# RBI Data: Non-Food Bank Credit Jumps To 15.8% In April **Published:** 2026-05-30T04:31:30.000Z **Topic:** Banking **Sentiment:** bullish **Publisher:** TrendWatcher — https://www.trendwatcher.in/article/1206d8ad-9e61-4291-abcf-d68c58e19f02 RBI data shows non-food bank credit grew 15.8% in April 2026, driven by services and industry. MSME lending also surged to 23.5% in the fiscal year. 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]. ## Why it matters Non-food credit data serves as a key indicator of credit flow into various sectors of the economy, reflecting the borrowing behavior of consumers and businesses [4]. High levels of growth in this metric suggest strong demand, as businesses and consumers are willing to borrow more for investment and consumption, often signaling optimism about future income and business prospects [4]. The sharp rise ## Sources 1. Hellobanker — [RBI Data Shows Bank Credit Growth Jumps to 15.8%, Industry...](https://hellobanker.in/rbi-data-shows-bank-credit-growth-jumps-to-15-8-industry-loans-jump-15-1/) 2. Thehindu — [Non-food bank credit growth eases to 5.9%: RBI - The Hindu](https://www.thehindu.com/business/Industry/non-food-bank-credit-growth-eases-to-59-rbi/article35067469.ece) 3. Knnindia — [MSME Credit Growth Rises To 23.5% In 2025-26: RBI Annual Report](https://knnindia.co.in/news/newsdetails/msme/msme-credit-growth-rises-to-235-in-2025-26-rbi-annual-report) 4. Indiamacroindicators — [Non-Food Bank Credit | IMI](https://indiamacroindicators.co.in/economic-indicators/non-food-bank-credit) 5. Globalconsultantsreview — [Non-Food Bank Credit Growth Slowed Down To 5.9% In May...](https://www.globalconsultantsreview.com/news/nonfood-bank-credit-growth-slowed-down-to-59-in-may-suggest-rbi-data-nwid-2249.html) --- Cite as: TrendWatcher, "RBI Data: Non-Food Bank Credit Jumps To 15.8% In April", https://www.trendwatcher.in/article/1206d8ad-9e61-4291-abcf-d68c58e19f02