Gold loans, consumer durables drive NBFC credit growth to 14.9% in July

Kolkata: High double-digit growth in gold loans and consumer durable loans helped non-banking financial companies (NBFCs) record a 14.9% per cent year-on-year overall credit expansion at the end of July.

Credit growth saw an acceleration this year compared to last year's 10.6%, showed the Reserve Bank of India (RBI) data.

However, compared to banks, NBFCs saw a slower credit growth to Rs 60 lakh crore, despite having a lower base. Banks recorded a 19.3% year-on-year growth to Rs 221 lakh crore.


Also read: Gold lending industry to witness nearly 28% CAGR over FY26-28E: Motilal Oswal Report

Gold loans from non-bank lenders surged 68.5% year-on-year to Rs 3.54 lakh crore, while their consumer durable loans expanded 51.5% to Rs 74.644 crore. In both cases, NBFCs accelerated the pace of growth this year. Last year, their gold loans expanded 43.9%, while consumer durable loans increased 18.8% year-on-year.

In comparison, banks' gold loans jumped 88% year-on-year to Rs 5.52 lakh crore, as per RBI data till July 31. Banks' consumer durable loans grew 4.8% to Rs 23,027 crore.

Overall retail loans within the NBFCs' credit pie, increased 21.4% year-on-year till July-end, compared with 13.7% a year ago. Housing loans, including those from specialised housing finance companies, increased 11.9% to Rs 8.55 lakh crore. Vehicle loans grew 15.1% to Rs 6.29 lakh crore.

NBFCs' credit to agriculture and allied activities recorded an 18% growth against 5.4% a year ago. Credit to industry increased at a slower 7.4% than 9.3% a year ago, primarily driven by subdued growth in infrastructure, a major constituent of the segment.

Credit growth in the services sector, too, moderated for NBFCs, declining to 15.2% from 24.5% a year ago. While credit to the commercial real estate marked buoyant expansion, credit growth in trade and transport operators segments witnessed deceleration, RBI said.