The year when NBFCs took lead in credit cycle

INDIA'S BORROWERS TOLD a very different story this year,a story that did not always mirror the global uncertainties or the cautious macro headlines that surrounded us.CY25 wasa year of contrasts.

- NIRMAL JAIN

While the external environment showed uneven momentum, domestic credit behaviour revealed a shift that was quieter, deeper and more structural. Beneath the surface, a new rhythm emerged in India’s lending landscape, and NBFCs found themselves at the heart of this transition.One of the most defining features of CY25 was the widening divergence in how different borrower segments responded to the economic cycle. Collateral backed lending, including gold loans, secured MSME credit and affordable housing finance, continued to show resilience. At the same time, parts of microfinance and unsecured lending came under visible pressure, particularly in geographies where household leverage had already been stretched. This contrast highlighted that India’s credit system is no longer a single monolithic story. Instead, it is evolving into a set of micro markets, each shaped by its own income dynamics, risk patterns and consumption behaviour. The year demonstrated that India’s credit appetite cannot be understood through broad aggregates alone.