The Rise of Pri

The Rise of Private Finance in India's Loan Sector

At some point of our lives, each one of us has to depend on loans to fulfil our monetary demands. The loan sector has always been the saviour of the working class. As more and more companies are opting towards privatization, private finance companies have grown rapidly. Most of the private finance companies are opting for the NBFC license.

What are NBFCs?

Non Banking Financial Companiy, abbreviated as NBFC is a private finance company registered under the Companies Act (1956) of India. An NBFC is usually involved in the business of loans and advances, purchasing shares, stocks or bonds, insurance business, etc.

Types of NBFCs

1. Asset Finance Company –the asset finance type of NBFCs are involved in the business of financing physical assets like stocks or supporting products like automobile, crane, tractor, generator sets, etc.
2. Investment Company (IC) – the primary business of investment companies is in the investment of securities.
3. Loan Company (LC) –the primary business of loan companies is to provide finance by giving out loans.
4. Infrastructure Finance Company –three-fourths of the company's assets are used to provide infrastructure loans.
5. Infrastructure Fund Debt: NBFC–this type of company facilitates the flow of long term debt into infrastructure projects.
6. NBFC factors – the primary business of this type of company is factoring, that is, financial transaction and debtor finance.
7. Gold Loan NBFCs – as the name suggests, this type of NBFCs provide loan in monetary form but receive the returns in the form of gold.
8. Residuary Non Banking Companies – these companies receive deposits. They regulate under the RBI.

List of the best NBFCs in India

• Eduvanz
• Muthoot Finance Limited
• Bajkoaj Finance Limited
• Shriram Transport Finance Company Limited
• Mahindra and Mahindra Financial Services Limited
• HDB Finance Services
• Cholamandalam Finance
• TATA Capital Financial Services Limited
• L &T Finance Limited
• AdiyaBirla Finance Limited

Non Banking Finance Companies – Loan Providers

Nowadays, many people prefer to receive loans from private organizations than the government regulated ones. This is because private organizations provide instant loans with less hassles and minimal procedures. Also, it is possible to get a large sum of money at a time from NBFCs.

NBFCs in Hyderabad

Hyderabad is one of the most emerging cities of India in terms of development. It is second only to Bangalore when it comes to the IT sector. The city attracts many people from all over the county due to the immense job opportunities band other basic facilities. This has resulted in the rise of Private Finance Companies in Hyderabad.