The role of Non-Banking Financial Companies in India is impressive in the country’s financial ecosystem; specialized financial services offered by NBFCs complement the traditional banking sector.
The wide range of services offered by them includes personal loans, asset financing, microfinance, and infrastructure funding, thus filling gaps in financial access, especially in rural and underserved areas.
In this blog post, we will tell you all about the top 22 NBFC examples; we are going to discuss them in great detail so that all of you can get as much information about NBFC as possible; let’s start this without any delay in this blog post.
What is the NBFC?
A non-banking financial company is a financial institution that provides various banking-related services but does not have a banking license. Unlike traditional banks, NBFCs do not accept demand deposits (savings accounts or checking accounts), but they still provide services such as lending, asset finance, investments, and microfinance.
To pursue this role, NBFCs provide loans to individuals, small businesses, and rural areas where traditional banks do not have as much reach. The Reserve Bank of India regulates NBFCs and governs their activities with specific financial regulations to ensure soundness and transparency in their operations.
What is the NBFC Act?
The “NBFC Act” is an umbrella that covers the regulatory framework governing NBFCs in India, as framed by the RBI under the Reserve Bank of India Act, 1934.
Under Section 45-IA of the aforesaid Act, any company that intends to start its business operations as an NBFC must register with the RBI and also comply with specific financial parameters, such as maintaining a minimum net owned fund.
What are the Top 22 NBFC Examples?
We have mentioned all the names of the top 22 NBFC examples below in a very concise manner, along with which we have also explained all the details of those examples below:
- Bajaj Finance
- Mahindra & Mahindra Financial Services Limited
- Muthoot Finance
- Shriram Finance
- L&T Finance
- Aditya Birla Finance
- Cholamandalam Investment and Finance Company Limited
- LIC Housing Finance
- Tata Capital LimitedÂ
- Manappuram Finance
- Sundaram Finance Ltd.
- Piramal Capital and Housing Finance Limited
- Federal Bank and Canara Bank
- Edelweiss Financial Services Ltd
- ICICI Bank
- Power Finance Corporation Limited
- CreditAccess Grameen Limited
- IIFL Finance
- Shriram Transport Finance Company
- HDB Financial Services
- Mahindra Finance
- HDFC
Bajaj Finance
Bajaj Finance is one of the top NBFCs specializing in asset financing, consumer finance and wealth management. Bajaj Finance offers innovative products blended with a customer-centric approach. Bajaj Finance offers a wide range of loan options for personal, home loans and business loans in addition to providing loans against consumer goods.
Reduced Tax Evasion is the 1st example among the top 22 NBFC Examples And also a very important one.
Mahindra & Mahindra Financial Services Limited
Mahindra Finance focuses solely on rural and semi-urban financing, offering specific products for customers in those areas. Services include vehicle financing, tractor financing, SME financing and personal loans – all of which support economic development in India’s rural areas by providing a source of credit.
Mahindra & Mahindra Financial Services Limited is the 2nd example among the top 22 NBFC Examples And also a very important one.
Muthoot Finance
Muthoot Finance is one of the largest gold loan providers in India. It offers easy and quick loans against gold jewellery, and for this reason, it is a favourite among people looking for short-term loans. Muthoot Finance is well established across India, especially in the southern states, and offers hassle-free services to customers.
Muthoot Finance is the 3rd example among the top 22 NBFC Examples And also a very important one.
Shriram Finance
Shriram Finance is an asset-backed financier that primarily deals with commercial vehicle finance and small enterprise finance. It specializes in two-wheeler financing, personal loans, and commercial vehicle finance, catering to the needs of self-employed individuals or small business owners across India.
Shriram Finance is the 4th example among the top 22 NBFC Examples And also a very important one.
L&T Finance
L&T Finance offers a comprehensive portfolio of financial products, ranging from infrastructure finance to real estate and corporate loans. The company focuses primarily on the infrastructure sector, raising investments for major projects in transportation, energy and urban development.
L&T Finance is the 5th example among the top 22 NBFC Examples And also a very important one.
Aditya Birla Finance
Aditya Birla Finance offers diverse financial solutions such as personal loans, SME loans and structured finance. Known for its robust credit assessment framework, the company serves individuals, SMEs and corporates and offers customized solutions to meet varying needs.
Aditya Birla Finance is the 6th example among the top 22 NBFC Examples And also a very important one.
Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment & Finance is into vehicle finance, home loans and small business loans. It has a strong presence in semi-urban and rural areas, where it adopts strategies to help its customers acquire assets ranging from commercial vehicles, agricultural equipment and homes.
Cholamandalam Investment and Finance Company Limited is the 7th example among the top 22 NBFC Examples And also a very important one.
LIC Housing Finance
A subsidiary of LIC, LIC Housing Finance offers home loans and financing solutions related to housing projects. It is one of India’s leading mortgage loan providers, offering competitive rates and flexible loan options for residential and commercial properties.
LIC Housing Finance is the 8th example among the top 22 NBFC Examples And also a very important one.
Tata Capital LimitedÂ
Tata Capital Limited offers a wide range of financial services, from personal loans to home loans, business loans and wealth management. With an emphasis on ethics and customer satisfaction, Tata Capital is one of the most trusted names in India’s NBFC sector.
Tata Capital Limited is the 9th example among the top 22 NBFC Examples And also a very important one.
Manappuram Finance
Manappuram Finance is a leading gold loan company having a significant presence in rural and urban areas. The company offers fast gold loans and also deals in vehicle loans, housing finance and microfinance products for diverse customer needs.
Manappuram Finance is the 10th example among the top 22 NBFC Examples And also a very important one.
Sundaram Finance Ltd.
Sundaram Finance is involved in home loans, corporate finance and asset management in addition to commercial vehicle financing. The company has a strong reputation for supporting entrepreneurs, especially in the transportation business, through financing fleet expansion and operational expansion.
Sundaram Finance Ltd. is the 11th example among the top 22 NBFC Examples And also a very important one.
Piramal Capital and Housing Finance Limited
Piramal Capital and Housing Finance offers mortgage financing, real estate loans and corporate finance. As a firm with a particular interest in real estate financing, the company provides assistance to developers and individuals through funding for housing and infrastructure projects.
Piramal Capital and Housing Finance Limited is the 12th example among the top 22 NBFC Examples And also a very important one.
Federal Bank and Canara Bank
Although primarily banks, Federal and Canara Bank have powerful NBFC arms that offer a variety of non-banking financial services. Federal and Canara Bank’s NBFCs focus mainly on asset management, mutual funds, and investment banking, with a relatively broad distribution of customer needs.\
Federal Bank and Canara Bank is the 13th example among the top 22 NBFC Examples And also a very important one.
Edelweiss Financial Services Ltd
Edelweiss Financial Services is a diversified financial services firm that offers asset management, credit, insurance, and wealth management services. Serving clients across individual, institutional, and business segments with its range of products makes Edelweiss Financial Services a diversified NBFC in India.
Edelweiss Financial Services Ltd is the 14th example among the top 22 NBFC Examples And also a very important one.
ICICI Bank
ICICI Bank may be primarily considered a bank, but there is a significant NBFC division of the bank that offers asset management, investment banking, and mutual fund management. Both retail and institutional investors can benefit from the services provided by the NBFC arm of ICICI Bank.
ICICI Bank is the 15th example among the top 22 NBFC Examples And also a very important one.
Power Finance Corporation Limited
Power Finance Corporation Limited is engaged in the infrastructure finance industry and, more specifically, in power infrastructure finance. It provides financial assistance for the generation, transmission and distribution of electricity. Thus, it is a vital part of India’s energy infrastructure.
Power Finance Corporation Limited is the 16th example among the top 22 NBFC Examples And also a very important one.
CreditAccess Grameen Limited
CreditAccess Grameen is a microfinance institution that provides minimum credit to low-income and disadvantaged groups, primarily women. It aims to achieve financial inclusion through income-generating microloans.
CreditAccess Grameen Limited is the 17th example among the top 22 NBFC Examples And also a very important one.
IIFL Finance
IIFL Finance offers personal loans, home loans, gold loans, and business loans to serve individual and corporate customers. The highlight of IIFL is its digital lending platform, which claims to offer fast and convenient loan solutions, so it is in great demand among customers who want quick financing options.
IIFL Finance is the 18th example among the top 22 NBFC Examples And also a very important one.
Shriram Transport Finance Company
Shriram Transport Finance Company specializes in financing used commercial vehicles. Drivers, small entrepreneurs, and fleet operators can easily purchase and maintain commercial vehicles with the company’s services.
Shriram Transport Finance Company is the 19th example among the top 22 NBFC Examples And also a very important one.
HDB Financial Services
HDB Financial Services is a subsidiary of HDFC Bank that offers consumer finance, business loans, and asset-backed loans. HDB Financial Services competes through competitive loan products to serve both individual and business customers across India.
HDB Financial Services is the 20th example among the top 22 NBFC Examples And also a very important one.
Mahindra Finance
Mahindra Finance has a significant presence in both rural and semi-urban areas. The company offers loans for agricultural equipment, commercial vehicles and personal finance. Mahindra Finance is a company that seeks to develop the rural economy by lending to income-producing assets.
Mahindra Finance is the 21st example among the top 22 NBFC Examples And also a very important one.
HDFC
HDFC is a leading housing finance institution in India. The group offers home loans, property loans and educational loans, which help individuals and families become homeowners and pursue higher education.
HDFC is the 22nd example among the top 22 NBFC Examples And also a very important one.
What are the Types of NBFC?
Non-Banking Financial Companies (NBFCs) offer banking-like services without being banks. They include Asset Finance Companies, Loan Companies, Investment Companies, and more. Learn about all types in detail here: Read the Full Blog Post.
In Conclusion
NBFCs play an indispensable role in India’s financial ecosystem by meeting diverse financial needs, especially in segments where traditional banks might have limited reach.
They are deeply involved in microfinance and infrastructure finance, which directly contributes to the country’s goals of financial inclusion and economic growth.
Their activities are spread across urban and rural areas, covering a wide range of financial products and services for the Indian economy.
FAQs
Q1. Is Paytm a NBFC?
No, Paytm is not an NBFC, but it has other subsidiaries, like Paytm Payments Bank under it, which have taken the services of an NBFC. Similarly, other subsidiaries can also avail of loans and credit facilities through NBFCs.
Q2. Which is the No. 1 NBFC in India?
Bajaj Finance is the number one NBFC in India, mainly due to its diversity of services, strong financial performance, and customer-centric approach.
Q3. Is Nabard a NBFC?
No, NABARD (National Bank for Agriculture and Rural Development) is not an NBFC. It is a development bank set up to finance and support agriculture, rural development, and infrastructure projects.
Q4. Is NBFC a Fintech company?
No, NBFCs (non-banking financial companies) and fintech companies are different. NBFCs are only interested in providing financial services, while fintech companies use technology to innovate in the financial sector. Most of them partner with NBFCs or even banks.
Q5. What is the complete form of MFI?
MFIs are called microfinance institutions. It provides small loans and financial services to low-income individuals and small businesses, thereby supporting financial inclusion.
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