

Of this, infrastructure, a major constituent of the segment, grew 6.2% YoY in July 2026 to Rs 20.16 lakh crore, compared with 8.1% growth in July 2025 over earlier year. Within infrastructure, power grew at 6.9% to Rs 14.36 lakh crore, compared with a 12.3% growth a year earlier.

Bank credit to industry grew much faster than NBFCs, pacing at 20% to reach outstanding of Rs 48.01 lakh crore in July 2026.

Services sector

NBFCs’ loan growth in the services sector slowed to 15.2% in July 2026 with outstanding of Rs 7.69 lakh crore, compared with 24.5% posted a year ago. 

Within this, credit to commercial real estate surged 22.3% to Rs 1.03 lakh crore in July 2026, compared with a 10% growth a year earlier.

Bank credit to commercial real estate also saw strong YoY growth at 21.5% in July 2026 to Rs 6.69 lakh crore, compared with a 15.7% growth in July 2025 over July 2024. 

NBFC credit to trade and transport operators slowed to 14.7% (outstanding of Rs 1.16 lakh crore) and 10.7% (Rs 1.79 lakh crore), respectively. The growth in July 2025 over the earlier year was at 24.3% and 11.2%, respectively.

Credit to agriculture and allied activities grew 18% YoY to Rs 80,271 crore in July 2026, compared with a 5.4% YoY growth in July 2025.