India’s securitisation market recorded a steady but moderate expansion in FY2026, with total volumes reaching ₹2.5 trillion, according to ICRA Limited. The growth, though limited at 4% year-on-year, was primarily driven by strong participation from retail-focused non-banking financial companies (NBFCs), even as banks maintained a subdued presence.
Industry experts note that NBFCs have increasingly relied on securitisation as a key funding tool, particularly in a cautious operating environment marked by liquidity considerations and evolving credit dynamics. Retail NBFCs, in particular, emerged as the backbone of the market, registering a robust 26% rise in securitisation volumes during the fiscal.
Commenting on the trend, Manushree Saggar, Senior Vice President & Group Head, Structured Finance, ICRA Limited, said:
“In line with ICRA’s estimates, securitisation volumes reached Rs. 2.5 trillion in FY2026, driven by sustained participation from retail NBFCs, while contribution from banks remained largely muted. Though the overall securitisation volume growth was small at 4% in FY2026, securitisation volumes of retail non-banks rose by a robust 26%. ICRA expects NBFCs to remain growth drivers, going forward as well.
As for asset classes, loan securitisation by microfinance lenders witnessed a good recovery in FY2026 while the share of other key asset classes, including commercial vehicles and mortgage loans, remained range-bound vis-à-vis FY2025. Even though the operating environment remains cautious, NBFCs are expected to continue with the growth momentum in FY2027 and securitisation would remain an important tool for meeting incremental funding requirements. In this backdrop, ICRA expects retail securitisation volumes to grow by 15-20% in FY2027.”
The recovery in microfinance loan securitisation emerged as a notable highlight during the year, signaling improved credit appetite and stabilization in borrower segments that had previously faced stress. Meanwhile, asset classes such as commercial vehicle loans and mortgage-backed portfolios remained relatively stable compared to the previous fiscal.
Looking ahead, the outlook for FY2027 remains optimistic. Analysts expect NBFCs to continue leveraging securitisation markets to diversify funding sources and manage balance sheets efficiently. With anticipated growth of 15–20% in retail securitisation volumes, the segment is poised to remain a critical pillar of India’s structured finance landscape.
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