India’s financial system is changing fast, and Non-Banking Financial Companies (NBFCs) are right at the center of this transformation. Over the next five years, NBFCs will play an even bigger role in driving credit growth, funding small businesses, and supporting financial inclusion. By 2030, experts believe NBFCs will contribute more to India’s financial sector profits than many traditional banks.
Today, NBFCs already serve millions of customers who banks often miss—small shop owners, farmers, students, and even households in tier-2 and tier-3 towns. With technology, new regulations, and rising demand, the sector looks set for a decade of strong expansion.
The Growth Path
Financial experts estimate that profits from India’s entire financial sector will double by 2030. In this journey, NBFCs will grow faster than banks. Data from FY 2025 already shows the momentum: NBFCs recorded nearly 20% growth in credit, compared to around 12% for banks.
Retail lending is a big part of this growth. Loans for homes, vehicles, education, gold, and microfinance already account for over half of all NBFC lending. Analysts expect this share to increase further as India’s young population demands more credit for consumption and lifestyle needs.
Another driver is lending to small and medium businesses. MSMEs form the backbone of India’s economy, but they often struggle to get credit from large banks. NBFCs are stepping in to fill this gap. Forecasts suggest that MSME lending from NBFCs could grow by 20% in FY 2026 alone.
Perfect Finserv, a rising NBFC, is an example of this trend. The company has focused heavily on lending to MSMEs in industrial clusters and semi-urban towns. By using flexible credit assessment methods, Perfect Finserv has attracted thousands of small business owners who lacked access to formal loans. This approach not only boosts profitability but also supports India’s broader economic growth.
Regulation and Policy Support
The Reserve Bank of India (RBI) has introduced new policies that strengthen the role of NBFCs in the financial ecosystem. One of the major moves was to allow NBFCs to act as market makers in rupee interest rate derivatives. This gives them more tools to manage risk and improve liquidity.
Another big step is the launch of RBI’s financial cloud platform, expected to go live by 2026. NBFCs will gain access to secure, low-cost digital infrastructure that improves data management and customer services. This move also helps NBFCs comply with data localization rules and reduce dependence on expensive private systems.
The RBI has also allowed NBFCs to offer non-fund based credit facilities. This is a big advantage for infrastructure companies that require guarantees, letters of credit, or other credit enhancements. With NBFCs entering this space, long-term project financing will become more accessible.
Perfect Finserv has already started preparing for these changes. The company has built its own digital lending platform that connects directly with the upcoming RBI cloud. It plans to offer faster loan approvals and risk management solutions for small enterprises once the system goes live.
Digital Innovation and FinTech Collaboration
Technology will define the future of NBFCs. Digital lending apps, AI-based risk analysis, and revenue-based financing are gaining popularity. Many NBFCs are already partnering with FinTech startups to expand customer reach.
For example, NBFCs are using artificial intelligence to assess the creditworthiness of borrowers with limited financial history. GenAI (Generative AI) is also transforming customer service, fraud detection, and loan monitoring. A recent industry study suggests that AI could improve productivity in Indian financial services by over 35% by 2030.
FinTech-NBFC partnerships are particularly important for small business owners and gig-economy workers. These borrowers often need flexible loan structures and quick disbursals. By combining NBFC lending expertise with FinTech technology, new financial products are emerging that suit modern lifestyles.
Perfect Finserv has invested heavily in this space. The company launched an AI-driven loan app in 2025 that provides credit assessments within minutes. It combines bank statement analysis with behavioral data to approve loans that traditional banks would reject. This innovation has attracted thousands of first-time borrowers in tier-2 cities.
Diversification into Wealth and Advisory Services
While lending remains the core of NBFC operations, many companies are moving into wealth management and financial advisory services. The logic is simple: India’s middle class and affluent households are growing, and they need professional advice to manage their investments.
Several established NBFCs have already launched wealth arms with targets of managing tens of thousands of crores in assets. By 2030, this segment could become a major revenue contributor. Wealth management also balances the risks of pure lending, which can sometimes face pressure from rising borrowing costs or defaults.
Perfect Finserv has also announced plans to expand into personal wealth advisory by 2027. It wants to serve MSME owners who graduate from being borrowers to high-net-worth clients. By offering mutual funds, insurance, and advisory services, the company hopes to deepen its relationship with existing customers and expand margins.
Risks and Challenges
The future looks bright, but NBFCs also face several challenges:
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Rising cost of funds – The RBI has tightened rules for bank lending to NBFCs and on unsecured loans. This means NBFCs will have to manage higher borrowing costs.
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Regulatory compliance – Stronger regulations on capital adequacy, risk assessment, and governance will require NBFCs to upgrade systems and processes. Smaller NBFCs may struggle to meet these requirements.
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Funding requirements – Industry studies show NBFCs will need more than ₹7 trillion in additional funding over the next few years to sustain their growth. Accessing low-cost capital remains a challenge.
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Profitability pressure – Credit growth is strong, but profitability could moderate in the short term due to competition, compliance costs, and rising interest rates.
Perfect Finserv acknowledges these challenges but believes its focus on technology, MSMEs, and wealth diversification will help it remain resilient. The company is actively seeking long-term funding from institutional investors to reduce dependence on short-term bank loans.
Vision 2030
Looking ahead, the NBFC sector in India by 2030 will look very different from today. Here are some key expectations:
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NBFCs will contribute more to sector profits than many banks.
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Retail and MSME lending will dominate the loan books.
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Digital lending platforms will cover most of the customer base.
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AI-driven risk management will become the norm.
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Wealth management and advisory services will create new revenue streams.
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Governance standards will rise, making NBFCs more transparent and reliable.
Perfect Finserv and similar companies represent the next generation of NBFCs. They are blending traditional lending with digital innovation, focusing on customer relationships, and diversifying services. By 2030, companies like these could become household names in the Indian financial system.
Conclusion
The future of NBFCs in India looks strong and promising. They are growing faster than banks, reaching underserved markets, and driving financial inclusion. With regulatory support, digital innovation, and new business models, NBFCs are well placed to double their scale by 2030.
At the same time, success will depend on how well they manage risks, secure long-term funding, and adapt to stricter regulations. Companies like Perfect Finserv show that it is possible to grow while staying innovative and customer-focused.
By 2030, NBFCs will not just fill the gaps left by banks—they will become the engines of India’s financial growth story.
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