India's non-banking finance companies have emerged as a central gateway to formal credit for first-time borrowers, with their share of new-to-credit customers rising to 50% in June 2026 from 24% in June 2016, according to a TransUnion CIBIL-FIDC report that analysed data from about 2,000 NBFCs.
The findings point to a decade-long structural shift in India's retail lending market, where NBFCs have increasingly stepped into segments often underserved by traditional banks. For the automotive, EV and mobility ecosystem, the trend is especially significant because vehicle purchases, two-wheeler upgrades, commercial mobility assets and emerging electric vehicle financing all depend heavily on lenders willing to underwrite borrowers with limited or no prior credit history.
NBFCs Expand Credit Access
The report suggests that NBFCs are no longer operating at the margins of consumer finance. Instead, they are becoming a primary channel through which millions of Indians enter the formal credit system for the first time. That matters because new-to-credit borrowers typically include younger consumers, self-employed individuals, gig workers, small business owners and households in smaller cities and semi-urban markets, many of whom may not qualify easily for bank loans.
By serving this segment, NBFCs are helping deepen financial inclusion while also broadening the addressable market for vehicle and mobility finance. In practical terms, this means more first-time buyers can access loans for two-wheelers, passenger vehicles, commercial vehicles and increasingly electric mobility products, which often require flexible underwriting and faster disbursal than conventional bank products.
The rise in NBFC participation also reflects the sector's distribution strength. NBFCs typically operate with wider dealer networks, stronger local market knowledge and product structures tailored to borrowers with thin credit files. That combination has made them particularly relevant in automotive finance, where speed, convenience and relationship-based lending can be decisive at the point of sale.
Why Mobility Lenders Matter
The timing of the shift is notable for the mobility sector, which is navigating a transition marked by electrification, changing ownership patterns and the rise of shared and commercial mobility models. As EV adoption expands, lenders are being asked to finance not just conventional vehicles but also new asset classes such as electric two-wheelers, fleet vehicles and last-mile delivery assets.
NBFCs are often better positioned than larger banks to test these newer lending categories because they can adapt underwriting to local demand, residual value assumptions and borrower cash-flow patterns. That flexibility is especially important in the EV market, where financing structures are still evolving and the used-vehicle ecosystem remains less mature than in internal combustion engine segments.
The report's data also highlights a broader policy and market question: how to sustain credit expansion without compromising asset quality. New-to-credit borrowers can offer strong growth potential, but they also carry higher underwriting uncertainty because lenders have limited repayment history to assess. As a result, the expansion of credit access must be matched by robust risk management, better data use and disciplined collection practices.
Credit Growth, Risk Balance
For the financial system, the rise of NBFCs in the new-to-credit market is both a sign of inclusion and a test of resilience. A larger share of first-time borrowers entering through NBFCs can support consumption, vehicle ownership and small enterprise activity, all of which feed into broader economic momentum. At the same time, it increases the importance of credit bureau data, portfolio monitoring and prudent lending standards.
The TransUnion CIBIL-FIDC report, covering roughly 2,000 NBFCs, indicates that the sector's reach has widened materially over the past decade. That expansion is likely to remain central to India's retail credit story, particularly in segments tied to mobility and transport where financing is often the bridge between aspiration and purchase.
For automakers, EV manufacturers, dealers and fleet operators, the message is clear: the availability of credit is becoming as important as product design or pricing. If NBFCs continue to anchor first-time borrowing, they will remain a critical force shaping demand across India's automotive and mobility markets.