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Non-banking financial companies are financial institutions that offer various banking services. Such firms do not have a banking license. NBFCs offer services such as retirement planning, loans and credit facilities, money markets, etc. These companies are not allowed to take deposits from the public. Thus, it keeps them out of the scope of traditional oversight required under banking regulations. It does not include primary businesses such as agriculture, industrial related activities, sale and purchase of items, etc. NBFCs helps the bank by providing infrastructure for allocating over sufficient resources to companies and individuals with deficits.

NBFC Companies in Delhi

The introduction of NBFCs in the current market has benefitted entrepreneurs all around the globe in general and India in particular. Financing is an imperative part for a business organisation in order to be successful in the long run. Whether you have a start-up firm or an established commercial entity, raising capital can be an extremely delicate process. NBFC Companies in Delhi not only support such institutions but also provides financial consultancy.

Commercial funding is just one of the segments which NBFCs cater to. Such financial firms are also assisting students with all new schemes related to education loans. The idea of coupling loans for skill development along with the traditional education loans is changing the entire landscape of the financial industry which is currently existing in the Indian market. Aspiring students can now learn from professional courses that helps them to develop a certain skill set that can be practically applied on a particular job scenario. The opportunities have become limitless as the interest that is applicable on such loans are charged on a very low rate. In order to get a better understanding of the operations of NBFCs, the regulations under which such companies function have been listed below.

NBFC regulations

 

  • The company must be registered as a public or private limited company.
  • The company must have a minimum of two crore net owned fund.
  • Public deposit acceptance limit may uniform to 1.5 times of net owned fund(NOF).
  • Credit and investments concentration norm AFCs.
  • Off-site reporting.
  • The constitutions of 3 board committees have now been made applicable to all NBFCs.
  • Provisioning for standard assets.

NBFC vs. Banks

NBFCs can make investments. They don’t accept demand deposits. It ensures necessary loan processing is quicker. Borrowers still prefer to take loans from NBFCs as it is easier and less complicated than banks. NBFCs often provide less interest rates which is the primary reason that it is chosen over banks. Individuals with poor credit rating will generally not be given loans from banks. The reason for this is banks consider borrowers with high credit score.  Most of the corporate sector prefer banks while the detail sectors chose NBFCs. Simple loans such as vehicle financing loans, gold loans, and home loans are offered by NBFCs. RBI monitors the day to day operations of this NBFC so that no fraudulent cases are recorded.

Therefore, if you wish to apply for loan in an NBFC, you can google List of Nbfc Companies in Delhi, and get an idea which company you should go and apply for a loan.