NBFCs play an important role in the Indian economy. They provide a wide range of financial services to businesses and individuals including asset finance, loan origination and servicing, investment banking, debt collection, etc.
As India’s economy continues to expand, the demand for non-banking financial services (NBFCs) is growing. Whether you’re looking for access to capital or want to invest in a company, NBFCs are the go-to option for many businesses and individuals in India.
Top 10 NBFC In India 2023
A Non-Banking Financial Company (NBFC) is an organization that provides banking and financial services without having a banking license. They provide traditional banking services like loans and deposits but are not allowed to accept demand deposits. NBFCs are regulated by the Reserve Bank of India (RBI).
What Is a Non-Banking Financial Company?
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods or providing any services and sale/purchase/construction of the immovable property.
NBFCs are financial institutions that provide various financial services and products, including loans, insurance, and asset management but do not have a banking license. Unlike banks, NBFCs do not have the authority to accept deposits from the public. However, they can accept deposits from a select group of individuals, such as directors, shareholders, and relatives.
What Are The Benefits Of Using An NBFC?
There are several benefits of using an NBFC over a bank, these include:
NBFCs can lend money to people who may not be eligible for a loan from a bank. This could be due to factors such as poor credit history or insufficient collateral.
NBFCs are often quicker and easier to deal with than banks. They may have fewer branches, but this can make them more accessible to customers.
NBFCs are not subject to Reserve Bank of India (RBI) guidelines, meaning they have more freedom to set their own lending rates. This can make them more competitive than banks.
Top 10 NBFC In India 2023
Bajaj Finance Limited
Bajaj Finance Limited offers a variety of loans including personal loans, home loans, car loans, and business loans. The company also provides credit cards, investment products, and insurance products. Bajaj Finance Limited has a wide network of branches across India and offers online banking services.
With a strong presence in both urban and rural areas, Bajaj Finserv has become a household name, synonymous with trust and reliability. This NBFC has consistently ranked among the top 10 non-banking finance companies in India and is expected to maintain its position in 2023 and beyond.
Aditya Birla Financial
Aditya Birla Financial Services includes Aditya Birla Finance Limited. It was founded in 1991 and provides exact and specialized solutions in capital markets, structured finance, corporate finance, and commercial mortgages. Aditya Birla Capital continues to expand its product portfolio, invest in digital capabilities, and enhance its customer experience to further strengthen its position as a leading NBFC in India.
Aditya Birla Capital is a prominent non-banking financial company (NBFC) in India, providing a diverse range of financial services including lending, insurance, wealth management, and asset management. The company has a strong presence across India, with over 700 branches and 135,000 distribution partners.
Tata Capital Financial Services Limited
Tata Capital Financial Services Limited is a leading Non-Banking Financial Company (NBFC) in India. The company offers a wide range of financial products and services to individuals, corporates, and SMEs.
It is a division of Tata Capital Ltd. to name one of its subsidiaries. Financial services are provided by the firm. The business provides consumer loans, wealth management services, and commercial and infrastructure financing. India’s retail, corporate, and institutional clients are all served by Tata Capital Financial Services. In Mumbai, Maharashtra, the business is located. One of India’s top ten financial institutions is this one.
L&T Finance Holdings Limited
L&T Finance Holdings Limited is one of the leading non-banking financial companies (NBFC) in India. It is a part of the Larsen & Toubro Group, one of the largest engineering and construction firms in India.
L&T Finance Holdings Limited offers a wide range of financial products and services to its customers, including loans, investments, insurance, and deposit products.
The company’s financial performance has been consistently impressive, which has earned it the respect and admiration of analysts and investors alike. L&T Finance Holdings Limited’s commitment to delivering value to its customers and shareholders, coupled with its strong financials, has contributed to its positive reputation in the market.
Muthoot Finance Ltd
India’s Kochi is home to Muthoot Finance Ltd, which was established in 1939. The Company offers loans (finance) secured by gold jewelry security. Financing and Power Generation make up the Company’s two business sectors. The company offers a range of financial services, including gold loans, microfinance, affordable housing loans, and vehicle loans.
Muthoot Fincorp operates through a network of over 3,600 branches across India, and its customer base includes over 22 lakh individuals and small businesses. The company’s commitment to customer service and innovation has helped it maintain a strong market position.
Mahindra & Mahindra Financial Services Limited
Mahindra & Mahindra Financial Services Limited is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra. It is a subsidiary of the Mahindra Group, one of India’s largest business conglomerates. The company offers a range of banking and financial products and services including deposits, loans, credit cards, insurance, investments, and wealth management.
MMFSL’s focus on serving the rural and semi-urban areas has helped it establish a loyal customer base, as it offers customized financial solutions that cater to the specific needs of its customers. Additionally, the company has placed a strong emphasis on digital initiatives to improve operational efficiency and enhance the customer experience.
Reliance Capital Limited
Reliance Capital Limited is one of the largest non-banking financial companies (NBFCs) in India. It is a part of the Reliance Group and offers a range of financial products and services to retail, corporate, and institutional customers.
Reliance Industries was created in the 1960s by Dhirubhai Ambani and Champaklal Damani. In addition to operating in the fields of energy, petrochemicals, textiles, natural resources, and retail, Reliance also owns telecommunications firms and retail locations throughout India. As of March 31, 2018, the company had total assets of Rs. 1,61,173 crore (US$ 24.4 billion) and a net worth of Rs. 14,074 crore (US$ 2.1 billion).
Magma Fincorp Limited
Magma Fincorp Limited is one of the oldest and most trusted NBFCs in India. They offer a wide range of financial services including personal loans, home loans, vehicle loans, SME loans, and agri-loans. They have a strong presence in over 25 states and 150+ districts across India.
Magma Fincorp Limited has been awarded the Best Retail NBFC at the 11th edition of the India FinTech Awards 2020.
Cholamandalam Investment and Finance Company Limited
CIFCL’s portfolio includes offerings in vehicle finance, home loans, SME loans, and corporate finance, among others. With a network of over 1,100 branches and a presence in over 400 rural locations, CIFCL has established itself as a key player in the financial services industry in India.
One of the top 10 financial services providers in India. Among the services offered by the organization are vehicle finance, house loans, business home mortgages, small and medium-sized companies (SME) loans, investment advisory services, brokerage, and a range of other financial systems.