Crisil Ratings projects that the share of bank loans in the funding mix of non-banking financial companies (NBFCs) will increase to 44-45% by FY27, up from 43% in the latter half of FY26. This rise is driven by a decline in bank lending rates and the increasing cost of bond issuances, which have seen yields rise after a brief decline. In the second half of FY26, NBFCs experienced a net increase of about ₹2.5 trillion in bank loans, contrasting with a ₹0.2 trillion decrease in the previous period. Securitisation also saw a significant uptick, with volumes rising 30% to around ₹1.3 trillion, providing a vital funding avenue for smaller NBFCs. However, geopolitical uncertainties are projected to keep external commercial borrowings (ECBs) subdued in the near term. Crisil Ratings emphasizes that diversification of funding sources will be essential for NBFCs to maintain liquidity and manage costs effectively in a fluctuating macroeconomic landscape.