The full form of NBFC is a non-banking finance company. NBFCs have emerged as a vital part of the Indian financial system. There has been consistent NBFC growth in India, primarily owing to their ease of operations and offering user’s benefits.
Let’s take a quick look at them in this short read!
What are the different types of NBFC in India?
NBFCs are categorized in India under two headings:
- On the nature of their activities, and
- On the basis of deposits.
What are different types of NBFC in India based on their activities?
- Asset Finance Company.
- Loan Company.
- Investment Company.
- Mortgage Guarantee Company.
- Infrastructure Finance Company.
- Core Investment Company.
- Micro Finance Company.
- Housing Finance Company.
What are the different types of NBFC in India on the basis of deposits?
- Deposit accepting NBFCs.
- Companies that do not take deposits.
What parameters to meet to acquire an NBFC certificate?
If anyone wishes to incorporate an NBFC, he needs to fulfil a few conditions, such as:
- The company needs to be registered under the Companies Act of 1956. It should either be a Limited Company or a Private Limited Company.
- The minimum net owned funds of the company that you want to register as an NBFC must be at least Rs.2 crore. Net owned funds are money available with a company after deducting reserves and intangible assets. These need to be deducted from its total owned fund.
The features of NBFCs are unique.
Applying for a loan with an NBFC involves faster processing compared to a bank’s offerings.