Apply for NBFC Registration to get NBFC License in India

If you planning for start a finance company or business, so you should know about nbfc registration. So I’m goes to telling about what is NBFC Registration & how to get it.

NBFC stands for Non-Banking Financial Corporation is a company registered under the provisions of Companies Act 2013. NBFCs deal in several Financial Services such as the provision of loans, assets financing, investment in securities, etc. NBFC is a type of financial corporation that deals in finance provide shadow banking services to their customer without holding any banking license.

If you are interested in entering the financial market soon, this article explains everything about NBFC such as the procedure for NBFC License Online, documents required, capital required and other key-requirements. Let us comprehend in detail henceforth about NBFC and how it works in India.

Procedure to getting A NBFC License Online

Following is the easy step to obtain NBFC License Online:
• Start the process by creating a company under the Companies Act 2013. No other entity other than the company is allowed to apply for an NBFC license. Any type of company such as private or public can apply for a license. However, OPC cannot apply to RBI for NBFC License. The company shall mention the objectives of financial activities on its MOA.
• After the registration of the company, it needs to raise its capital to match the net-owned fund on INR 2 Crore as per RBI norms for NBFC registration.

Types of NBFC Companies
Following categories of Companies can apply for NBFC License:

• Asset Finance Company is a financial institution whose principal activity is to finance the physical asset such as automobiles, generators, lathe machines, and material handling equipment.
• Investment Company is a financial institution whose principal activity is acquiring and dealing in securities, stock, shares, bonds, and similar financial securities.
• Loan Company indulges in the activity of providing finance, make loans & advances, or other related activities.
• Infrastructure Companies are engaged in financing infrastructure and deploy 75% of its total assets in infrastructure loans
• Core Investment Company has an asset size of INR 100 Crore and is indulge in the business of accepting deposits.
Wrapping up the Blog
In case you intend to enter the financial market, one must get the NBFC License Online by following simple procedures. Due to NBFC's quick sanctioning of Loan makes it a preferable choice over the traditional banks these days. Contact our team of experts and consultants to get NBFC License with ease in no time.