Top 10 NBFC Companies in India

The Non-Banking Financial Companies (NBFCs) have risen to become the significant centers of activity in the Indian financial environment that fills in the gap between the conventional banking services and the modern financial demands. These specialised financial institutions offer essential lending and investment services to many millions of Indians, especially in unserved markets where mainstream banks do not have much presence. Much like Fintech Companies in India, NBFCs are driving innovation and accessibility in financial services.

The NBFC companies do not have to follow the same restrictions in terms of flexibility and innovation as the traditional banks, which makes their loan process faster, their financial products more personalized, and their services easier to obtain. As the economy of India goes through rapid growth, NBFCs have played a pivotal role in financing small business, consumer finance, vehicle financing, and digital money transfer. They are vital constituents of the Indian financial system because of what they bring to the table in terms of financial inclusion and economic development.

What is an NBFC Company?

A Non-Banking Financial Company (NBFC) is a financial institution which is registered under the Companies Act and is regulated by the Reserve Bank of India (RBI) which does not hold a banking license but is permitted to provide banking services. These firms are also involved in lending, investment, hire purchase, insurance and chit funds among other financial services like the banks.

NBFCs are an important aspect of the financial system in India, as they target customers (who might not be able to access traditional banking services). They have less restrictive lending standards and can offer tailored financial solutions to a particular customer segment. The big difference is that unlike banks, NBFCs are not allowed to receive demand deposits but can receive term deposits subject to certain conditions, and hence are specialized financial services providers with emphasis on credit and investment activities.

Difference Between NBFCs and Banks

NBFCs:

Receive demand deposits and accept demand deposits
It is not obligated to hold Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)
Are not allowed to draw checks against themselves
Deposit insurance facility given by DICGC unavailable
Easier lending guidelines and a quicker turnaround on loans
Targeted at the customer groups and niche markets

Banks:

The bank is allowed to receive all forms of deposits, including demand deposits
Keep CRR and SLR at RBI guidelines
It can issue checks and offer full payment services
Deposits are covered by DICGC to certain limits
Ensure regulatory compliance and standardization of processes
Provide full banking services such as current account and savings account

Types of NBFCs in India

Housing Finance Companies (HFCs): These are specialized in long-term financing of purchase, construction and renovation of residential property
Microfinance Institutions (MFIs): They are specialized in giving small loans and financial services to the low-income individuals and the rural population
Asset Finance Companies (AFCs): This is essentially a company that provides finance to purchase physical goods such as vehicles, machinery and equipment to businesses and individuals
Core Investment Companies (CICs): Invest in shares and securities of other companies with the main business activity
Investment and Credit Companies (ICCs): Offer a range of financial services such as lending, investment advice and credit facilities
Infrastructure Finance Companies (IFCs): These companies are involved in financing long term infrastructure projects and development initiatives

1. Muthoot Finance

Founding Year & Headquarters: 1939, headquarter: Kochi, Kerala
Target Audience / Ideal Customer: People who need fast money by pledging gold, small entrepreneurship and semi-urban and rural consumers

Muthoot Finance is the largest gold finance company in India, which has introduced path breaking lending solutions using gold as security. The organization has established a wide network in India, and as a result, offers instant liquidity to its customers through secured lending. Having financed gold over decades, Muthoot Finance has gained customer confidence by adopting transparent processes, offering competitive interest rates and disbursing the loans within a short period of time. The concept of its business is risk-free lending using the physical gold as collateral, and it has minimal defaults, and it also serves customers who are in urgent need of financial help. It is also among the most trusted NBFC Companies in India.

Key Products & Services:

Gold loans with a fast turn around and repayment structure
Upon personal loans on different financial needs
Foreign exchange and money transfer services
Mortgage loans on the purchase of property and construction
Small and medium business loan

Unique Features / Strengths: India based gold loan enterprise with more than 5,000 branches in the country

Market Cap: ₹75,000+ Crores (approximately as per the latest valuations)

Website Link: https://www.muthootfinance.com/

Look Further: Finance Companies in Hyderabad

2. HDFC Limited

Founding Year & Headquarters: 1977, headquarters: Mumbai, Maharashtra
Target Audience / Ideal Customer: Home buyers, property investors, high-net-worth individuals and customers who are seeking premium housing finance solutions

HDFC pioneered housing finance in India, and is the largest housing finance company in India. The institution has been revolutionary in ensuring that home ownership becomes possible to millions of Indians with its innovative loan products and competitive interest rates. Its experience in the field of risk assessment, customer service excellence and the long term relationships with borrowers have made HDFC a trusted name in housing finance. Its sound lending policy and high capital base have helped the company to experience steady growth whilst upholding good asset quality norms. It also stands as one of the leading NBFC Companies in India.

Key Products & Services:

Home financing to buy, build, and renovate
Secured Loan against property to meet various financial requirements
Take a plot loan to buy the land and build
Renovation loans to upgrade a home
The Overseas Indians can avail NRI home loans.

Unique Features / Strengths: Original player in the Indian housing finance, and it holds the largest market share

Market Cap: A part of merged HDFC bank with market cap of over 15 lakh crores

Website Link: https://www.hdfc.com/

3. Shriram Transport Finance

Founding Year & Headquarters: 1979 Headquarters in Chennai, Tamil Nadu
Target Audience / Ideal Customer: Commercial vehicle operators, fleet owners, small transport businesses and logistics companies

Shriram Transport Finance Company deals with financing commercial vehicles and it has become the leader in transport finance in India. The firm is the mainstay of the logistics industry in India as it offers custom financing solutions to trucks, buses, and other commercial vehicles in India. They have a thorough understanding of the transport industry, flexible lending terms and a large branch network in semi-urban and rural areas which has made them the favorite financier to the transport operators. Good relations with car manufacturers and dealers boost their position in the market. It also stands as one of the leading NBFC Companies in the country.

Key Products & Services:

Loans on trucks, buses, and trailers
Financing of used vehicles at favourable rates
Heavy machinery finance of construction equipment
Tractor loans to farm and business purposes
Personal and two-wheeler lending

Unique Features / Strengths: Market leader in commercial vehicle financing with a wide rural presence

Market Cap: On the verge of ₹45,000+ Crores (approximate current valuation)

Website Link: https://www.shriramfinance.in/

4. L&T Finance Holdings

Founding Year & Headquarters: 1995, headquarters in Mumbai, Maharashtra
Target Audience / Ideal Customer: Infrastructure companies, rural customers, small businesses and individual borrowers in different segments

L&T Finance Holdings is a multi-dimensional financial services company with wide business lines of rural finance, infrastructure finance, and retail lending. The company uses technology and data analytics to deliver to the urban and rural markets. It is part of the Larsen & Toubro Group and, therefore, it offers the financial services the engineering excellence and efficiency of this prestigious company. They are focused on sustainable growth and risk management and therefore have been able to deliver steady performance through economic cycles and the maintenance of high asset quality. It also stands as one of the leading NBFC Companies in the country.

Key Products & Services:

Infrastructure project financing and term loans
Rural financing, microfinance and farm loans
Products and services include loan against property, housing finance, and loan against property services
Wealth management and distribution of mutual funds
The two-wheeler and personal loans products

Unique Features / Strengths: Broader financial services platform supported by the strong brand of the L&T Group

Market Cap: ₹25,000+ Crores (roughly based on the current market performance)

Website Link: https://www.ltfinance.com/

5. Mahindra Finance

Founding Year & Headquarters: 1991 and has its headquarters in Mumbai in the state of Maharashtra
Target Audience / Ideal Customer: Rural customers, farmers, small business owners and people who want to finance or lease vehicles and equipment

Mahindra & Mahindra Financial Services Limited targets the countryside and semi-urban markets mainly with vehicle financing and other financial services to those customers. The company has established a firm base in the rural economy of India by developing a relationship with the local needs and developing customized financial solutions. They have a wide coverage in rural areas and this, together with digitalization, allows them to reach their customers in distant places. Good relations with the automotive division of the major Mahindra Group can bring more business synergies and commercial opportunities. It also stands as one of the leading NBFC Companies in the country.

Key Products & Services:

Farm equipment and tractor financing products
Commercial vehicle loans, and passenger car loans
Two wheeler loans which have easy repayment terms
Fixed deposits and insurance distribution services
SME loans on small business needs

Unique Features / Strengths: Excellent rural orientation and network in the agricultural markets

Market Cap: ₹18,000+ Crores (current approximate market valuation)

Website Link: https://www.mahindrafinance.com/

6. Aditya Birla Capital

Founding Year & Headquarters: 2007, headquarters in Mumbai, Maharashtra
Target Audience / Ideal Customer: Individual investors, high-net-worth individuals, corporates, and customers who may need diversified financial services

Aditya Birla Capital is a financial services company that provides lending, asset management, and insurance as well as advisory services. The company is a part of the Aditya Birla Group and thus it can use its good brand name and the wide business network to offer full-service financial solutions. They have a digital-first strategy and customer-centric initiatives that have facilitated their fast growth in several financial-service sectors. Firm risk management and wise capital deployment are upholding long-term business development and satisfying a wide range of customer segments. It also stands as one of the leading NBFC Companies in the country.

Key Products & Services:

Business financing and personal loans
General insurance products and life insurance products
Investment Portfolio management and Mutual Funds
Employee benefits schemes and medical cover
Mortgage finance and housing loans services

Unique Features / Strengths: Conglomerate financial services provider with powerful brand support

Market Cap: ₹35,000+ Crores (approximately based on combined businesses)

Website Link: https://lifeinsurance.adityabirlacapital.com/

7. Indiabulls Housing Finance

Founding Year & Headquarters: 2005 and is headquartered in Gurugram, Haryana
Target Audience / Ideal Customer: Home buyers, property investors, and customers seeking home loans services, and loan against property services

Indiabulls Housing Finance deals with home loans and loan against property services and covers customers in the major cities and emerging markets of India. The firm has positioned itself as an important player in the housing finance industry by offering competitive prices and efficient systems of loan processing. Their attention to technology uptake and digitized processes allows quicker loan granting and a better customer experience. Good networking with real estate developers and property consultants give it more business opportunities and It also stands as one of the leading NBFC Companies in the country.

Key Products & Services:

Home mortgages with good interest rates and terms
Secured loan against property to meet business and personal requirements
Take loans to buy and develop land
Stage wise disbursement home construction loans
Facilities of balance transferring and top-up loans

Unique Features / Strengths: Strong digital and housing finance capabilities

Market Cap: ₹8,000+ Crores (rough current market value)

Website Link: https://www.sammaancapital.com/

8. Tata Capital Financial Services

Founding Year & Headquarters: 2007, Mumbai, Maharashtra
Target Audience / Ideal Customer: Individual consumers, small businesses, corporates and customers who are interested in various financial services

Tata Capital Financial Services builds on the 100-year-old history of trust and reliability that the Tata Group has, in order to offer comprehensive financial solutions to a variety of customer segments. The company has a mix of traditional values with contemporary financial practices to satisfy various needs of customers. They have a robust risk management structure, their customer focus, and their wide distribution channels are the bases of their sustainable growth without compromising service levels. Digital transformation projects and technology deployment help to optimize the effectiveness of the operations and customer satisfaction rates. It also stands as one of the leading NBFC Companies in the country.

Key Products & Services:

Lifestyle financing and consumer durable loans
Two-wheeler and car loans at interesting schemes
Personal loans, business financing solutions
Auto and equipment financing
Loan against securities and investment services

Unique Features / Strengths: Belongs to renowned Tata Group with a wide portfolio of financial services

Market Cap: A subsidiary of Tata Capital Limited with high personal value

Website Link: https://www.tatacapital.com/

9. Bajaj Finance

Founding Year & Headquarters: 1987, Pune, Maharashtra
Target Audience / Ideal Customer: Consumers, small businesses and customers in need of consumer and personal lending services

Bajaj Finance Limited (BFL) is an Indian non-banking financial company that takes deposits and is headquartered in Pune. It has an asset base of 101.82 million and assets under management of 101.82 million (US$49 billion), as of March 2025. The company has evolved into a full-service financial services organization with a digital-first mindset out of a traditional consumer durable financier. They have one of the most successful NBFC Companies in India because of their innovative product offerings, aggressive growth strategies and technology adoption. Customer loyalty and strong brand recognition are some of the factors that make them the market leaders.

Key Products & Services:

Consumer durable finance and payment solutions
Fast loans Personal loans and business loans
Credit card and payment gateway services
Competitive interest rates on fixed deposits
Financing of two-wheelers and cars

Unique Features / Strengths: 5,55,868 Crore and fastest-growing NBFC with strong customer base

Market Cap: ₹5,55,868 Crores

Website Link: https://www.bajajfinserv.in/

10. LIC Housing Finance

Founding Year & Headquarters: 1989, Mumbai, Maharashtra
Target Audience / Ideal Customer: Home buyers, property investors and customers that need housing finance solutions with government support

LIC Housing Finance Limited is one of the subsidiaries of Life insurance Corporation of India which offers housing finance services with the support of the largest life insurer of India. The company merges LIC with its good brand name with specialized knowledge in the housing finance to reach its customers in their respective income scalings. Their sound lending policies, low interest rates, and wide branch network make it possible to reach middle-class families to own their homes. High capital base and risk management means stable performance and maintaining good standards in asset quality. It also stands as one of the leading NBFC Companies in the country.

Key Products & Services:

Flexible repayment home loans
Real estate developer project finance
Loan on mortgaging property to fulfill the financial needs
NRI home loans to the overseas Indian customers
Home improvement loans, extension loans

Unique Features / Strengths: Strength of financial backing by LIC with Government support

Market Cap: ₹40,000+ Crores (approximately on current market performance)

Website Link: https://www.lichousing.com/

Types of Loans NBFCs Offer

Personal Loans (Companies: Bajaj Finance, Tata Capital, IIFL Finance)

Personal loans offered by the NBFC companies are unsecured lending facilities used to fulfill different personal needs such as medical emergencies, travel, education, and even debt consolidation. These loans are mainly characterized by fast turnaround periods, low documentation requirements and repayment schedules of up to 60 months. By using technology and alternative sources of information on credit, NBFCs are able to provide access to credit to customers who have low credit history. Interest rates are determined according to the customer profile, amount of loan taken and tenure, and are competitive with a traditional bank.

Vehicle Loans (Companies: Shriram Transport Finance, Mahindra Finance, Cholamandalam Investment)

Vehicle financing offered by specialized nbfc companies includes: two-wheelers, passenger cars and commercial vehicles with a differentiation in various customer segments. The loans have up to 90 percent financing of vehicle value with tenure that extends to 7 years on passenger vehicles and 5 years on two-wheelers. NBFCs have established a close tie with automobile dealers and manufacturers, where they can approve the loan instantly at the dealer premises. Flexible EMI plans, seasonal payment plans on commercial vehicles and tempting interest rates help make vehicle ownership affordable to a wide range of customers.

Business Loans (Companies:

L&T Finance, Aditya Birla Capital, IndusInd Bank NBFC arm) Business loans are products of nbfc companies and provide small and medium businesses with solutions to working capital finance, term loans and equipment funding. The loans fill the gap of businesses that are not able to access conventional bank funds because of lack of strong collateral or credit history. NBFCs provide loans of 1 lakh to 50 crores with a loose collateral requirement and quicker turnaround times. Customised repayment schedules based on business cash flows, industry-specific solutions and relationship-based lending are very appealing to growing businesses.

Home Loans (Companies: HDFC Limited, LIC Housing Finance, Indiabulls Housing Finance)

The dedicated companies dealing with home loans, offer affordable rates of interest and flexible terms through which property can be purchased, constructed, and renovated. These loans have larger loan-value ratio, longer repayment period to 30 years, and products designed to meet the varied needs of different customers such as NRIs and self-employed. NBFCs offer quicker turnaround time in the processing of loans, easy documentation and also offer personal customer services unlike conventional banks. Other services such as the balance transfer, top-up loans, and property advisory will make the process of buying a home complete and easy.

Gold Loans (Companies: Muthoot Finance, Manappuram Finance, IIFL Gold Loans)

Gold loans are offered by specialized nbfc companies where one can get immediate liquidity against gold ornaments and coins with minimal documentation and quick processing. These secured loans have competitive interest rates, repayment flexibility and loans up to 75% of the value of the gold as per RBI instructions. NBFCs have a wide network of branches to evaluate, store, and service their loans in gold, which makes them convenient and trusted among the customers. Options such as part-payment facility, tenure extension, and online account management make gold loan convenient and customer-friendly in times of urgent financial needs.

Benefits of NBFCs

Quicker Loan Processing: NBFCs are able to process loans faster than traditional banks do with their faster processes and the use of technology
Flexible Lending Policies: Less stringent lending policies and tailored solutions by customers with low credit history or non-standard sources of income
Niche Services: The ability to target certain customer groups and loan types allow being more experienced and offer customized financial services
Improved Customer Service: A more customized experience, relationship focus, and special customer care departments are entailed to provide a higher level of customer care experience
Larger Loan Amounts: In the case of qualified customers, larger loan amounts and a higher loan-to-value ratio is often offered than banks do
Innovation and Technology: Adopt digital tools, substitute credit scoring processes, and new products to be able to serve the changing customer needs in an effective manner

How to Choose the Best NBFC in India

Check RBI Registration: This should be verified that the NBFC is registered with the Reserve Bank of India and has a valid certificate of compliance with the regulatory requirements and customer protection.
Compare Interest Rates: Compare interest rates, processing charges, and the overall cost of borrowing with various NBFCs to get the most competitive deal
Review Reputation and Track Record: Look into company history and customer feedbacks, as well as market reputation to make sure it is reliable and delivers trustworthy services
Evaluate Customer Service: Take into account such aspects as the number of branches, online platforms, the quality of customer service, and the resolution of complaints to experience service performance
Read Loan Terms and Conditions: Read through the loan terms and conditions and understand the repayment plans, prepayment fees, late payment penalties and other terms prior to making commitments
Answer Financial Stability: Analyze the company to ascertain how stable it is financially, its credit ratings, and history of regulatory compliance to ensure long-term stability and continuity of services

Conclusion

The NBFC companies in India are still developing as an essential part of the financial services sector that fills in the gap that is left by the traditional banking sector and offers innovative products and services to its customers. NBFC companies have shown exceptional strength and development and they serve more than 100 million customers in both urban and rural areas with specialized financial products and services.

With digital transformation gathering pace and regulatory frameworks firming up, these institutions hold a good position to capture the emerging opportunities in fintech, digital lending, and financial inclusion. This list of top NBFCs shows the variety of the industry, the gold loan experts and the housing finance leaders who are all playing an essential role in the growth of the economy and improvement of the financial ecosystem in India.

Frequently Asked Questions (FAQs)

Q1: What is the principal distinction between the NBFC companies and the banks?

NBFCs do not have the authority to take demand deposits and issue checks, whereas banks provide all the banking services including demand deposits and payment systems.

Q2. Do NBFC deposits have safety and insurance?

The DICGC insurance does not cover NBFC deposits as it does in the case of bank deposits and it is therefore crucial to invest in reputable well-regulated NBFCs.

Q3: How can I check the authenticity of an NBFC?

Check the official web site of RBI to get the list of registered NBFCs and check the Certificate of Registration of the company before using their services.

Q4. Are NBFCs authorized to lend without collaterals?

A large number of NBFCs provide unsecured personal loans, business loans, and other credit facilities on the basis of earnings and credit evaluation.

Q5 What documents are normally required in NBFC loans?

Standard documents are proof of identity, proof of address, income documents, bank statements and other documents depending on the loan type and size.

What is an NBFC Company?

Difference Between NBFCs and Banks

NBFCs:

Banks:

Types of NBFCs in India