Banks have long been the largest source of credit in the country. They still are. Yet in several retail and specialised segments, non-bank lenders are gaining ground.
Banks accounted for roughly 72% of outstanding systemic credit in FY25, according to economist Mitali Nikore, citing CRISIL Intelligence's June 2025 report on India's loans and financial services industry.
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More recent data points to a shift in some parts of the retail credit market. Data from credit bureau CRIF High Mark cited by Nikore shows that NBFCs' share of retail loan originations by value rose from 20.7% in Q4 FY24 to 31.6% in Q4 FY26.
