Non-banking financial corporations (NBFCs) provide financial and banking services but are not legally designated as banks. They are regulated by the Reserve Bank of India and offer banking services such as loans, credit facilities, TFCs, retirement planning, investing, and money market stocking. These organizations play a vital role in the economy, providing services to both urban and rural areas as well as providing loans to assist new enterprises to develop or start.
NBFCs also offer a wide range of financial services, including chit-reserves and advances. As a result, it has become an important part of our economy, with NBFCs alone accounting for a 12.5 percent growth in GDP. NBFCs are preferred over banks by the majority of consumers because they are safer, more efficient, and quicker at addressing financial demands. A wide range of loan options is also available, as well as flexible and trustworthy services. Despite the fact that India has a vast number of NBFCs, here is a list of the top five currently operating NBFCs in the nation.
Tata Capital Financial Services Ltd.
The most successful non-banking financial company in India is Tata Capital Financial Services Limited. It was founded in 2007 by Tata Sons Limited as a subsidiary. TCFS bills itself as a one-stop financial services provider for retail, corporate, and institutional clients across a range of sectors. Commercial financing, infrastructure funding, wealth management, consumer loans, and the distribution and marketing of Tata Cards are just a few of the services offered by TCFS to people, families, and businesses.
Aditya Birla Finance Ltd.
Aditya Birla Finance Limited, a subsidiary of Aditya Birla Financial Services, was established in 1991 and is a quasi-financial organization that has been certified to ISO 9001:2008. ABFL is a “systemically significant non-deposit-taking NBFC” and one of India’s top five private diversified NBFCs, according to the RBI. It offers precise and tailored solutions in a number of sectors, including corporate finance, commercial mortgages, capital markets, and structured finance.
HDB Financial Services
HDFC Bank, India’s largest private bank, manages HDB Financial Services. It offers a wide range of secured and unsecured financial loans through its network of over 1,000 branches in 22 Indian states and three Union Territories. Personal and business loans, doctor’s loans, car loans, gold loans, new credit loans, enterprise business loans, consumer durables loans, construction equipment loans, new and used vehicle loans, equipment loans, and other types of loans are available. Auto loans and tractor loans are among the secured and unsecured loans accessible. The company’s two categories are lending and BPO services. It is now India’s fastest non-banking financial institution.
Muthoot Finance Ltd.
Muthoot Finance Ltd. is a company that solely lends money in return for gold jewelry. It is India’s gold lending and financial services industry, leader. Muthoot Finance Ltd. also provides foreign exchange, money transfers, investment management, travel, and tourist services in addition to financing gold transactions. Gold coins are also available for purchase at Muthoot Finance locations. The company’s headquarters are in Kerala, India, and it has over 4,500 branches around the country. Its main firm, Muthoot Housing Finance (India) Ltd., provides housing loans.
Mahindra & Mahindra Financial Services Ltd.
MMFSL (Mahindra & Mahindra Financial Services Limited) was created in 1991 and today has over 1000 offices serving over 3 million consumers across the nation. Through two affiliates, MMFSL provides insurance and financial services to rural families.Gold advances, automotive advances, business advances, housing credits, working capital advances, and a range of other services are available.
Non-banking financial companies (NBFCs) are businesses that provide financial and banking services but are not legally recognized as banks. These organizations are critical to the economy since they provide services to both urban and rural regions, as well as loans to help new businesses grow or start. The majority of customers prefer non-bank financial institutions (NBFCs) over banks because they are safer, more efficient, and faster at meeting financial needs.