Bharat Nirman – September 2026

India's NBFC sector has evolved into a critical pillar of the country's credit ecosystem as they continue to expand access across underserved consumers, micro-enterprises, and emerging geographies. This report examines the transformation of the NBFC landscape over the last decade, highlighting how the sector has driven financial inclusion at scale, and expanded its participation across retail and commercial lending -

• NBFCs have become the primary gateway to formal credit in India, serving 46% of all credit-active consumers and originating nearly half of all New-to-Credit borrowers, reinforcing their role as the engine of financial inclusion.
• NBFCs are steadily expanding their reach among women, younger consumers, semi-urban and rural populations, and commercial entities.
• NBFCs have significantly strengthened their presence in commercial lending, with their share of credit-active entities increasing from 10% to 18% over the past five years, highlighting their growing role in supporting India's nano, micro, and small business ecosystem.