Nbfc company registration, nbfc definition, nbfc example, nbfc expand, nbfc license

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TYPES OF NBFC

NBFC ENTITY • Non-banking financial companies, or NBFCs, are financial institutions that provide certain types of banking services, but do not hold a banking license.

Generally, these institutions are not allowed to take deposits from the public, which keeps them outside the scope of traditional oversight required under banking regulations.

NBFC ENTITY • Generally, these institutions are not allowed to take deposits from the public, which keeps them outside the scope of traditional oversight required under banking regulations.

TYPES OF NBFC • Asset Finance Company (AFC)

• Investment Company (IC) • Loan Companies (LC) • Infrastructure Finance Company (IFC)

TYPES OF NBFC • Systemically Important Core Investment Company (CIC-NDSI) • Non-Banking Financial Company or Micro Finance Institution (NBFC-MFI)

1. Asset Finance Company • The major role of those corporations is to finance the assets like machines, cars, generators, material equipment’s, industrial machines etc.

2. Investment Company (IC) • Investment companies are business entities, both privately and publicly owned, that manage, sell, and market funds to the public.

• These companies deal in securities and its acquisition.

3. Loan Companies (LC) • The main business of such a corporation is to produce finance by creating loans or advances or otherwise for any activity apart from its own.

• It does not embrace Associate in Nursing AFC (Asset Finance Company).

4. Infrastructure Finance Company (IFC) • IFCs are firms with internet owned funds of, at least, Rs.300 large integer and India have deployed seventy fifth of its total assets in infrastructure loans. • It has to have a credit rating of A or higher than and a CRAR of 15 August 1945.

5. Systemically Important Core Investment Company Such NBFCs have associate degree quality of Rs.1,00,000 and on top of, and have deployed a minimum of ninetieth of its assets within the style of investment in shares, debt instruments or loans in cluster firms.

6. Micro Finance Institution • NBFC-MFI encompasses a minimum of eighty fifth of its assets within the kind of microfinance. • This microfinance has to be within the kind of loan given to those with AN annual financial gain of Rs.60, 000 (in rural areas) and Rs.120, 000 (in urban areas).

6. Micro Finance Institution • These loans should not exceed Rs.50, 000 and the tenure must not be but 24 months.

• In addition, the loan has to be sanctioned while not collateral.

• Here, the burrowers have to be compelled to repay the loans in instalments weekly, fortnightly or monthly, as agreed.