The Top 10 NBFCs in India, 2024 – NBFCs (Non-Banking Financial Companies) are those companies that offer banking amenities without a bank permit. NBFC unlike banks have fewer restrictions. NBFCs assume an essential part of the nation’s economy by providing financial services to the unbanked masses. They provide various services such as advances, insurance, and many more. The NBFCs contribute to GDP growth, which is growing rapidly and presently at over 12% of the nation’s GDP. NBFC additionally adds to the nation’s economy by providing loans to structured ventures. This post presents The Top 10 NBFCs in India, 2024.
List Of The Top 10 NBFCs in India, 2024
#1. Mahindra & Mahindra Financial Services Limited
Mahindra & Mahindra Financial Services Limited (MMFSL), popular as Mahindra Finance, is an excellent non-banking financial company (NBFC) in India. Mahindra Finance has a huge network of branches and customer touchpoints all across India, with a strong appearance in rustic and semi-urban areas.
#2. Piramal Capital and Housing Finance Limited (PCHFL)
Piramal Capital and Housing Finance Limited (PCHFL) is a leading financial services organization in India that works as a non-banking financial company (NBFC) and a housing finance company (HFC). It is a branch of Piramal Enterprises Limited, part of the Piramal Group, which has different interests in pharma products, financial services, and real estate. Also, PCHFL is a part of the Piramal Group, started by Ajay Piramal. Throughout the years, the group has progressed growing and diversified into many sectors including real estate, healthcare, and financial services.
#3. Ujjivan Small Finance Bank (USFB)
Ujjivan Small Finance Bank is a famous small finance bank in India, which offers financial facilities to investors and borrowers from a specific part of the population. It was started to further distance the financial inclusion work of the Government of India and to cater to people who are not easily available via traditional financial logistics facilities.
#4. Tata Capital Financial Services Limited (TCFSL)
Tata Capital Financial Services Limited (TCFSL) is a famous non-banking financial company (NBFC) in India and is a segment of the Tata Group, one of India’s biggest and most reputed unions. Tata Capital Financial Services Limited is a premier NBFC in India, famous for its strong following from the Tata community, a huge range of financial products, and a customer-centric approach.
#5. Shriram Finance Limited (SFL)
Shriram Finance Limited is a leading player in India’s NBFC industry, with its main attention on underserved rustic and semi-urban markets. It is noted for its experience in commercial vehicle financing and its dedication to financial inclusion, catering to first-time borrowers and small businesses.
#6. Muthoot Finance Limited
Muthoot Finance Limited is one of India’s biggest non-banking financial companies (NBFCs) and the warship company of the Muthoot group. Muthoot Finance is a leading NBFC specializing in gold loans, which use the value of gold to offer fast and simple access to credit for people and businesses. Its strong branch network, and reliable, and customer-friendly loan items have made it a ruling player in the gold financing sector in India.
#7. L&T Finance
L&T Finance is a subordinate of L&T Finance Holdings Limited, part of the bigger Larsen & Toubro (L&T) group – a ruling Indian multinational firm dedicated to construction, manufacturing, engineering, technology, and financial services. L&T Finance is a leading NBFC in India, providing a huge range of financial services with special attention to rustic, residential, and infrastructure finance. With the backing of the L&T Group, L&T Finance uses its experience in the structure industry to offer financing solutions that support the progress of key sectors.
#8. Aditya Birla Finance Limited (ABFL)
Aditya Birla Finance Limited is a ruling NBFC in India with a strong portfolio providing a huge range of financial services to both retail and corporate clients. Using the strength and reliability of the Aditya Birla Group, ABFL’s attention is on offering custom lending instruments, managing high asset quality and always adopting technology-driven initiatives to improve customer experience.
#9. Bajaj Finance Limited
Bajaj Finance Limited is India’s biggest and most popular non-banking financial company (NBFC). It is an arm of the Bajaj Group and works as a separate services firm providing a huge range of financial products. Bajaj Finance Limited is a leading NBFC in India, famous for its huge range of financial products, attention to customer lending, and creative digital services. By providing flexible financing options, good interest rates, and technological tools, Bajaj Finance has presented itself as a reliable option for a huge customer base, contributing importantly to customer finance and the economic progress in India.
#10. HDB Financial Services Limited
HBD Financial Limited is a famous non-banking financial company (NBFC) in India, established in 2007. It is a subordinate of HDFC Bank, one of India’s ruling private state-owned banks. HDB Financial Services pays attention to offering a range of financial products and facilities to improve customer benefit and availability. HDB Financial Services is part of the HDFC group, which also covers HDFC Bank, one of India’s biggest separate banks. The relationship with HDFC offers HDB Financial Services a strong brand reputation and financial firmness.
Conclusion
Non-Banking Financial Companies (NBFCs) play an important role in the financial ecosystem. Unlike banks, NBFCs cannot take demand deposits, but they offer important services like lending, credit facilities, asset financing, and investment products, playing an important role in economic growth and financial inclusion.
FAQs
What is an NBFC in simple terms?
An NBFC is a non-banking financial services that mainly lends money and offers other financial services just like a bank, but it is not allowed to give savings accounts or offer checkbooks.
Why do people choose NBFCs over banks?
Among other things, NBFCs normally provide faster loan approvals, flexible eligibility, and tailored loan products.
Are NBFCs regulated in India?
Indeed. Reserve Bank of India (RBI) regulates all the NBFCs.
Are NBFC loans safe to take?
Loan from an NBFC is completely safe, provided that it is RBI-registered and follows the required compliance norms.
Do NBFCs offer loans to small businesses?
Yes, of course. NBFCs are some of the most important financiers of the MSMEs, startups, and self-employed individuals.
Can NBFCs accept deposits from the public?
Generally, NBFCs do not accept deposits; however, to some extent, a few are allowed by the RBI to raise deposits through fixed deposits.
How do NBFCs help with financial inclusion?
They cater to the needs of the people living in rural areas and also to those who have limited access to formal banking facilities.
Are NBFCs using digital technology?
Yes, most of the NBFCs have already embraced digital technology and are using digital platforms for instant KYC, approvals, and fast repayments.
Is customer support available if issues arise?
Yes, the same grievance and dispute resolution mechanisms regulated by the RBI and applicable to banks also cover NBFCs.
Why are NBFCs important to India’s economy?
They are the major financiers of several key sectors like housing, MSMEs, and consumer finance, which in turn are the main drivers of the economy.
