NBFCs gain ground in retail lending as Tata, Godrej and Aditya Birla scale gold loans
Non-bank lenders are taking a larger share of India’s small-ticket, personal and consumer-durable credit market. Tata Capital’s Yogloans deal and planned gold-loan expansion by Godrej Capital and Aditya Birla Capital point to a growing distribution opportunity across underserved retail and MSME borrowers.
What happened
NBFCs and fintechs are gaining share in India’s small-ticket retail, consumer-durable and gold lending. Tata Capital, Godrej Capital and Aditya Birla Capital
Key facts
- Banks held roughly 72% of systemic credit in FY25
- NBFC retail-loan origination value share rose from 20.7% in Q4 FY24 to 31.6% in Q4 FY26
- NBFCs originated over 91% of personal loans and over 86% of consumer-durable loans by volume in Q4 FY26
- India MSME credit gap is about ₹30 lakh crore
- Tata Capital acquired 88.6% of Yogloans, with 160+ branches and a ₹700+ crore loan book
- Godrej Capital targets a ₹5,000 crore gold-loan book by 2031
- Aditya Birla Capital plans around 1,000 gold-loan branches
- Securitisation volumes reached ₹2.55 lakh crore in FY26
Why this matters
Tata Capital’s Yogloans deal and rivals’ gold-loan plans raise the strategic value of acquiring or partnering with specialized lenders, distribution networks and secured-credit capabilities.