Non-Banking Finance Companies (NBFCs) are organizations that provide services such as loans and advances. They are different from banks as they don’t offer savings accounts and operate by a distinct set of rules and regulations.
There are several different types of NBFCs in India that emerged as bank alternatives for those who want quick access to funds. These companies often help meet credit demands not fulfilled by banks which is why they are gaining popularity. Some of the simple reasons behind the growth of NBFCs in India are quick sanctions, simple terms, easy repayment structures, and more. Types of NBFCs in India There are two primary types of NBFCs in India. Deposit-Accepting Such financial companies accept deposits from the public. They are investment companies or asset management companies or others. Non-Deposit Accepting These NBFCs are companies that don’t accept deposits from users. They can only lend money and accept repayments. What are the Roles of NBFCs? NBFCs often offer customized products and solutions to meet the varying needs of users. This way, they play an important role in promoting the nation’s growth. You can use online tools to understand how lenders calculate interest payments. The compound interest rate formula is applied to give you the total repayment amount and EMI payment. NBFCs are blessings for new businesses with no credit history and individuals with a low credit score. They help create employment, thus playing a role in the country’s development. They also help build financial strength by lending to Micro, Small and Medium-scale businesses. List of Top NBFCs in India in 2022 There is a large number of Non-banking financial companies already active in India. Here are some of the top players in the industry.
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |