NBFC Registration

Non-banking financial corporations (NBFC) are fast emerging as an important segment of the rapidly-growing Indian economy. This website is about NBFC Registration in India. NBFC offers almost every service that banks do including performing financial intermediation, offering loans, accepting deposits, giving cash advances, leasing, hiring purchase, etc.

Due to a lack of banking institutions in many areas and increasing demand for loans NBFC more and more people are able to have a profitable business in the India than ever before.

NBFC can raise funds from the public, directly or indirectly, and can freely lend them to ultimate spenders. The minimum tenure to accept deposits is 12 months (1 year), and the maximum period consists of 60 months (5 years). NBFC advance loans to the various small, wholesale, and retail traders as well as self-employed persons. NBFC is very popular due to attractive interest rates on the investors’ deposits.

The working and operating of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act. Section 45-IA provides that no NBFC shall commence or carry on the business of a Non- Banking Financial Institution without obtaining a Certificate of Registration which can only be issued by the Reserve Bank of India.

NBFC has advantages in terms of short-term lending, High ROI, and No Cap on Interests. So, if you are interested in starting an NBFC, this post has the information needed.

Differences Between NBFC & A Bank:

The functions of the NBFCs look very similar to those of the bank as they lend money and make investments. However, there are many differences:

NBFC cannot accept demand deposits
NBFC cannot issue checks drawn on itself
Deposit Insurance Facility of DICGC (Subsidiary of RBI) is not available to depositors of NBFC

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You can register NBFC in 90-120 days.

This has to be considered on the basis of business objectives. Contact our Advisor.

Deposit NBFCs can take the deposit from the public, Non-Deposit can not.

Micro FInance is a type of NBFC catering needs of Micro-Lending in Urban and Poor Sector as reasonable prices.

We are available to take all your NBFC Queries!

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Our Advisors can help in resolving all your NBFC related Queries. We have 15+ Years Experience in managing NBFCs.