India's non-banking financial companies have emerged as the dominant gateway for first-time borrowers, with their share of new-to-credit customers rising to 50% in June 2026 from 24% in June 2016, according to a TransUnion CIBIL-FIDC report that analysed data from about 2,000 NBFCs. The findings point to a structural change in the country's retail credit market, where NBFCs are increasingly filling the gap left by traditional lenders in reaching consumers with limited or no prior credit history.
The report is significant for the automotive and mobility ecosystem because vehicle finance has long been one of the most important channels through which households build a credit footprint. As India's passenger vehicle, two-wheeler and electric mobility markets expand, NBFCs are playing a larger role in financing first-time buyers, especially in semi-urban and rural markets where access to formal banking products can remain uneven. For many customers, a vehicle loan is not just a purchase decision but the first recorded step into the formal financial system.
NBFCs Expand Credit Access
The rise in NBFC participation reflects both demand-side and supply-side shifts. On the demand side, India's growing aspirational middle class, rising mobility needs and the spread of digital lending have created a larger pool of borrowers seeking quick, tailored financing. On the supply side, NBFCs have built distribution networks and underwriting models that allow them to serve customers who may not fit the stricter documentation or score thresholds often associated with banks.
This has made NBFCs especially relevant in segments such as two-wheelers, used vehicles, small commercial vehicles and emerging EV categories, where affordability and flexible repayment structures matter as much as headline interest rates. The report suggests that NBFCs are no longer peripheral lenders in these markets; they are central to credit creation among customers who are borrowing for the first time.
The implications extend beyond lending volumes. A larger share of new-to-credit customers entering the system through NBFCs can deepen financial inclusion, but it also places greater responsibility on lenders to ensure prudent underwriting and borrower education. First-time borrowers are often more vulnerable to repayment stress if income is irregular or if they underestimate the full cost of borrowing, including insurance, maintenance and other ownership expenses.
Mobility Finance Takes Centre Stage
For the automotive sector, the NBFC-led expansion in new-to-credit lending is especially important at a time when India's mobility market is undergoing a transition. Electric vehicles, entry-level cars and affordable two-wheelers are increasingly being sold into markets where financing determines adoption as much as product availability. NBFCs, with their localised sales relationships and faster loan processing, are helping manufacturers and dealers convert demand into actual purchases.
The report's findings also indicate that the credit ecosystem supporting mobility is becoming more diversified. Banks remain important, but NBFCs have carved out a distinct role by serving borrowers who may be new to formal credit, self-employed, or located outside major urban centres. In practical terms, this means NBFCs are helping to widen the customer base for automakers and EV makers alike, while also shaping the pace of penetration in price-sensitive segments.
Industry watchers will view the 50% share as evidence that NBFCs have become indispensable to India's retail credit architecture. The trend also suggests that credit bureaus and lenders will need to continue refining risk models as more first-time borrowers enter the system through vehicle and mobility finance. If managed well, the shift could support broader consumption and asset ownership. If not, it could expose lenders to higher delinquency risks in a market that is still evolving.
Credit Growth, New Risks
The broader message from the TransUnion CIBIL-FIDC study is that India's credit expansion is becoming more inclusive, but also more dependent on lenders that specialise in underserved segments. NBFCs' growing role in new-to-credit lending is a sign of market maturity, yet it also highlights the need for disciplined growth, especially as competition intensifies in vehicle finance and EV lending.
For policymakers and lenders, the challenge will be to sustain access without compromising asset quality. For consumers, the expansion of NBFC-led lending offers a clearer path into formal credit and, by extension, into ownership of vehicles that support work, mobility and household income. In that sense, the report captures a broader economic shift: India's credit story is increasingly being written on the road, one first-time borrower at a time.