With competition intensifying, some players worry that the tactics and unsavoury practices of some newcomers might show the industry in a negative light.
"They are very aggressive in opening more and more branches, but if they don't have an effective risk management mechanism within, then it is a problem for them, which will be bad for the industry," said VP Nandakumar, chairman of Manappuram.
Growth of organised operators could, however, raise standards in a sector still dominated by unregulated players.
Some analysts say pure-play operators are best poised to compete given their extensive branch networks, established reputations, risk management expertise - including appraisal and security - and the ability to grow quickly.
Banks enjoy customer trust, but have higher cost structures and regulatory limits on expansion.
Muthoot Finance, by comparison, was able to add more than 1,000 branches in less than a year, to 2,611 at the end of February.
"Our assessment is that it is not very easy to replicate operations overnight," said Ambit analyst Krishnan ASV.
"Anybody can have aspirations for lending against gold, but it's going to be very difficult for an NBFC that is not already in this business to learn the ropes very quickly or to build a book rapidly without making mistakes," he said.