NBFC Assets Set to Cross ₹50 Lakh Crore Milestone by 2027
India’s non-banking financial companies (NBFCs) are projected to maintain strong 18-19% annual growth, pushing their assets under management (AUM) beyond ₹50 lakh crore by March 2027, according to a Crisil Ratings report.
Key Growth Drivers
The sustained expansion will be fueled by several factors:
- Increased consumer spending and retail credit demand
- Supportive policy measures including GST rationalization
- Stable inflation environment
However, the report notes that growth patterns will vary across different NBFC segments based on risk management approaches and funding accessibility.
“Vehicle finance and home loans will see steady growth amid intensifying competition. However, exercising due caution on heightened customer leverage, NBFCs will adopt risk-calibrated growth especially in the micro, medium and small enterprises (MSME) and unsecured loan segments,” said Krishnan Sitaraman, Chief Ratings Officer, Crisil Ratings.
Segment-Wise Performance Outlook
Vehicle Finance (22% of AUM): Expected to grow 16-17% driven by premium vehicle demand and used-vehicle financing, despite strong bank competition in new vehicles.
Home Loans (22% of AUM): Projected to expand 12-13% over two years, though facing stiff competition from public sector banks.
Personal Loans (11% of AUM): Growth likely to accelerate to 22-25% following regulatory adjustments.
Unsecured MSME Loans (6% of AUM): Growth may slow to 13-14% due to increasing delinquency rates.
The NBFC sector’s robust growth trajectory highlights its expanding role in India’s financial ecosystem, with careful risk management becoming increasingly crucial across different lending segments.
