Top NBFCs in India: How Are They Democratizing Financial Solutions (Updated List 2022)

Looking for a list of top NBFCs in India?

Well, you came to the right place.

So, without wasting any more time, let’s jump to the basics!

Related Read: Complete Payments Infrastructure for NBFCs in India

What are NBFCs in India?

NBFCs or Non-Banking Financial Corporations are institutions that carry out financial businesses. They may be involved in offering products like lending, stocks, shares, receiving deposits, leasing, insurance, and more. 

There are 2 different types of NBFCs in India on the basis of deposits:

  1. Deposit accepting NBFCs
  2. Non-deposit accepting NBFCs

Now that we have the basics covered, let’s jump right in!

7 Best NBFCs in India: Updated List in 2022

Bajaj Finserv

Bajaj Finserv is one of the most popular NBFCs in India. Its products range from personal loans to fixed deposits. Here is a quick insight into some of its main offerings:

Personal Loans

 A personal loan is an unsecured loan. Essentially, the customer does not need to provide any collateral in order to access the loan.

Now, Bajaj Finserv is known for their fast clearance of loans. In fact, they provide instant approval to customers once they meet their basic eligibility criteria. Moreover, customers can choose to opt for Flexi Loans wherein they can pay interest-only EMIs. Furthermore, their personal loan EMI starts at 1,104/Lakh; making it accessible for all sections of the population. The loan tenure can range up to 60 months. 

In fact, Bajaj Finserve is one of the highest rated NBFCs in India for education loans.

Fixed Deposits

 Bajaj Finserv offers two options under fixed deposits. Customers can either choose to avail the Fixed Deposit option or Systematic Deposit Plan (SDP).

Under fixed deposit, they can select a lump sum amount for investment. On the other hand, under SDP, they can invest a small amount every month.

The tenor for these FDs can range from 12-60 months. They offer a 0.25% higher rate for senior citizens. Moreover, they offer the best returns on deposits going up to 7.05%.

Credit Card

They offer a Bajaj RBL bank credit card. Some of its main features are easy EMI conversion, interest-free cash withdrawal, cashback, emergency advance and numerous rewards.

Insurance and Healthcare

They offer health insurance, life insurance, saving and protection plans. Additionally, they provide travel and vehicle insurance.

In addition to this, it offers tailored financial products for SMEs and professionals. For instance, businesses loans, loans against properties, investment, gold loans and more!

Sakthi Finance

Sakthi Finance was founded in 1955. A major NBFC in South India, it specializes in financing construction equipment and commercial vehicles. 

Here is a deeper look at their offerings. 

Commercial Vehicle Financing

They offer flexible personalized financing for vehicles. Their financial products are flexible and delivered at a fast speed. Moreover, they provide financing for used as well as new commercial vehicles.

Some of their key features are minimal documentation, affordable EMIs, attractive interest rates and doorstep delivery.

Construction Equipment Financing

They also offer construction loans that are quickly disbursed. This includes registrable construction equipment like mobile cranes and JCB. 

Furthermore, Sakthi Finance offers investments options as well. They have two major categories for the same:

Non Convertible Debentures

Looking for a deposit taking NBFC in India? Shakti Finance has got you covered. Fixed-income financial instruments that they issue with the aim to garner long-term capital appreciation. In fact, this has a far higher rate of interest compared to convertible debentures.

Deposits

Sakthi Finance offers two products under this category. Fixed income scheme and cumulative income scheme. Individuals, companies, Trusts, HUFs and associations can invest in the same. Moreover, the payout can be monthly or quarterly. 

Mahindra Finance

One of the top NBFCs in India, Mahindra Finance’s offerings range from loans to insurance to investments. 

They have created custom-made financial products within these categories to answer the needs of every section of society. 

Let’s have a deeper look.

Vehicle Loans

Their vehicle loans cater to farming as well as commercial use cases. Moreover, the loan can be sanctioned within 2 days of submitting documents. Customers can select loan repayments on the basis of their cash flows. (monthly/quarterly/half-yearly, etc.)

For multi-utility vehicle loans, they use the ‘Earn and Pay’ model. The flexible repayment tenures are created on the basis of each individual case.

Furthermore, they offer car loans with 100% financing and affordable EMIs. In fact, their flexible repayment tenure has made Mahindra one of the top names in the NBFC sector in India.

In addition to this, Mahindra offers commercial vehicle loans, pre-owned loans, three-wheeler and two-wheeler loans.

Home and Personal Loans

Mahindra offers affordable home loans with flexible repayment options. Moreover, they provide door-to-door servicing. To further add to the convenience, they offer personalised assistance for documentation and loan disbursal. 

Furthermore, Mahindra’s Personal loan can help customers finance a medical emergency, wedding or travel plans, These loans provide instant approval and maximum flexibility.

SME Loans

Most SMEs face a cash crunch which can lead to disturbance with their inventory management. Mahindra provides custom financial products for resource building and inventory storage to solve such issues. Their liquidity solutions involve short-term loans and bill discounting. 

Furthermore, they provide credit and loan solutions that involve equipment financing, lease rental discounting, short term business loans, industrial project financing and more. In addition to this, they provide financial and risk management solutions as well.

Insurance

Mahindra’s diverse corporate insurance services are designed according to every customer’s needs and risk profile. They offer technical and functional competency and dedicated teams to handle portfolios. Moreover, they have one of the best coverage rates along with systems in place for technical discussion regarding admissibility of claims. 

Their insurance platform includes the following categories:

  1. Group Insurance- This includes commercial, industrial, liability, Group Cover and Corporate Insurance
  2. Reinsurance Services- Here, insurance companies can transfer their portfolio risk to reinsurers. This ensures that business operations continue undisturbed and insurers’ balance sheets are protected
  3. General Insurance- This includes health, motor and travel insurance for individuals

Investments

In terms of investments, Mahindra offers fixed deposits. Bonds and SIPs and portfolio management services. 

Muthoot Finance

Another big brand name in the NBFC sector in India, Muthoot Finance is one of the most popular gold loan NBFCs in India. However, their offerings are quite diverse and extend way beyond that. 

Loans

Starting with an offering that made Muthoot a household name: Gold Loans. Muthoot offers secured loans on gold jewellery with quick approval and disbursals. In fact, their attractive interest rates have made them the NBFC with the largest gold portfolio in India.

Furthermore, Muthoot offers housing finance loans. They have a 48-hour loan sanction feature with online account services, no hidden charges and floating rate options. Their house loans include offerings like new home loans, refinancing options, home construction and loans for NRIs. 

They also offer vehicle loans quick loan processing and minimal documentation. In fact, they are also one of the leading vehicle finance NBFC in India.

Microfinance

Muthoot is also one of the leading microfinance NBFC in India. They offer loans to micro-enterprises which aims to help women entrepreneurs and uplift the lower classes. Moreover, they offer SME and consumer loans as well.

Investments

Muthoot’s investment options include mutual funds, foreign exchange, and NCDs.

Their mutual fund schemes include equity-linked schemes that are linked to the market. This ensures high capital appreciation and returns. Furthermore, they have debt funds, tax saving schemes and balanced funds. The latter is more suited for investors with a low-risk appetite. In addition to this, they offer Systematic Investment funds and Liquid Funds.

Moreover, Muthoot offers foreign exchange services at competitive rates for customers travelling abroad. Additionally, they also offer investment services like NCDs. 

Tata Capital

While Tata Capital offers a whole range of financial services, its innovative loan products stand out the most. 

Their innovative loans against securities have made Tata Capital one of the prime examples of NBFCs in India that put customers at the centre. 

Let’s have a deeper dive.

Personal Loan

Tata Capital offers unsecured non-collateral loans at low-interest rates. In fact, their interest rates start as low as 10.99% with a 6-year tenure. To make credit more accessible to the general public, they have come up with easy eligibility criteria. 

Moreover, their multi-purpose loans charge no extra fee for pre-payment. As a result, customers can use those funds for various personal use cases. For instance, making a down payment on a new house, debt consolidation, starting small businesses and a lot more. In fact, Tata Capital is the top NBFC in India for education loans.

Home Loans

Home Loans help customers purchase or construct a house. Their home loans range from 5 lakhs to 5 crores with affordable interest rates. Moreover, customers have full control over their loan tenure, EMI period as well as the amount of loan.

Furthermore, they have custom-tailored their offerings for every section of society. In fact, they have the highest loan eligibility amongst all the NBFCs in India. 

Loans Against Property and Securities

Another similar offering is that of a loan against property. Customers can avail a loan keeping their property as collateral. 

These loans can be used for various use cases like expanding businesses or higher education. One thing that stands out is that they accept the diverse nature of property collaterals. This can range from commercial buildings to pre-owned residential properties.

Now, most people are under the impression that mutual funds are only a source of investment. But did you know that they can act as collateral for garnering further loans? Tata Capital offers loans against securities like mutual funds, bonds, equity shares and securities. In fact, they offer instant liquidity of assets.

 By availing of loans on securities, customers can continue to earn returns on it. Additionally, they get access to funds through the loan. More importantly, they charge zero prepayment fees.

Business Loans 

Every business has instances where they require urgent funds. Business owners may need funds for boosting production, digitizing operations, buying new machinery and so on. However, getting unsecured loans can be quite a hassle. Tata Capital helps customers with business loans that ensure that businesses continue smooth operations with a quick infusion of funds.

Since the pandemic, many businesses were in need of loans at are custom-tailored to suit the needs of business owners, This included extended loan tenures and well-structured EMI options. Tata Capital business loans offer all that along with minimal paperwork and swift processing.

Apart from their loan offerings, Tata Capital also offers insurance, microfinance, credit card, loan structuring, mutual funds and a lot more.

Aditya Birla Capital

Aditya Birla Capital is often ranked amongst the top 5 NBFCs in India. 

Why? Well, because its solutions cover users of every age group and social strata. In fact, they have created financial solutions ranging from investing, protection, financing and insurance. 

Here is a quick look at some of their most popular offerings.

Life Insurance

Aditya Birla offers life, health, motor and travel insurance.

Their wide range of insurance products has made them a trusted brand in India. They have curated their products to provide long term value to their customers. 

Their Term Insurance offering is a cost-effective product. By availing this, customers can access a substantial life cover while paying a nominal premium. In event of the passing of the insured, financial protection is provided to the nominee. 

Furthermore, their Endowment Plans is a type of life insurance plan where customers can avail both saving and insurance benefits. Firstly, the insured family can get access to financial protection in case of any unfortunate event. Additionally, customers can build disciplined investments over several years. It provides assured bonuses on the maturity of the plan. Moreover, it provides tax-saving benefits.

Unit Linked Insurance Plans, much like endowment plans offer bost insurance and investment opportunities. One half of the premium is invested in the capital markets. On the other hand, the remaining half is dedicated to providing insurance coverage. Customers can customize their ULIP according to their needs and decide what amount they want to allocate to either

Apart from these offerings, Aditya Birla also offers retirement, child insurance and saving plans as well.

Health Insurance

This major NBFC in India also offers one of the most comprehensive health insurance plans on the market. They go beyond premiums and coverage by incentivizing customers to stay fit and healthy. 

Moreover, they offer 100% coverage of chronic diseases, hospitalization expenses, including pre and post hospitalization expenses, modern treatment, dental, mental health hospitalization and more. 

However, what sets them apart from other NBFCs in India is their Health Returns program. It allows customers to earn upto 30% of their returns just by staying healthy. Once customers earn the rewards in the form of HealthReturns, they can use it to pay for their additional expenses. Furthermore, their Activ Health app helps customers track their daily exercise, workouts and health records. 

In addition to life and health insurance, Aditya Birla Capital offers motor and travel insurance plans as well. Incidentally, it is a leading vehicle finance NBFC in India.

Investment Solutions

As the Indian middle class is growing and more people have access to dispensable income, mutual funds are becoming quite popular. Aditya Birla offers diverse mutual fund schemes to fit into the requirements of every financial goal. For instance, a customer may be focused on wealth creation, tax saving, savings or maintaining regular income.

Moreover, customers can choose to invest in stocks and securities as well. Aditya Birla offers comprehensive portfolio management services. Resultantly, they help customers invest in thematic baskets that can be divided into large-cap, multi-cap, new age disrupter stocks and so on. 

Furthermore, customers can invest in derivatives, equities, currencies, commodities or IPOs depending on their preference and risk tolerance. 

Wealth Management Services

Aditya Birla offers a wide range of wealth management services mutual funds, digital gold, tax filing and more.

Their mutual fund schemes are divided into equity, debt, hybrid and commodity schemes. Customers can also filter and make their choices on the basis of asset management companies, scheme categories, risks as well as mutual fund plans.

Apart from that, they can invest in digital gold which gives far more flexibility than real gold purchases. Anand Birla allows customers to purchase from MMTC-PAMP. The gold is secured in certified vaults and direct ownership is transferred to the customer. The customer can choose to sell that gold at live market prices with no platform or commission fee.

L&T Financial Services

L&T Financial Services is another big name in the list of top NBFCs in India. They aim to deliver value while answering the financial need of every customer. 

Here are some of their most popular financial services.

Two Wheeler Finance

L&T is definitely one of the highest-rated vehicle finance NBFC in India. They help customers access loans for two-wheelers for their daily and commercial needs. 

Farm Equipment Finance

L&T aims to democratize credit by extending its services to the rural finance sector and supporting entrepreneurship. To this extent, they provide easy financing of agriculture equipment and tractors. 

Moreover, they offer flexible repayment terms along with attractive EMI options. Their personalised loans depend on the size of landholdings and risk profiles. 

Real Estate Finance

L&T Financial Services offers capital to developers for project construction. This helps them deliver the residential or commercial units well within their due date. They partner with builders and provide support from the under-construction to the handover stage.

Their products include Construction Finance, Lease Rental Discounting, Refinance. Inventory Funding and a lot more. 

Micro Loans and SMB Loans

Progressing its idea of helping the underbanked, L&T provides microloans for the less privileged in low-income groups. The aim is to make them self-reliant and create an environment where small businesses can flourish. They have been involved in instrumental in providing sustainable livelihood to many Indian women.

Their Small and Medium Business (SMB) Loans offer chances for SMEs to start their business operations. Moreover, this loan is open to professionals like CAs, doctors or ICWAs who want to start their own practice.

FAQs on NBFCs in India

What is the exposure limit of NBFCs in India?

RBI has fixed limits on banks’ exposure to a specific economic sector or industry. These regulatory limits dictate the banks’ exposure to those groups of borrowers so avoid any credit risks.

According to the latest guidelines issued by RBI, a bank’s exposure to a single NBFC is set at  15 per cent of its Tier I capital. However, for NBFCs of other sectors, the limit is 20% of the Tier I capital of the bank. This can be extended to 25% by permission of the bank’s board. 

What is the total number of NBFCs in India?

According to the latest reports, there were 9500+ NBFCs in India, as of January 31, 2021

Over 9000 NBFCs are non-deposit NBFC in india.

What is the status of the growth of NBFCs in India?

Between January to July 2020, the growth rate of NBFCs in India was at 20%. However, it saw a steep decline in the coming months. In September 2020, the growth rate reached 12%.

Who regulates any NBFC in India?

RBI or Reserve Bank of India controls the working and operations of any NBFC in India under the framework of the Reserve Bank of India Act, 1934 (Chapter III-B).

What are some of the upcoming NBFCs in India?

Here are some of the upcoming NBFCs in India. Some of the names mentioned are NBFC startups in India. 

  • Fullerton India Credit Company
  • LIC HFC
  • Ujjivan Small Finance Bank
  • HDFC Ltd: Housing Finance
  • Clix Capital

What is the role of NBFC in India? 

Here is a quick overview of the role that NBFCs play in India:

  1. Democratizing wealth management service
  2. Financial inclusion through products like SMB loans, microfinance, personal and vehicle loans
  3. Provides personalized financial products for every section of the society
  4. Uplifting infrastructure and creating employment opportunities

What is the future of NBFC in India?

The future of NBFCs in India is growth through digitization. 

The Indian Government is taking various steps like offline digital payments and other financial schemes to ensure that financial wellness reached the remotest part of the country. To make the best out of this situation, NBFCs will have to utilise techs like Artificial Intelligence and Machine learning. For instance, one use case is using AI to provide personalised wealth creation plans and assess credit scores. 

Can NBFCs issue debit cards?

According to RBI guidelines, NBFCs are not permitted o issue debit cards, charge cards, stored value cards, etc.