Tripura Has Emerged as Leader in NBFC Penetration: Exposing Gaps in Banking Services

By Our Correspondent

Agartala, October 22, 2025

Tripura has emerged as the frontrunner among the northeastern states in terms of Non-Banking Financial Company (NBFC) loan penetration, according to the recently released Bharat Microfinance Report 2025. This development has indicated a possible malfunctioning or inefficiency in the formal banking system of the state.

The report has shown that Tripura has recorded a 15.93 percent share of loan accounts in NBFCs the highest in the northeast. It has also posted a Loan Account Penetration Ratio of 6.28, meaning there is one NBFC loan account for every six residents.

In contrast, other northeastern states have reported lower NBFC penetration. In Assam the penetration ratio of 14.10 means one account per 14 people followed by Sikkim: 17.58, Nagaland: 108.52 means one account per 109 people.

While Tripura has led the region, the report has highlighted stark disparities across the northeast. States such as Manipur, Meghalaya, and Arunachal Pradesh have continued to show limited NBFC outreach, with penetration ratios above 45 suggesting one loan account per 45 or more people.

Observers and local citizens have raised concerns about the underlying causes of Tripura’s high dependence on NBFCs. Several have pointed to issues in accessing loan services from traditional banks. Loan applicants have often faced delays, strict procedures, and lack of responsiveness under various government and private lending schemes. "The banking officials have needed to reassess their services, particularly in delivering loans under different schemes meant for the welfare of the public," a resident commented.

Despite the higher interest rates associated with NBFCs, people in Tripura have preferred them due to simpler and quicker loan procedures. “The system to obtain loans from NBFCs has been easier than from banks, which is why people have shown more interest in approaching NBFCs,” said Kiran Bhowmik, a Ph.D. scholar in the Department of Economics, Tripura University.

However, concerns regarding regulation and transparency in the NBFC sector have been growing. Beneficiaries have reported that there is no documentation or authorized letter of NBFC institutions in many office complexes. “There is no proper record of active NBFC institutions in the state, and no standard guidelines exist for their operations,” one beneficiary said.

Stakeholders have urged the authorities to step in and have called for clear regulations, proper monitoring, and standardization of services provided by NBFCs. “The government should come forward with proper rules and a regulatory framework for the benefit of Tripura and its people,” the beneficiaries added.

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