For the first time, the Reserve Bank of India (RBI) has released monthly data detailing sectoral credit growth for Non-Banking Financial Companies (NBFCs). The figures for May 2026 show that NBFC loan growth accelerated to 14% year-on-year, up from the 11% recorded during the same period last year.
This momentum was primarily powered by a sharp rise in retail consumption loans and a robust recovery in agricultural lending, offsetting a noticeable slowdown in industrial and infrastructure credit.
Key Sectoral Drivers
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Retail Loans (Up 20%): Emerging as the primary growth engine, retail credit expanded at a 20% year-on-year clip compared to 15% last year.
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Agriculture Credit (Up 18%): Lending to agriculture and allied activities experienced a massive spike, surging 18% year-on-year from a low base of just 5% growth in May 2025.
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Services Sector (Up 17%): While overall services credit moderated from last year’s 24% growth, commercial real estate lending proved to be a major bright spot, expanding by a staggering 40% (up from 10% last year).
The Retail Breakdown: Gold and Consumer Durables Surge
Digging deeper into the consumer lending categories reveals where the retail momentum is concentrated:
| Segment | Growth Rate (YoY) | Key Detail |
| Gold Loans | ~70% | Outstanding loans against gold jewellery reached ₹3.29 lakh crore, doubling the 39% growth pace seen last year, riding on elevated gold prices. |
| Consumer Durables | 42% | Strongly outpaced banks (where consumer durable lending actually fell by 3%), climbing significantly from 21% last year. |
| Vehicle Loans | 15% | Maintained steady traction, slightly down from the 16% growth recorded in the previous year. |
The Industrial Contrast: While retail thrived, NBFC credit to heavy industry and infrastructure slowed to 7.3% (down from 10% last year). This stood in stark contrast to commercial banks, which registered a robust 18% credit expansion to the industrial sector over the same period.
