We Corpstore Business Solutions is one of the leading business services platform that offers you NBFC registration in Madurai and Karur. Non-Banking Financial Companies (NBFCs) are fast emerging as an important segment of the rapidly-growing Indian economy. NBFC offers almost all services that banks do including performing financial intermediation, accepting deposits, giving cash advances, offering loans, leasing, hiring purchase, etc.
Due to the lack of banking institutions in many areas and increasing demand for loans NBFC more and more people are able to have a profitable business in India than ever before. Moreover, NBFC can raise funds from the public, directly or indirectly, and can freely allow them to ultimate spenders. Non-Banking Financial Company is a company incorporated under the Companies Act, 2013 or The Companies Act 1956 which is engaged in financial activities comparable to that of a bank. The types of NBFCs are Asset Finance Company (AFC), Investment Company (IC) and Loan Company (LC). Mutual benefit finance company, Infrastructure finance company, Micro finance institution etc.
A Non-Banking Financial Company carry out all the functions which are similar to that of a bank, yet it is not classified as Banks and differs in the following ways:
According to the provisions of Reserve bank of India Act, 1934, no NBFC can carry out the activities of a non-banking financial institution without- Having Net Owned Funds of Rs. 2 crores.