New Delhi, Sept. 23 -- Non-banking finance companies (NBFCs) are seeing healthy loan demand and resilient asset quality in the September quarter so far, but a possible rise in interest rates could push up their funding costs, according to a Jefferies report.

The report, based on discussions with nine NBFCs at the Jefferies India Forum 2026, said demand remained strong across key lending segments and early festive-season trends were encouraging. However, the timing of major festivals could affect September-quarter trends.

"Strong 2Q growth and asset quality trends" were seen across the sector, with most NBFCs reporting stable asset quality even during the seasonally weaker September quarter, the report said. Jefferies also noted that cre...