Non-Banking Financial Companies (NBFC) are establishments that provide financial services and banking facilities without meeting the legal definition of a Bank. They are covered under the Banking regulations laid down by the Reserve Bank of India and provide banking services like loans, credit facilities, TFCs, retirement planning, investing and stocking in the money market. However, they are restricted from taking any form of deposits from the general public. These organizations play a crucial role in the economy, offering their services in urban as well as rural areas, mostly granting loans allowing for the growth of new ventures.
They also provide monetary services like chit-reserves and advances, hence it has become a very important part of our Gross Domestic Product and NBFCs alone count for 12.5% rise in GDP of our country. Most of the people prefer NBFC rather than banks as they feel safe and secure and provide efficient quick assistance in financial requirements. There are many loan products available and there are flexibility and transparency in their services.
From the huge list of operating NBFC, there are top 10 listed below.
Bajaj Finance Limited
- Founded in 2007
- Unit of Bajaj Holdings and Investments.
- Offers loans to doctors for career enhancement, home, gold loans, individual loans, business and entrepreneur loans and is an extremely popular finance company.
- Bajaj Finserv also provides services like wealth advisory, lending money, and general insurance.
- It has over 1400 branches across the country with more than 20000 employees.
Mahindra & Mahindra Financial Services Limited
- Established in 1991, 1000 branches, 3 million customers all over the country.
- MMFSL has two affiliates offering – Insurance services and rural housing financial services. Offer gold advances, vehicle advances, corporate advances, home credits, working capital advances and much more.
Power Finance Corporation Limited
- Founded – 1986 and is a Navratna Status company. Provide financial assistance to different power projects in the country.
- It supports organizations involved in Power generation, transmission and distribution. The company is also listed in National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Shriram Transport Finance Company Limited
- Transport Finance Company Limited focuses on funding commercial and business vehicles, besides others.
- The company was founded in 1979 and has been offering funding services for Light Duty Trucks, Heavy Duty Trucks, Mini Trucks, Passenger Vehicles, Construction Vehicles, and Farm Equipment.
- The company’s specialization is in general insurance, mutual funds, common assets, stockbroking, and general protection.
Muthoot Finance Ltd
- India’s first NBFC tracing its history back to 1888, when it began as a small lender from a village in Kerala.
- Loans only against pledge of gold ornaments.
- Offers foreign exchange services, money transfers, wealth management services, travel, and tourism services. The company has its headquarters in Kerala, India, and operates over 4,400 branches throughout the country. It is also the parent company of Muthoot Housing Finance (India) Ltd, which offers home loans.
HDB Finance Services
- Operated by India’s largest private-sector HDFC Bank.
- Offers a variety of secured and unsecured financial loans through a network of more than 1,000 branches in 22 Indian states and 3 Union Territories.
- Personal business loans, doctor’s loans, auto loans, gold loans, new to credit loans, enterprise business loans, consumer durables loans, construction equipment loans, new and used car loans, equipment loans, and tractor loans
Cholamandalam
- Incorporated in 1978 as the financial services arm of the Murugappa Group.
- Equipment financing company and has surged ahead as a complete financial services provider offering all kinds of services.
- Chola has 725 branches across India with assets under management above INR 35,000 Crores.
Tata Capital Financial Services Ltd
- Leading NBFCs, established in 2007, is a subsidiary of Tata Sons Limited.
- It is registered with RBI as ‘Systemically Important Non-Deposit Accepting Non-Banking Financial Company (NBFC)’. Among the various products offered by TCFS to individuals, families, and businesses, are commercial finance, infrastructure finance, wealth management, consumer loans and distribution and marketing of Tata Cards.
L & T Finance Limited
- L & T Finance Limited is a strong player in the nonbanking financial sector and was established in 1994.
- Headquartered in Mumbai, L & T offers funding services to different sectors like trade, industry, agriculture, Commercial Vehicle loans, Individual Vehicle loans, and corporate and rural loans. The company caters to more than 10 lakh people. In 2010, L & T was awarded the “Company of the year” in the Economic Times awards.
Aditya Birla Finance Ltd.
- Aditya Birla Finance Limited, a part of the Aditya Birla Financial Services, was incorporated in 1991 and is an ISO 9001:2008 certified NBFC.
- ABFL is registered with RBI as a ‘systemically important non-deposit accepting NBFC’ and it ranks among the top five largest private diversified NBFCs in India.
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