NBFC — Non-Banking Financial Companies: Complete 101 Guide
NBFC — Non-Banking Financial Companies: Complete 101 Guide Last updated: March 2026 What is an NBFC? NBFCs (Non-Banking Financial Companies) are financial institutions that provide banking-like services without holding a banking license. They play a crucial role in financial inclusion. Types of NBFCs Category Activities Asset Finance Vehicle, equipment loans Loan Company Personal, business loans Investment Securities, mutual funds Infrastructure Finance Project loans Microfinance Small business loans How NBFCs Work Registration Minimum ₹2 crore capital (some categories) RBI registration mandatory Compliance with RBI directives Lending Process Customer application Credit assessment Risk-based pricing Loan disbursement Repayment collection NBFC vs Banks Feature NBFC Bank Acceptance of deposits Limited Full RBI regulation Yes Yes Credit creation Yes Yes Deposit insurance No Yes ( DICGC) Consumer Rights Transparent interest rates Fair practices code compliance Grievance redressal mechanism Credit information accuracy No hidden charges disclosure