NBFC loans to grow 15-17% in FY26 on GST reforms, liquidity boost: Icra
The loan book of non-banking finance companies (NBFCs) in India is expected to grow 15-17 per cent in the financial year 2025-26 (FY26) on GST reforms and improved liquidity conditions, according to rating agency Icra.
Their credit expanded 17 per cent in FY25 and 24 per cent in FY24, respectively.
The recent goods and services tax (GST) rate cuts would support credit expansion for banks and NBFCs in the near term, Icra said in a statement.
Asset quality stress in retail and micro, small & medium enterprises (MSME) segments resulted in slower growth for private sector banks and NBFCs. With improvement in economic activity after GST rate cuts, the growth appetite will improve, which will support the credit offtake, said Icra’s Co-Group Head (financial sector ratings) Anil Gupta.
Loans to small businesses, and unsecured personal and consumption loans, stand at approximately 34 per cent of the total NBFC credit of Rs.35 trillion as of March 2025.
