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A Non-Banking Financial Company (NBFC) is a financial institution that provides financial services but does not accept public deposits and is regulated by the Reserve Bank of India (RBI). In recent years, Non-Banking Financial Companies (NBFCs) have emerged as vital players in the financial landscape, serving as an alternative to traditional…
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The NBFC sector has undergone a significant transformation in the lending landscape with the advent of digitalization. Automation has revolutionized various aspects of NBFC operations, such as customer acquisition and verification. However, the credit risk underwriting process, which determines the borrower's creditworthiness, is still heavily reliant on manual assessment in many NBFCs.…
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Non-Banking Financial Companies (NBFCs) have been crucial in helping large numbers of people whose financial requirements have gone unmet or inadequately met by financial institutions. They have shifted their attention to specialized target consumers with cutting-edge and customized products due to recent regulations and a rise in the cost of lending.
The…
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Introduction
A non-Banking Financial Company (NBFC) is an entity that is very similar to banks and offers bank-like services. It provides loans and advances, engages in the acquisition of shares/bonds/debentures/etc., and offers services like hire/purchase, leasing, and insurance, among others.
According to RBI, an NBFC license is required to commence the aforesaid…
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NBFCs are your go-to option when you need urgent cash to fulfill a myriad of needs. This is particularly true when you are looking for a loan with a not-so-good credit score.
NBFCs came into existence in the 1960s in India and soon became a great alternative for individuals and businesses…
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India’s economic growth has been exceptional in the past few years. It can be easily attributed to the microfinance companies in India whose immense contribution fueled this rapid growth.
Microfinance companies have been instrumental in attenuating poverty by uplifting the poor, particularly women and the youth, in rural areas. The microfinance sector…
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The contemporary lending environment is going through a paradigm shift. It is way better than the traditional lending process finance and loan companies used to follow. All thanks to rapid digitalization that has eliminated inconveniences that bothered both lenders and borrowers in equal measures.
Conventional ways of lending required the borrowers to…
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Introduction
Why do we need NBFC when we have Banks?
Let's take a quick example - Why do we need Jio, Airtel, Idea, and others when we have BSNL? The same goes here. Every bank in India provides specific bundles of financial services, while their primary activity is lending. For example, an…
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The financial sector is quite difficult to get a grasp on. Owing to a myriad of sectors that have different norms, it becomes a bit cumbersome to make the right decisions. The laws for banks and NFBCs are quite different. If you have also wondered what non-banking financial institutions are and how…
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Banks and non-banking financial institutions are the most vital financial institutions that not only fulfill the financial needs of individuals and businesses but also have a significant impact on the economy.
If you have always wondered how non-banking financial companies differ from banks, know that you aren’t alone. NBFCs are way different…
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Gone were the days when blockchain technology was only associated with cryptocurrency. Now, many industries, like healthcare, insurance, logistics, medicine, entertainment, etc., are trying to harness the advantages of this new and evolving technology, and fintech, as an evolving industry that entirely depends on technology, does not want to lag in any…
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Introduction
The Reserve Bank of India often issues master directions and notifications regarding the working of NBFCs. Hence, it helps NBFC adhere to the public interest and safeguards itself when borrowers fail to repay and restore their financial assets in the event of the same.
Thus, it includes the recovery of NPAs, and the…