74% First-Time Borrowers Pick NBFCs: Why?

A new FIDC-CIBIL report shows 74% of people getting their first-ever loan in India go to NBFCs, not banks. If you have no credit history, here is why NBFCs are often your only real option — and what to watch out for.

Here's what happened: A joint FIDC–TransUnion CIBIL report (June 2026) found 74% of all live new-to-credit customers in India had borrowed exclusively from NBFCs as their first formal lender.. NBFCs have expanded into smaller towns and underserved segments where traditional banks do not operate branches or have strict income-proof requirements.. The report highlights NBFCs as the primary gateway to formal credit — meaning your first loan shapes your entire credit history, making NBFC conduct directly critical to borrowers..

What you should do: Check your NBFC's RBI registration on the RBI website before signing any loan agreement — search 'RBI-registered NBFCs list' at rbi.org.in.. Ask for the Annual Percentage Rate (APR) in writing, not just the monthly rate — this reveals the true cost including processing fees and insurance add-ons.. Set up auto-debit for every EMI from Day 1 — your CIBIL score starts building the moment your first NBFC loan is reported, and even one bounce can delay your upgrade to a bank loan by 12 months..

After 12 months of clean NBFC repayment, proactively apply for a bank credit card with a low limit — this diversifies your credit mix and accelerates your CIBIL score jump faster than any single loan alone.