NBFC & Microfinance
Dive into the world of NBFCs and Microfinance Institutions (MFIs) in India. Learn about their diverse types, regulatory framework, and crucial contribution to financial services, including small finan
- What is an NBFC? A Simple Explanation An NBFC, or Non-Banking Financial Company, provides bank-like financial services but does not hold a banking license. They play a …
- NBFC vs Bank FD: Which Offers Better Returns? NBFC FDs generally offer higher interest rates than bank FDs, making them attractive for better returns. However, bank FDs provide…
- Why is My NBFC Loan Application Rejected? Your NBFC loan application was likely rejected due to a low credit score, high existing debt, or an unstable income. To fix this, …
- NBFC Lending vs Bank Lending NBFCs offer faster loan approvals and more flexible criteria, making them ideal for urgent needs or those with less-than-perfect c…
- Best NBFCs for Personal Loans Non-Banking Financial Companies (NBFCs) are often a faster and more flexible option for personal loans compared to traditional ban…
- How many installments for an NBFC loan? NBFC loans typically run for 12 to 60 installments, with car loans going up to 84 and microfinance loans capped at 24. The right n…
- NBFC Loans for Salaried Employees NBFCs, or Non-Banking Financial Companies, offer personal loans to salaried employees with simpler eligibility criteria and faster…
- Microfinance vs Traditional Loans — Which is better for you? For small, urgent financial needs with minimal paperwork, microfinance from an NBFC is often the better choice. For large, planned…
- Why is accessing microfinance difficult for some? Microfinance feels difficult for many Indian borrowers because of document gaps, rigid group loans, weekly repayment cycles, and t…
- What are the main NBFC regulations in India? The main NBFC regulations in India come from the RBI and cover registration, minimum capital, capital adequacy, fair practices, an…
- NBFC vs Microfinance Institution — What's the difference? NBFCs are broad financial companies that offer various loans and investments to a wide audience. Microfinance Institutions are a s…
- Best NBFCs for two-wheeler loans The best NBFC for a two-wheeler loan is Bajaj Finance, thanks to its wide network, competitive interest rates, and quick approval …
- How to fix issues with NBFC loan applications Most NBFC loan rejections come down to a few specific issues — credit score, income documentation, KYC mismatch, or high existing …
- Checklist: NBFC lending norms you must know NBFC and Microfinance in India follow a lighter rule book than banks, but the core norms are clear. This checklist covers capital,…
- What is the role of RBI in NBFC regulation? The Reserve Bank of India (RBI) is the primary regulator for NBFCs and Microfinance in India. Its role is to ensure financial stab…
- NBFC Loans for Small Business Owners NBFC loans approve in 48 hours but cost 5 to 12 percent more than bank loans. For NBFC and microfinance in India, use NBFCs for sh…
- How to check an NBFC's registration status To check an NBFC's registration status, visit the official RBI website and search for their 'List of NBFCs'. You can then search f…
- How Much Loan Can an NBFC Offer You? An NBFC sizes your loan by capping total EMIs at 40 to 60 percent of your net monthly income, then working backwards from tenure a…
- What are the Different Types of NBFCs? NBFC and Microfinance in India cover more than a dozen activity categories, from Loan Companies and Asset Finance Companies to Mic…
- How much interest does an NBFC charge? NBFC interest rates in India typically range from 11% to 30% per year, depending on the loan type and your credit profile. The fin…
- What is NBFC Regulation in India? NBFC regulation in India is primarily handled by the Reserve Bank of India (RBI) under the RBI Act, 1934. These rules ensure that …
- Microfinance for Self-Help Groups (SHGs) Microfinance for self-help groups gives small earners formal credit without collateral by replacing it with peer trust and joint a…
- The Problem with NBFC Loan Defaults Loan defaults in NBFC and Microfinance in India are a serious issue caused by economic downturns, over-indebtedness, and poor cred…
- What is an NBFC Capital Adequacy Ratio? The NBFC Capital Adequacy Ratio (CAR) is a key measure of a company's financial strength, showing if it has enough capital to abso…
- How NBFC Lending Differs from Bank Lending An NBFC offers faster loan approvals and more flexible eligibility than a bank, but usually at a higher interest rate. Banks are m…
- How NBFCs Contribute to Financial Inclusion in India NBFCs contribute to financial inclusion in India by reaching unbanked populations with tailored credit products and faster, more f…
- How to Open an Account at a Small Finance Bank Step by Step To open an account at a Small Finance Bank, first gather your KYC documents like your Aadhaar and PAN card. Then, choose an accoun…
- Best Small Finance Banks for Savings Accounts Small Finance Banks often offer much higher interest rates on savings accounts than traditional banks, making your money grow fast…
- Why NBFC Interest Rates are Sometimes Higher NBFC interest rates are often higher because they borrow money at a higher cost than banks, which have access to cheap public depo…
- Checklist: NBFC Loan Documents You Must Have Getting a loan from an NBFC requires specific documents like identity, address, and income proof. Having a complete checklist ensu…
- Why does my NBFC loan EMI seem so high? Your NBFC loan EMI seems high primarily because of higher interest rates compared to traditional banks. This is because NBFCs have…
- How to improve your chances of getting an NBFC loan To improve your chances of getting an NBFC loan, focus on building a strong credit score above 750 and organizing all your financi…
- NBFC vs SFB: Which is better for your financial needs? An SFB is better for saving money and getting basic banking services because your deposits are insured. An NBFC is often better fo…
- Best NBFCs for Working Capital Loans: Grow Your Business The best NBFCs for working capital loans depend on your business size and pattern. Bajaj Finserv is strongest overall for steady S…
- How much do NBFCs typically charge for processing fees? In India, NBFCs typically charge a loan processing fee ranging from 1% to 3% of the total loan amount. This one-time, non-refundab…
- NBFC Loans vs. Peer-to-Peer (P2P) Lending: Which is Faster? Peer-to-Peer (P2P) lending is often faster for initial approval, but the overall time depends on how quickly investors fund your l…
- Best NBFCs for Loan Against Securities: Leverage Your Investments Did you know that in India, where millions hold investments in shares and mutual funds, you can get a quick loan against them with…
- Are NBFCs as safe as banks for loans? For a borrower, taking a loan from a reputable, RBI-registered NBFC is generally as safe as borrowing from a bank. The primary dif…
- NBFCs for New Businesses: A Starting Guide NBFCs, or Non-Banking Financial Companies, are a vital source of funding for new businesses in India. They offer faster loan appro…
- NBFC vs Banks: Which is Better for Your Loan Needs? NBFC vs banks: banks win on rates and tenure for secured loans; NBFCs win on speed, flexibility, and approval for non-standard bor…