The Top 10 NBFCs in India 2025 – In India, non-banking financial companies, or NBFCs, have become the basis of the financial system, specifically for individuals who do not fit into the conventional credit range. NBFCs have more flexible, customer-oriented, and light lending practices than traditional banks. By 2025, this sector is expected to grow significantly, emerging as a major force in digital lending, credit innovation, and financial inclusion.
With the increasing demand for MSME credit, gold loans, auto loans, personal loans, and home finance, Non-Banking Financial Companies (NBFCs) have positioned themselves alongside a growing list of emerging industries. Here we dive into the Top 10 NBFCs in India 2025 based on aspects like service innovation, market performance, client acquisition, and digital transformation.
Key Stats
- Banking and finance reports that the assets under management in India are at 45 trillion as of 2025. This shows a huge growth that suggests people are taking loans for different things, like vehicles and gold. House, EV loans, and more.
- The Economic Times reports that the balance sheets of the NBFCs expanded that showing the growth in the loan and companies managing more capital than in the previous years. This shows a huge demand for auto finance software for companies to effectively manage the loan applications.
- Economic Times reports that the Fintech NBFCs deepened their credit access, giving away 11 crore loans, taking the number to about 1 lakh crore in FY 2024/25. This shows a huge demand for loans and also for the finance software that automates the loan lifecycle and helps NBFCs to easily manage the loan applications.
The Growing Influence of NBFCs in India’s Financial Ecosystem
Non-Banking Financial Companies (NBFCs) have changed almost beyond recognition in the last ten years. They have become an indispensable part of India’s credit economy. As formal lenders, NBFCs have stopped being marginal players; in fact, in certain credit segments, they even surpass traditional banks and work as a bridge to the financially excluded ones. The data of the industry reveal that the credit that NBFCs have been providing to the economy, measured through the ratio of their credit to GDP, has increased to about 26% in FY25, which is a considerable jump from approximately 16% in FY19, thus signifying their increasing involvement in the spread of credit across the country. This increase indicates that they have been able to meet the credit demand of those segments that are generally left out by the conventional banking system – especially among retail, small businesses, and first-time borrowers.
Strong Credit Growth & Sector Contribution
NBFCs witnessed a strong credit growth in the financial year 2025, even higher than that of banks in many cases. It is reported that the credit growth of NBFCs has increased by almost 20% year-on-year, whereas that of commercial banks was around 12% during the same period. Such an expansion is a clear indication of NBFCs nimbleness and ability to provide loans to various segments such as consumer finance, vehicle loans, and affordable housing.
The retail and services sectors have been the main drivers of this growth. As per regulatory highlights, adopting services and retail loans, these non-banking financial companies (NBFCs) together contributed more than 80% of the total credit disbursed by these entities in India during FY25. This shows that they have become very important in meeting the day-to-day credit requirements of Indian consumers.
Diverse Business Models & Segment Strengths
By focusing on the areas where traditional lenders have relatively weaker penetration, NBFCs have thus strengthened their foothold:
- Vehicle finance and used-vehicle loans are among the structural strengths of the NBFCs. Despite the supply challenges, these segments will continue to offer good value, and alongside the rapid growth of the used-vehicle loans, they can be expected to expand at around 16-17% annually.
- Affordable housing finance is still a major area of growth, especially for those smaller loans that can be supported by government incentives.
- Micro, Small & Medium Enterprise (MSME) lending is becoming a popular avenue, with NBFCs gradually expanding their small-ticket lending portfolios, which banks normally consider as being risky.
Even though there is overall growth, the microfinance subset within NBFCs has been under pressure, and therefore, for everyone, the asset quality has deteriorated faster in this segment than in others, thus revealing that the targeted risk management is becoming the real need of the hour.
The Top 10 NBFCs in India 2025
#1. Bajaj Finance Ltd.
Among NBFCs, Bajaj Finance is known as the best. The firm achieved further consolidation of its position by offering a full-stack digital lending platform and AI-based risk assessment in 2025. Its loan portfolio includes customer, SME, and commercial lending services to 60 million clients, and a customer-oriented EMI network and co-branded credit cards have expanded its reach in tier-3 towns.
#2. HDFC Ltd., Housing Development Finance Corporation
HDFC Ltd.’s legacy businesses, even after the merger with HDFC Bank, continue to grow in the home finance market. The company’s strong market visibility and presence in semi-urban areas, along with its provision of affordable loan products, help maintain HDFC’s reputation among homeowners. HDFC is a promising NBFC for clients who support a green environment, as it invests in green housing initiatives.
#3. Muthoot Finance Ltd.
The biggest gold loan NBFC in India, Muthoot Finance, has experienced quick growth by using its huge branch network and wide rural clientele. It is ideal for unbanked individuals since it offers quick, low-documentation loans that are secured by gold. Its mobile gold loan app has been widely utilized in 2025, enabling real-time disbursement and doorstep services.
#4. Aditya Birla Finance Ltd.
This NBFC, which is a separate entity of Aditya Birla Capital, has expanded into investing, insurance, and personal and SME financing. Mid-sized businesses have taken notice of their structured finance solutions and corporate lending range. Widely utilized is the company’s ABFL InstaLoan product, which offers business loans in a matter of hours.
#5. Mahindra & Mahindra Financial Services Ltd.
With a clear rural focus, M&M Finance caters to self-employed individuals, small business owners, and farmers. It is still one of India’s largest lenders for farm equipment and tractors. With the utilization of hybrid loan approval and on-the-ground agent networks, it entered rural digital lending in 2025.
#6. Tata Capital Financial Services Ltd.
Tata Capital has excellent brand reliability because it is a member of the Tata Group. Applications for commercial and personal loans have been made better by its digital platforms. More than 60% of client interactions will be managed by Tata Capital’s AI-based chatbot “TIA” by 2025, enhancing operational effectiveness.
#7. Shriram Finance Ltd.
Shriram Finance targets the underserved markets in rural and semi-urban areas. A dominant force in the used car and small business loan markets has been established by the arrival of Shriram Transport and Shriram City Union Finance. The NBFC is famous for its custom loan and collection strategies based on industry agents.
#8. L&T Finance Holdings Ltd.
With the help of engineering behemoth Larsen & Toubro, this NBFC has created a specialty in financing for rural locations and infrastructure. To reduce non-performing assets (NPAs) and increase profitability, the corporation switched its focus from wholesale to retail lending in 2025 and made investments in advanced risk models.
#9. Manappuram Finance Ltd
After Muthoot, Manappuram is among the gold loan organizations with the fastest rate of growth. With an attention to South Indian markets, it has dabbled in microfinance, auto loans, and foreign exchange services. It is known with younger borrowers because of its mobile-first strategy and quick approval process.
#10. IIFL Finance Ltd.
IIFL Finance is famous for its fast loan approvals and easy online financing process. Customers can finish the whole loan cycle from eligibility to disbursal in only a few minutes with the IIFL Loans app in 2025. To boost its reach, it also connects with digital wallets and fintechs.
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In 2025, India’s pinnacle NBFCs are using monetary inclusion by way of delivering faster, flexible credit throughout retail, MSME, and infrastructure sectors
Conclusion
In conclusion, NBFCs are more than just shadow banks in India nowadays. By 2025, they will be vital, technologically advanced financial companies driving India’s credit development and financial inclusion initiatives. Whether you are an investor, borrower, or just following India’s financial field, monitoring these top 10 NBFCs offers essential information on the path of the country’s economy.
FAQs
In what ways is an NBFC different from a bank?
Even though they do not have a banking license, non-banking financial companies, or NBFCs, provide financial services like loans, asset financing, and investment products. NBFCs have more scope in approving loans and require less paperwork than banks, but they are not able to issue checks or take demand deposits.
Are NBFCs subject to Indian regulations?
Indeed, the Reserve Bank of India (RBI) guides NBFC regulation. Following liquidity crises and the defaults of some main firms, the RBI has strengthened regulatory standards for NBFCs in recent years. By 2025, different NBFCs would have to adhere to stricter asset classification and capital adequacy standards.
In 2025, which NBFC provides the best personal loans in India?
The top NBFCs for personal loans in 2025 are Bajaj Finance and Tata Capital because of their fast processing, high approval rates, and easy-to-use online platforms. They are amazing options due to their clear fees and good interest rates.
Can I purchase stocks or bonds to invest in NBFCs?
Indeed, a wide number of leading NBFCs, including Muthoot, Shriram Finance, and Bajaj Finance, are listed on Indian stock exchanges. For fixed income, investors might purchase equities or subscribe for Non-Convertible Debentures (NCDs). Before investing, though, always check their credit ratings and financials.
How can one decide which is the topmost NBFC in a country?
The topmost NBFC ranking is decided by the assets it is managing at present. Market capitalization, financial curve, and other things are checked before deciding the top NBFC.
How much risk is involved in investing or getting financed by an NBFC?
NBFCs follow the strict rules and guidelines set by the RBI. It is a safe investment as the company follows the strict rules.
Is taking a loan or credit from an NBFC a regular practice in India?
Taking loans from the NBFCs is a popular way to get financed. Many people in India take loans from NBFCs rather than taking them from banks. Always take loans from a trusted NBFC that follows strict RBI guidelines.
Do NBFCs provide their services to startups and newly emerging businesses?
NBFCs provide services to small-scale companies or startups that have less capital and have strong ideas.
Do top NBFCs focus only on retail loans in 2025?
No, whilst retail loans shape a prime share, pinnacle NBFCs also finance MSMEs, infrastructure tasks, business automobiles, housing, gold loans, and renewable energy sectors.
Do top NBFCs manipulate risk during economic slowdowns?
NBFCs use different techniques to go through the slow economic period to avoid any risk or losses. The company uses tools, data, and other things to avoid any losses and to easily sail through the period.
