Everything You Need to Know About the Types of NBFC In India - Loan Trivia


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Thursday 17 February 2022

Everything You Need to Know About the Types of NBFC In India

NBFC is known as a Non-Banking Financial Company, and these companies are particular financial institutions that act like banks but have numerous restrictions. The banking sector is regulated by different financial institutions governed by the Reserve Bank of India. Different types of NBFC in India are also regulated by the RBI and are responsible for financial transactions.

Types of Non-Banking Financial Companies 

According to the regulations by the Reserve bank of India, there are 8 different types of NBFC.

  • * Investment & Credit Company

This category of non-banking financial company involves numerous companies such as the asset finance company, investment companies, and even the loan company. These companies look for good credit score to function as investment opportunities for the people.

  • Infrastructure Finance Company

As the name suggests, this company deals with infrastructure planning and other investments related to it. 

  • Systemically Important Core Investment Company

Core investment company deals with essential investments such as shares, debt, stocks and more. These companies are allowed to accept public funds.

  • Infrastructure Debt Fund

These companies deal with long term infrastructure projects which will eventually help big companies and sectors.

  • - Microfinance institution
  • - Factors as types of NBFC
  • - Mortgage company in types of NBFC 
  • - Non-operative financial holding company

There are even more types of NBFC in India that operate at the ground level. These companies are functional in providing various sectors with the financial help they need without the heavy restrictions from the banks. 

Why is NBFC in India so important?

  • - These companies contribute to big infrastructure projects.
  • - It can act to gain massive profits from significant funds.
  • - They invest in massive projects with more significant risks.
  • - You don't require a good credit score for borrowing money from these companies.
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