RBI Data: Non-Food Bank Credit Jumps To 15.8% In April

Non-food bank credit in India grew by 15.8% year-on-year as of April 30, 2026, marking a significant acceleration from the 9.8% growth recorded in the same period last year, according to the Reserve Bank of India (RBI) [1]. The expansion was led by the services sector, which recorded the highest growth among major sectors, alongside a robust recovery in industrial lending [1].

Key takeaways

• Non-food bank credit increased by 15.8% in April 2026, up from 9.8% a year prior [1].
• The services sector grew 18.6%, while industry loans rose 15.1% year-on-year [1].
• MSME credit growth accelerated to 23.5% during the 2025-26 financial year [3].
• The RBI raised the collateral-free loan limit for micro and small enterprises to Rs 20 lakh effective April 1, 2026 [3].

Sectoral Surge in Services and Industry

The latest data, drawn from 41 scheduled commercial banks accounting for approximately 95% of total non-food bank credit, highlights broad-based demand across the economy [1]. The services sector recorded the fastest expansion at 18.6% year-on-year, compared to 10.1% in the previous year [1]. Meanwhile, bank credit to the industrial sector witnessed a significant improvement, growing by 15.1% year-on-year—more than double the 7.0% growth recorded a year earlier [1].

Within the industrial sector, lending to micro and small industries as well as large industries increased at a faster pace, while medium-sized industries maintained steady growth [1]. Stronger credit growth was specifically observed in infrastructure, basic metals and metal products, engineering, petroleum and coal products, nuclear fuels, and chemicals [1]. Conversely, credit growth in construction, textiles, and rubber and plastic products was relatively weaker [1]. Additionally, personal loans continued their strong momentum, increasing by 16.0% year-on-year compared to 11.9% in the previous year [1].

MSMEs Drive Annual Credit Momentum

The RBI’s Annual Report for 2025-26 provides further context on the fiscal year ending March 31, 2026, noting that overall non-food credit growth stood at 15.9% [3]. The report emphasizes that lending to micro, small, and medium enterprises (MSMEs) witnessed accelerated expansion, with outstanding bank credit to the sector growing by 23.5% compared to 18.3% in the previous year [3]. This growth was supported by a policy focus on financial inclusion and easier credit access [3].

To support this trend, the central bank enhanced the collateral-free loan limit for micro and small enterprises from Rs 10 lakh to Rs 20 lakh effective April 1, 2026 [3]. The RBI also noted that the weighted average lending rate on fresh rupee loans moderated across all sectors during 2025-26, with the sharpest decline recorded in rupee export credit, followed by education, professional services, and MSMEs [3]. Looking ahead, the central bank has proposed a review of the framework for the revival and rehabilitation of MSMEs for the 2026-27 period [3].