What is loan company registration?
Loan company is a type of Non-Banking, Financial Company. As the names suggest, Loan company is a financial institution carrying on the business principle of providing finance by way of loan or advance for supporting the activities other than its own. It provides aid to loans and financial assistance related needs in a transparent and speedy manner. Loan company is registered as a Non-Banking, Financial Company under Companies Act, 2013. Loan company raises funds from the public, and lend them to ultimate spenders. These companies advance loans to the small-scale industries, various wholesale and retail traders and others who need financial assistance. Loan companies are being recognized as complementary to banks due to their attractive rates of return on deposits, simplified procedure and meeting the credit need timely.
Registration Process of Loan company -NBFC
A loan company is a Non-Banking Financial company which is registered under the Companies Act, 2013 with an Authorized Capital of 200 Lakh. It can be registered either as a Private Limited Company or as a Public Limited Company.
As per the RBI Act, a non-banking financial company is defined as: –
a financial institution which is a company; ·
A non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner;
such other non-banking institution or class of such institutions, as the bank may, with the previous approval of the Central Government and by notification in the Official Gazette
Procedure for Loan company registration
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