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 banks. These institutions…
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 recent adoption…
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 financial activities by…
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 whose needs could…
Introduction
With the increasing demand for credit in India, the growth of Non-Banking Financial Companies (NBFCs) is at an all-time high. The registration of NBFCs is a complicated process, so the takeover of an already RBI-registered NBFC has become a preferred way to enter into or expand the company.
Since the Reserve Bank of India…
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 submit applications in…
Micro-financing has played a key role in the rapid economic growth of India. Its contribution has been immense. Private finance companies have made financial assistance within reach of rural youth and women. Private lending has changed the economic ecosystem of the nation for the better. There are hundreds of NBFC establishments in India, and we…
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 individual must submit…
Have you heard of this quote, "If you deprive yourself of outsourcing and your competitors do not, you're putting yourself out of business"? A very famous one by Lee Kuan Yew, 1st Prime Minister of the global financial center, Singapore.
In this digital era, when every other job has become virtual and can be outsourced,…
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 they work, this…
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 than a bank…
Co-lending, also known as co-origination, is a system in which banks and non-banking financial companies collaborate to provide credit to the priority sector participants. Under this arrangement, banks and NBFCs share risk in an 80:20 ratio (80 % of the loan with the bank and a minimum of 20% with the non-banks).
The Reserve Bank…