India, Jan. 4 -- India's retail lending market is changing fast, and honestly, NBFCs are leaving banks in the dust when it comes to personal and consumer loans. In FY25, NBFCs reported 20 percent credit growth while banks managed just 12 percent. That's an eight-point lead for NBFCs. You can see it in market share, too. NBFCs now handle 41 percent of new personal loan disbursements by value, up from 27 percent two years earlier. Meanwhile, banks, both public and private, have slipped down to just 28 percent.

Why NBFCs Are Growing Faster Than Banks? This isn't just some temporary trend; NBFCs have real advantages. They can approve and disburse loans in hours, while banks tend to drag their feet for days. Plus, NBFCs are happy to serve fol...