NBFCs lead the charge on tapping 'new to credit' customers: Report

Non-bank lenders are leading the charge on tapping 'new-to-credit' customers (NTC) in the financial system, even as the overall additions in such accounts have grown at a sluggish pace, a report said on Wednesday. Sixty per cent of the NTC accounts have been originated by the non-banking finance companies (NBFCs) in the 12 months till February 2026, Crif High Mark, a credit information company, said. Interestingly, the share of women borrowers has grown to 41 per cent in February 2026 as compared to 33 per cent five years ago, a sign of more active role in seeking credit by the gender. The report said consumer durable loans typically availed while buying mobile phones or some whitegoods are the primary entry point for NTC customers followed by gold loans and two-wheeler loans. From a geographical location perspective, over half of the NTC borrowers are from areas beyond the top-100 cities, it said. Women's NTC activity is strongest in Uttar Pradesh, Tamil Nadu, and Maharashtra, while men's NTC activity is concentrated in Uttar Pradesh, Maharashtra, Bihar, and West Bengal, the CIC said. Borrowers entering the formal credit system rose by 4.4 crore in the 12 months to touch 29 crore by the end of February 2026, and the overall compounded annual growth rate for NTC in the three years to February 2026 is 5.1 per cent. ''... lenders have become more selective, and NTC accounts now account for a moderated but still 17.8 per cent of overall originations by volume,'' it said.

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