Global investors are returning to mid-tier NBFCs as sector growth rebounds, regulation strengthens, and diversified, asset-backed models offer stable yield with controlled risk and scalable opportunity.
Key Points:
• NBFC AUM expected to grow ~18–19% annually, crossing ₹50 lakh crore by 2027
• Vehicle finance and used-car lending remain strong growth drivers
• Better regulation and ALM discipline have reduced past risks
• Diversified, secured loan portfolios improve stability
• Co-lending with banks enhances capital efficiency
• Emerging segments like EV and MSME finance add growth optionality
• Lower cost of funds improving margins
• Attractive risk-reward balance for global investors
• Mid-tier NBFCs gaining valuation and funding access
• Early movers likely to benefit most
