3 min readUpdated: Sep 8, 2026 01:02 PM IST
Retail credit extended by non-banking financial companies (NBFCs), including housing finance companies (HFCs), rose sharply in July 2026, with loans against gold jewellery and financing for consumer durables emerging as the fastest-growing segments, according to data released by the Reserve Bank of India (RBI).
Outstanding retail loans of NBFCs rose 21.4% year-on-year to Rs 26.06 lakh crore in July 2026, from Rs 21.46 lakh crore a year earlier. This was significantly faster than the 13.7% growth recorded in July 2025 over July 2024.
Within retail credit, loans against gold jewellery recorded the steepest expansion. Outstanding gold loans surged 68.5% year-on-year to Rs 3.54 lakh crore in July 2026, compared with Rs 2.10 lakh crore in July 2025. The segment had already grown 43.9% in July 2025 over the year-earlier period, RBI data shows.
According to the data, consumer durable loans also registered a strong increase, rising 51.5% to Rs 74,644 crore in July 2026 from Rs 49,283 crore a year earlier. This followed an 18.8% year-on-year rise in July 2025.
The sharp growth in these two categories comes against a broader acceleration in NBFC lending. Total outstanding credit of NBFCs, including HFCs, stood at Rs 59.89 lakh crore in July 2026, up 14.9% from Rs 52.10 lakh crore in July 2025. In comparison, total NBFC credit had expanded 10.6% in July 2025 over July 2024.
The data shows that retail loans now account for a substantial portion of NBFC credit. Housing loans grew 11.9% year-on-year to Rs 8.55 lakh crore in July 2026, while vehicle loans increased 15.1% to Rs 6.29 lakh crore. Both segments, however, expanded at a much slower pace than gold loans and consumer durable financing.
High gold prices, healthy consumption environment
The acceleration in gold loans also comes amid a period of elevated gold prices, which have increased the value of jewellery available as collateral and enabled borrowers to raise larger amounts against existing assets. Gold-backed lending can also provide quick access to funds, particularly for borrowers with limited access to conventional unsecured credit.
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Meanwhile, consumer durable financing points to stronger demand for credit-linked purchases of household and personal goods. The 51.5% annual increase in outstanding credit in this category far outpaced overall retail loan growth. India’s economy grew 7.8% year-on-year in Q1 FY27, supported by resilient consumer demand. This healthy consumption environment has encouraged discretionary spending on products such as smartphones, televisions, laptops and air conditioners. At the same time, rising prices for these products have made EMIs a more attractive option than upfront payments. As a result, consumer financing reached a record level in Q1 FY27, with electronics financing witnessing particularly strong growth, said an analyst.
Among other retail segments, agriculture and allied activities credit rose 18% year-on-year to Rs 80,271 crore. Services-sector credit increased 15.2%, while industry credit grew 7.4%.
The RBI cautioned that the sectoral credit figures are provisional and based on reporting by a sample of NBFCs in the Upper and Middle Layers and HFCs. The sample accounts for about 87% of total NBFC credit based on the comparable data cited by the central bank. The July figures therefore point to a continuing shift in the composition and pace of NBFC lending, with collateral-backed gold loans and consumption-linked financing registering rapid expansion.
