NBFC Registration

Non-Banking Financial Corporation is any Company engaged in the business of issuance of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, etc.,

Any entity which is in such businesses can only operate if they procure NBFC License from the Reserve Bank of India.

Various types of NBFCs include:

• Asset Finance Company (AFC): With the principal business of financing of physical assets supporting productive/economic activity, such as Plant & Equipment, Machinery, Automobiles, etc.,
• Investment Company (IC): This means any company which is a financial institution carrying on as its principal business the acquisition of securities.
• Loan Company (LC): LC means any company which is a financial institution carrying on as its principal business the providing of finance whether by making loans or advances or otherwise.
• Infrastructure Finance Company (IFC): IFC is a non-banking finance company that deploys at least 75 percent of its total assets in infrastructure loans.
• Core Investment Company (CIC): CIC is an NBFC carrying on the business of acquisition of shares and securities.
• Infrastructure Debt Fund (IDF-NBFC): IDF-NBFC is a company registered as NBFC to facilitate the flow of long-term debt into infrastructure projects.
• Micro Finance Institution (NBFC-MFI): NBFC-MFI is a non-deposit-taking NBFC having not less than 85% of its assets in the nature of Small loans.