NBFCs Originate Half of India's First-Time Borrowers as Phone Financing Surges
· Business · Economic Times
Non-banking finance companies originated about half of India's new-to-credit customers in the three months ended June 2026, up from 24% a decade ago, according to a report by TransUnion CIBIL and the Finance Industry Development Council. Consumer-durable loans emerged as the leading product for these first-time borrowers, accounting for 30% of industry-wide originations between January and June 2026. This trend marks a shift from a decade ago, when Kisan Credit Cards and agricultural loans were the primary entry products into the formal credit system. Phone financing drove much of this growth, with mobile phones serving as a common initial purchase for young borrowers entering formal credit. Loans below ₹50,000 accounted for 93% of consumer-durable originations in the June 2026 quarter, reflecting a wider reach among Generation Z consumers.
Why it matters
First-time borrowers in India are increasingly accessing formal credit through consumer-durable loans and phone financing rather than agricultural credit, shifting the retail lending landscape for non-banking finance companies.
Read the original report — Economic Times
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