Non-Banking Financial Companies (NBFCs)  is a financial institution that operates much like  banks but do not have full banking licence. NBFCs cannot provide certain banking services that banks offer. Though NBFCs provide loans, insurance schemes, credit facilities, retirement plans, etc., they are restricted from taking any form of deposits. Though credit cards are offered only by banks, NBFCs are now allowed to venture into credit card business upon obtaining the approval from the Reserve Bank of India.

People sometimes prefer NBFCs over banks due to the convenience of quick approval on loans. Following are the 10 best Non-Banking Financial Companies in India.

1. Bajaj Finserv Limited

Bajaj Finserv Limited is an Indian Financial Services Company which is a part of Bajaj Holdings & Investments Limited. The company is engaged in consumer finance business, life and general insurance, etc. Their popular product is  EMI card which offers ‘No Cost EMI’ (processing fees charged) facility to numerous customers. With the approval of RBI, the company has also ventured in credit card business.

2. Mahindra & Mahindra Financial Services Limited

Began as the captive financier of Mahindra utility vehicles in the early 90s, Mahindra Finance has diversified into a financial service provider, offering a wide range of financial products to varied customers. The company has built a reputation of its own by serving in over 3,60,000 villages. Mahindra Finance has been recognized as Aon Best Employer 2017 and Best BFSI Brands 2018 by The Economic Times.The company is offering the following products to their customers.

  • Vehicle Financing

  • Housing Loans

  • Personal Loans

  • SME Financing

  • Insurance Broking

  • Mutual Fund Schemes

  • Fixed Deposits

3. HDB Financial Services 

Being one of the leading non-banking financial services companies in India, HDB Financial Services offers various financial products and services to their customers. It is a subsidiary company of HDFC Bank. Established in 2007, HDB Financial Services is accredited with CARE AAA and CRISIL AAA rating for long-term debt and banking facilities and A1+ rating for short-term debt and commercial papers. The company is growing strong with over 1000 branches spread across 22 states and 3 union territories. BPO services is another domain of the company that is involved in forms processing, document verification, finance and accounting services and correspondence management.

4. Muthoot Finance

Well-known for its gold loans, Muthoot Finance is headquartered in Kochi, Kerala. Besides offering gold loans, Muthoot Finance is also involved in foreign exchange services, money transfers, wealth management services, travel and tourism services. Gold coins are also sold at Muthoot Finance branches. The company operates over 4,400 branches across 24 states in the country.  It is also the parent company of Muthoot Housing Finance (India) Ltd, which offers home loans.

5. Tata Capital Limited

Established in 2007, Tata Capital Limited is a subsidiary of Tata Sons Limited. Offering a wide range of financial services and products to their customers, the company is steadily growing with over 200+ branches all over the country. The company provides services in the following categories.

  • Commercial Finance

  • Investment Banking

  • Private Equity

  • Asset Finance

  • Investments

  • Consumer Loans

  • Tata Cards

  • Cleantech Finance

  • Leasing Services

6. Aditya Birla Finance Limited

Being one of the leading non-banking financial companies in India, Aditya Birla Finance Limited offers a wide range of services to varied customers. The company is registered with RBI as systemically important non-deposit accepting non-banking financial company which ranks among the top 5 largest private diversified NBFCs in India based on AUM. The company offers services in the following categories.

  • Life Insurance

  • Asset Management

  • Private Equity

  • Corporate Lending

  • Structure Finance

  • Project Finance

  • General Insurance Broking

  • Wealth Management

  • Equity Currency and Commodity Broking

  • Pension Fund Management

  • Health Insurance Business

7. Cholamandalam Investment & Finance Company Limited

Started as the equipment finance company in 1978 as the arm of the Murugappa Group, Cholamandalam Investment & Finance Company Limited today provides comprehensive financial services to a wide range of customers. Offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stock broking, the company operates from over 900 branches across India.

8. Shriram City Union Finance Limited

Established in 1986, Shriram City Union Finance Limited is a part of the Shriram Group. Registered with RBI as deposit accepting non-banking financial company, Shriram City Union Finance Limited is specialised in retail finance. With over 1000 outlets across India, the company is listed on the Bombay Stock Exchange (BSE) and Madras Stock Exchange. The company is also involved in various non-profitable activities, empowering student communities and rural people in India.

9. Indiabulls

Indiabulls is a non-banking financial company that offers diversified services in consumer finance, housing finance and personal wealth. Apart from that, the company also has a presence in real estate, pharmaceuticals, lighting and infrastructure and construction equipment leasing.Indiabulls has been rated as AAA by leading rating agencies. It has also been listed in the BSE and NSE.

10. Sundaram Finance

Established in 1954, Sundaram Finance began its operation with the objective of providing financing for commercial vehicles. Later on, over the period, the company has diversified its business. Following are the financial products and services offered by Sundaram Finance:

  • Vehicle Finance

  • Construction Equipment Finance

  • SME Finance

  • Leasing

  • Wealth Management Services

  • Mutual Funds

  • Life Insurance

  • General Insurance

The above-mentioned Non-Banking Financial Companies offer all types of financial services to the customers much like a bank. However, availing credit and debit cards or opening a deposit account may not be possible with several NBFCs.

Additional Reading: Banks vs. NBFCs: Where Can You Get the Best Deal on Loans?