A Non-Banking Financial Corporation (NBFC) is a company registered under the Companies Act 2013 or 1956 that offers loans and advances, as well as buys stocks, equities, debt, and other assets issued by the government or a local government. The primary goal of this sort of organisation is to accept deposits in whatever format or method possible.

A nbfc registration is defined as a company that carries on the business of a financial institution under section 45-I (c) of the RBI Act. The Reserve Bank of India and the Ministry of Corporate Affairs are in charge of it.

NBFCs (Non-Banking Financial Companies) provide a variety of loans to individuals and businesses, such as personal loans, business loans, vehicle loans, home loans, gold loans, education loans, and loans against property. They are known for faster processing, simpler documentation, and greater flexibility compared to traditional banks. NBFCs License Registration play a crucial role in financial inclusion by extending credit to underserved sectors, including small businesses and rural borrowers. Additionally, NBFC takeovers are becoming common, where larger financial institutions or companies acquire smaller NBFCs to expand their lending portfolio, increase market presence, or diversify services. This trend strengthens the financial ecosystem and enhances access to credit across various sectors.

Edited by user Wednesday, October 16, 2024 10:55:51 AM(UTC)  | Reason: information add