NBFCs Drive India's Credit Boom: AI, Rural Lending and Growth

Industry leaders at the BT Banking & Economy Summit highlighted how NBFCs are stepping up to deepen credit penetration across India, especially in areas underserved by traditional banks. From rural lending to AI-driven decision support, NBFCs are being positioned as critical enablers of the Viksit Bharat growth vision.

Leaders like Hitesh Sethia emphasized three pillars for the future of financial services: deep capital, deep technology, and deep trust. Platform-based models could help institutions collaborate to overcome capital constraints and spread risk more efficiently. AI is already used in customer service and operations, but the bigger opportunity lies in helping customers choose complex financial products more easily and with less cognitive load.

Gunit Chadha noted that both large NBFCs and niche players play essential roles. Smaller NBFCs can thrive by serving segments such as MSMEs or borrowers with limited income documentation, requiring customised products and deeper credit assessment. While this strengthens inclusion, sector consolidation is likely as players scale and seek efficiency.

Overall, the conversation underscored how NBFCs, backed by capital and technology, are catalysts for India’s financial inclusion and growth. The path ahead will balance innovation with prudent regulation, while continuing to expand access through closer collaboration between lenders, fintechs, and what the five-year roadmap for the sector holds.

With the right mix of trust, technology, and targeted lending, NBFCs could help accelerate the vision of a more inclusive, credit-enabled economy.

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