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A Quick Look at Different Types of NBFC in India

· NBFC personal loan,types of loan

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. 

NBFCs are regulated by the Reserve Bank of India (RBI). The RBI has the authority to keep a check on different types of NBFC in India. There are various types of NBFC in India. 

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: 

  1. The company needs to be registered under the Companies Act of 1956. It should either be a Limited Company or a Private Limited Company. 
  2. 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. 

It offers a considerable small personal loan amount with less stringent eligibility terms. They also provide faster approvals and money disbursements, even online calculators. 

Applying for a loan with an NBFC involves faster processing compared to a bank’s offerings.  

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