A Non Banking Financial Company or NBFC is a company that is registered under the Companies Act 2013 or 1956, which is engaged in the business of Loans and Advances, equities, debentures or securities issued by the government or any local authority or other marketable securities of like nature such as leasing, hire-purchase, insurance business, chit business and so on. The NBFCs do not include any institution whose principal business is that of agriculture, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.
The main objective of this type of a company is to accept deposits under any scheme. According to Section 451(c) of the RBI Act, a Non Banking Finance Company carrying on the business of a financial institution is an NBFC. It is governed by the Ministry of Corporate Affairs MCA, as well as the Reserve Bank of India, RBI.
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Given below are the various types of NBFCs:
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Once the Non Banking Financial Company gets itself registered and receives its license, the company has to adhere to the following regulations:
The financial services offered by the NBFCs are disbursement of loans and advances and acquisition of bonds, shares and stocks. Discussed below are the functions of the NBFCs and how they contribute to the growth of the economy:
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There are a large numbers of NBFCs that function in India. Listed below are some of them:
NBFCs lend and make investments and hence their activities are akin to that of banks; however there are a few differences:
NBFC home loan interest rate and FD rates:
Name of NBFC |
Home loan interest rate |
Fees and charges |
Bajaj finserv |
8.85% per annum |
10K Plus GST as PF + 0.20% of the Loan Amount as MOD Charges |
DHFL |
Salaried - 8.60% per annum to 9.5% per annum |
10K Plus GST as PF + 0.20% of the Loan Amount as MOD Charges |
Indiabulls |
8.35% per annum - 11.50% per annum |
10K Plus GST as PF + 0.20% of the Loan Amount as MOD Charges |
LIC Housing |
7.30% per annum to 7.70% per annum |
10K Plus GST as PF + 0.20% of the Loan Amount as MOD Charges |
PNB Housing Finance Ltd. |
8.35% per annum - 11.00% per annum |
10K Plus GST as Processing Charges/ Zero MOD Charges |
IDFC |
Salaried - 8.55% per annum to 10% per annum |
10K Plus GST as PF + 0.20% of the Loan Amount as MOD Charges |
TATA Capital |
8.75% p.a. - 9.05% p.a.
|
10K Plus GST as PF + 0.20% of the Loan Amount as MOD Charges |
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