Types of Non Banking Financial Companies: What They Are and How They Work
NBFCs are crucial for India's financial landscape with many types of non banking financial companies providing services such as investment products, asset financing, and loans. They do not require a full banking license and are allowed to cater to underserved segments like SMEs and rural communities. An NBFC can offer more accessible credit options and have greater lending criteria flexibility when compared to traditional banks. This allows businesses and individuals to secure funding easily. Additionally, they bridge the gaps in the market and contribute to financial inclusion, promoting economic growth and stimulating entrepreneurial ventures in different sectors.