Top 10 NBFCs in India

April 29, 2024

Registrationwala

NBFC’s full form is Non-Banking Financial. It is a financial institution that provides financial and banking services without fitting the definition of a bank. These institutions are supervised and governed by the Reserve Bank of India (RBI).

About Top 10 NBFCs in India

The role of NBFCs is a crucial one for the Indian economy since it provides credit and other financial services to parties which are usually not served by the traditional banks. In this article, we will take a glimpse at the top 10 NBFCs in India.

1. Tata Capital Limited

Tata Capital Limited is a big NBFC in India. It was established in 2007 as a subsidiary of Tata Sons Limited. The business offers a wide range of investment and financial services to the customers including consumer loans, infrastructure financing, commercial financing, cleantech financing, asset financing, private equity, leasing services and more. Tata Capital is dedicated to serving the various financial needs of individuals and businesses in India. It is headquartered in Mumbai and its subsidiaries’ registered offices are located in Singapore and London.

The business has Pan-India presence with a network of branches and customer touch points across various towns and cities. This allows Tata Capital to make its services available to a wider customer base. Some awards and recognitions received by Tata Capital are Environment Category of the CSR Journal Excellence Awards 2023, Excellence in Water Conservation by ASSOCHAM, February 2023 and DMAasia Sparkies Awards for SEO – Best user growth campaign 2022.

It has also won other awards like Excellence & Innovation award, exemplary contribution on Safety, Health & Environment, December 2021, Human Excellence Awards 2021, Marketing campaign of the Year 2021 by the Great Indian Marketing Awards and India DigiPlus Awards 2020.

Tata Capital Limited is registered with RBI as a Core Investment Company. It has been acknowledged for its client-centric strategy in the financial services industry and places a high priority on customer happiness. It has adopted digital technologies to improve customer satisfaction and expedite procedures. This includes the release of mobile applications. Tata Capital aims to be the most dependable financial partner, known for its dedication to moral behavior and financial stability.

2. Larson & Toubro Finance Limited

L & T Finance Ltd. was established in 2008. It is headquartered in Mumbai. Basically, L&T Finance Holdings Ltd. is a financial holding company/NBFC that focuses on a range of financial and services to housing, wholesale finance and rural sectors and also mutual fund products and wealth management services from its wholly-owned subsidiaries, namely, L&T Finance Ltd., L&T Housing Finance Ltd., L&T Infrastructure Finance Company Ltd., L&T Investment Management Ltd. L&T Capital Markets Ltd. and L&T Infra Debt Fund Ltd.

L&T Finance Holdings Limited (LTFH) is registered with the Reserve Bank of India (RBI) as a Systemically Important Core Investment Company (CIC-ND-SI). It is one of the best NBFCs in India, and is promoted by Larsen & Toubro Ltd - one of the top companies in India with interests in services related to finance, engineering, construction, IT, electrical and electronics manufacturing and services.

Larson and Toubro Finance Limited provides diverse financial services, including loans for vehicles and home, EMI cards, consumer and durable finance. This NBFC also serves small and medium enterprises through overdraft facilities and term loans.

3. Bajaj Finserv Limited

Bajaj Finserv Limited is an Indian Financial Services company which was established in 2007. Its head office is in Pune. It is basically a deposit-taking non-banking financial company (NBFC) in India.

Bajaj Finserv Limited is engaged in general insurance, commercial lending, consumer finance business and wealth management. Their popular product is an EMI card which offers ‘No Cost EMI’ (with processing fees) facility to many customers.

Apart from this, the company also offers credit cards which can be availed by the customers for welcome bonuses, cash back, high reward points, rewards on online and offline purchases, exclusive discounts, and easy EMI Conversion.

4. HDB Financial Services

Incorporated in 2007, HDFC-bank owned HDB Financial Services (HDBFS) is a leading NBFC which provides both secured and unsecured loans. It serves both Individual and Business Clients. It is regarded as a well-established business with strong capitalization. HDBFS works in the lending business and BPO service areas.

HDBFCs has been accredited with CARE AAA and CRISIL AAA ratings for its long-term debt and bank facilities. Additionally, it has A1+rating for its short-term debt and commercial papers. This makes HDB Financial Services a strong and dependable financial institution.

Its lines of business include lending and BPO Services. In lending services, it offers various secured and unsecured loans to its customers. It offers a one-stop shop for all needs, including investments, protection and loans. With rapid expansion, HDBFS now operates over 1747 branches in 27 states and 4 union territories.

Back office services like form processing, document verification, finance and accounting services, and correspondence management are provided by the company's BPO services section. Additionally, it provides front office services like collection, outbound marketing, and contact center administration.

5. Aditya Birla Finance Ltd

Founded in 1991 and headquartered in Mumbai, Aditya Birla Finance Limited (ABFL) is a subsidiary of Aditya Birla Capital Limited. It offers end-to-end lending, wealth management and financing services to a wide range of customers. ABFL is amongst the largest NBFCs in India based on Assets Under Management (AUM).

Aditya Birla Finance Ltd is registered as an Upper Layer non-deposit accepting NBFC with the Reserve Bank of India (RBI). It caters to a variety of needs of a diverse set of customers across retail, HNI, ultra HNI, micro-enterprises, small and medium enterprises, and mid and large corporates.

The NBFC offers personalized solutions in areas of personal finance, SME finance, corporate finance, mortgage finance, debt capital markets, loan syndication and wealth management.

6. Muthoot Finance Ltd

Headquartered in Kochi, Kerala, Muthoot Finance Limited was established in 1939 by Mr. M.G. George Muthoot. This NBFC provides various services such as foreign exchange, money transfers, travel services, asset management and gold loans. It is the largest gold loan NBFC in India, according to Wikipedia.

The company was converted into a public limited company with the name “Muthoot Finance Limited” on 18 November, 2008. It added 620 new branches during the year 2009-2010. Muthoot Finance purchased the majority of Asia Asset Finance plc, a publicly traded financial services firm based in Sri Lanka, in 2014. Belstar Investment and Finance Private Limited (BIFPL) sold 46.83% of its shareholding to Muthoot Finance in July 2016. Muthoot Money, a non-deposit taking non-banking financial company, was purchased by Muthoot Finance in May 2018.

Awards and recognition received by Muthoot Finance include Skoch Financial Inclusion Award 2013, BFSI Award for the "Most Admired Loyalty Program" in 2012 and Golden Peacock Award for CSR.

The Brand Trust Report 2012, a survey by Trust Research Advisory, ranked Muthoot Finance as the most trusted finance brand in India in 2012. However, Muthoot Finance was ranked as the second most trusted finance brand in India in the Brand Trust Report of 2013, but in the Brand Trust Report of 2014, it was once again ranked as the most trusted finance brand in India.

7. Mahindra & Mahindra Financial Services Limited

Founded in 1991, Mahindra & Mahindra Financial Services Limited is headquartered in Mumbai. It was initially known as Maxi Motors Financial Services, but in 1992, it changed its name to its present name. It is a rural Non Banking Financial Company which provides various services such as vehicle financing, house financing, insurance broking, SME financing, mutual funds, etc.

The Economic Times, in 2022, recognized Mahindra & Mahindra Financial Services Limited as one of best BFSI brands. The NBFC ranked 2nd in the Financial Services Industry (Large Category) by Ambitionbox Best Places to Work in India 2022. The NBFC has an extensive network of approx. 1386+ offices nationwide that serves its growing base of 10 million customers. It prides itself on being able to understand market needs and offer unique solutions with a strong local presence across the country.

Its commitment to corporate social responsibility is quite strong. Improving underprivileged communities and changing rural lifestyles are Mahindra Finance’s primary goals when it comes to CSR. Through initiatives, such as Nanhi Kale and Mahindra Pride, Mahindra Finance encourages financial awareness, sponsors educational programs, and provides scholarships for children.

It actively supports healthcare initiatives, especially those related to cleanliness, safe drinking water provision, and preventative healthcare. Periodically, the company holds blood drives, health screening camps, and ambulance donations for the remote hospitals.

8. Cholamandalam Investment and Finance Company

Founded in 1978, Cholamandalam Investment and Finance Company’s head office is located in Chennai. This company began as an equipment lending business before it grew into a financial services provider. This Non Banking Financial Institution is a part of the Murugappa Group, which consists of 28 businesses in total. It is one of the biggest NBFCs in India.

The core values of Cholamandalam Investment and Finance Company are integrity, passion, quality, respect and responsibility. It initially began business operations as an equipment financing company but today, it has become a comprehensive financial services provider when it comes to home loans, vehicle financing, home equity loans, investment advisory services, SME loans and stock broking among others.

The mission of Chola is to help the customers to lead a better life. The NBFC has a growing clientele of more than 10 lakh satisfied customers across India. It has kept a clear sight of its values ever since it was founded and throughout its growth. The core of these values is a strong commitment to ethics and responsibility toward its customers, shareholders, employees, and society.

9. Sundaram Finance Limited

A prominent member of the TSF group, Chennai-based Sundaram Finance Limited was established in 1954. Sundaram Finance commenced operations with the aim of providing financing for commercial vehicles.

The company began with a paid-up capital of Rs. 2 lakhs and was promoted by Madras Motor & General Insurance Company, which was considered as one of the leading insurance companies in India at the time. Sundaram Finance has a diversified presence in vehicle finance, SME finance, leasing, general and life insurance, mutual funds, construction equipment finance and wealth management services.

The subsidiaries of Sundaram Finance Limited include Sundaram Finance Holdings Limited, Sundaram Home Finance Limited, Sundaram Asset Management Company (AMC), Sundaram Trustee Company Limited, LGF Services Limited, Sundaram Fund Services Limited, Sundaram Finance Employee Welfare Trust, Sundaram Business Services Limited, Sundaram Asset Management Singapore Pte limited, Sundaram Alternate Assets Limited, SAMC Support Services Private Limited and SAMC Services Private Limited.

10. Shriram Finance Limited

Founded in 1979 and headquartered in Mumbai, Shriram Finance Limited (erstwhile Shriram Transport Finance Company Limited) is retail asset financing Non-Banking Financial Company (NBFC). It is a part of the Shriram Group, which is a financial conglomerate.

Shriram Finance Ltd offers various money-related administrations such as stock broking, mutual funds, general protections and so on. It is one of the major organizations for offering funds to business vehicles, such as light duty trucks, heavy duty trucks, construction vehicles and mini trucks.

Shriram Finance comes with a four-decade-long journey of complete faith and commitment to financially empower the underserved sectors of the society, particularly in rural and semi-rural areas. It has branches and outlets in approx. 3,600 sites with over 5700 employees. Shriram Finance provides services to more than 6.7 million customers. Its goal is to be India’s most preferred financial service destination,

Conclusion

We provided you with a List of Top 10 Non-Banking Financial Companies in India in this blog post. These NBFCs are Tata Capital Limited, L&T Finance Ltd, Bajaj Finserv, HDB Financial Services, Aditya Birla Finance Ltd., Muthoot Finance Ltd., Mahindra Finance, Sundaram Finance, Shriram Finance and Cholamandalam Investment and Finance Company. In today’s time, these NBFCs have become a favorable choice for many individuals and businesses for securing financial and banking services. They provide credit and other financial services to parties which are usually not served by the traditional banks. Need assistance in NBFC Registration? Connect with Registrationwala.

Disclaimer: The rankings mentioned in this blog post ‘Top 10 NBFCs in India’ are based on the author’s personal opinion, and do not correlate to any official rankings.

Top 10 NBFCs in India