Smartphone financing to account for 42% of sales in India
What's the story
Smartphone financing is set to dominate in India, accounting for 42% of all sales this year. The figure is a significant jump from the 35% recorded in 2025, according to Counterpoint Research. The increase is mainly due to rising handset prices that are pushing consumers away from upfront payments. Non-banking financial companies (NBFCs) currently dominate this space, accounting for about 67% of all financed smartphone sales.
Market leaders
NBFCs lead the charge
The Monthly Smartphone Financing Tracker for May 2026 by Counterpoint Research shows that NBFCs are leading the smartphone financing ecosystem. Their dominance is driven by demand from Tier-2 and 3 cities, where traditional bank-led EMI schemes aren't easily accessible. This trend highlights a growing shift toward alternative financing methods in India's evolving smartphone market.
Future trends
Financing options to drive festive season sales
As smartphone brands continue to raise prices across segments, financing options are expected to drive sales during the upcoming festive season. Counterpoint Research's Tarun Pathak said, "We expect the coming festive season to be driven by these financing options, along with upfront discounts." The trend is likely to be more pronounced in offline-focused brands like Samsung, Vivo, and OPPO that have higher financing penetration due to their customers' preference for in-person assistance while evaluating such schemes.
Consumer concerns
Hidden charges a concern for consumers
Despite the growing popularity of financing options, hidden charges and unclear terms and conditions continue to be major deterrents for buyers. This was revealed in a recent consumer survey conducted by Counterpoint Research. The findings underscore the need for greater transparency from financing providers to win over potential customers in India's competitive smartphone market.
Top players
Premiumization on the cards
Bajaj Finance and TVS Credit are the top players in the NBFC segment, according to Counterpoint Research. The report also predicts that financing will play an even bigger role in the smartphone market as brands adopt long-tenure EMIs, exchange offers, and affordability programs to keep up demand. This trend could also accelerate premiumization by making higher-priced smartphones accessible to a larger consumer base.