Non-banking finance companies accelerated lending to households in September 2026, with credit to gold jewellery and consumer durables rising at a pace far above the broader portfolio, according to Reserve Bank of India data. The numbers point to a credit market that remains active in secured and semi-secured retail segments, even as overall NBFC loan growth settled at a more measured 15.4% year-on-year.
The sharpest expansion came in loans linked to gold jewellery, which climbed 66.1% from a year earlier to Rs 3.74 lakh crore. Credit for consumer durables also advanced strongly, rising 54.4% to Rs 77,896 crore. Together, the data suggest that NBFCs continued to lean on retail lending categories that are typically fast-moving, collateral-supported and closely tied to household consumption cycles.
Gold-backed lending surge
The rise in gold jewellery credit is notable both for its scale and for what it signals about borrower behaviour. In India, gold remains a widely used household asset, and loans against jewellery often serve as a quick source of liquidity for families and small businesses. A 66.1% jump in outstanding credit indicates that NBFCs have been expanding their presence in this segment aggressively, likely supported by strong demand for short-tenor borrowing and the relative safety of collateralised lending.
The increase may also reflect a broader preference for asset-backed credit at a time when lenders are balancing growth with risk control. Gold loans are generally viewed as lower-risk than unsecured consumer credit because the underlying collateral can be liquidated if borrowers default. For NBFCs, that makes the segment attractive in periods when funding costs, asset quality concerns or regulatory scrutiny can make unsecured lending less appealing.
Consumer demand stays firm
Consumer durables lending, which typically finances purchases such as appliances and electronics, also posted a robust 54.4% increase. The category is often used as a proxy for discretionary consumption and household confidence, especially in urban and semi-urban markets. The rise to Rs 77,896 crore suggests that demand for financed purchases remained healthy in September, helped by festive-season buying patterns and the continued penetration of point-of-sale financing.
For NBFCs, consumer durables loans are strategically important because they help build retail customer relationships and generate high-volume, short-cycle business. The segment is also closely linked to partnerships with retailers and manufacturers, making it a useful channel for lenders seeking scale in consumer finance. The latest data indicate that this channel remained active despite a broader environment in which lenders have been selective about growth.
Broader NBFC credit picture
While the two retail categories surged, overall NBFC credit growth stood at 15.4%, taking total outstanding credit to Rs 61.69 lakh crore. That pace is healthy by banking-system standards, but it is far below the growth seen in gold jewellery and consumer durables, highlighting how concentrated momentum has become in specific retail pockets.
The divergence matters. It suggests that NBFCs are not expanding uniformly across all lending lines, but are instead prioritising segments where demand is visible, ticket sizes are manageable and collateral or repayment visibility is stronger. This pattern is consistent with a cautious lending environment in which institutions are seeking to preserve asset quality while still capturing consumer demand.
For the automotive, EVs and mobility ecosystem, the broader implication is that retail credit conditions remain supportive for consumption-linked purchases, even if the strongest gains are not yet visible in vehicle finance. If household borrowing appetite remains firm in gold-backed and durables-linked products, it could eventually support financing demand across other consumer categories as well, including two-wheelers, entry-level cars and EVs.
The RBI data therefore paint a nuanced picture: NBFCs are still growing, but the growth is increasingly being driven by specific retail lending niches rather than a broad-based credit boom. That makes the September numbers an important signal for lenders, investors and consumer-facing industries watching the pace and composition of credit in India's retail economy.