With the growing demand for products such as home loans, car loans, gold loans and credit cards, the sector is expected to grow with a CAGR of 14-16% between FY25 and FY28. | Photocredit: Istockphoto
The increasing demand in the Indian retail credit market has opened new opportunities for non-bank financial companies (NBFCs) to expand their investor base, according to a recent report of Crisil Intelligence.
The report emphasized the strong and consistent growth that was seen in the Indian retail credit space and predicts a continuous speed in the coming years.
It stated: “The increasing demand and positive sentiments in the Indian retail credit market, offers both banks and NBFCs the opportunity to broaden their investor base.
“With more retailers who get into the fold, NBFCs have the chance to diversify financing sources and to attract new categories of investors.
Retail credit at £ 82 lakh crore, CAGR of 15% since FY19
According to the report, the Indian retail credit market has grown rapidly and it is expected that a compound annual growth rate (CAGR) of 14-16 percent will register between FY25 and FY28. These robust growth processes are powered by a steady demand for various retail credit products such as home financing, vehicle financing, vehicle financing, vehicle financing, vehicle financing, golden bearings, educational loans, consumer, personal loans, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit, credit card, credit, credit card, credit card, credit card, credit card, credit card, credit card. Credit cards, credit cards, credit cards, credit cards, credit cards, credit cards, credit cards, credit cards, credit cards, credit cards, credit cards and microfinance.
From FY25, the total retail credit in India was £ 82 Lakh Crore, which reflects a strong CAGR of 15.1 percent between FY19 and FY25. In FY25 alone, retail credit grew by 14 percent, supported by a consistent demand in important asset tips such as homes and cars.
Moreover, the increase in the use of credit cards and the demand for personal loans also played an important role in this growth.
The report also emphasized a substantial gap in the credit penetration of the retail trade in India. From the calendar year 2024, the ratio of the household credit BBP of India was 42 percent, considerably lower than the 60 percent of China, the 69 percent of the United States and the 76 percent of the United Kingdom.
This gave a great potential for further credit growth in India, especially in disadvantaged segments.
Credit-to-GDP Gap Signals Untapped Market
Moreover, the total credit BBP ratio of India was 93 percent in CY2024, compared to 138 percent for the United Kingdom and 198 percent for China. This further pointed to the headroom that is available for credit expansion in the country.
The report concluded that rising financial consciousness, government initiatives aimed at financial inclusion and improved access to credit for the disadvantaged population is expected to stimulate credit penetration. The Golf will mainly be led by retail credit, which means that financial institutions create an extensive opportunity to grow.
Published on August 6, 2025
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