Top 10 NBFCs in India in 2022

1. Tata Capital Financial Services Limited

Tata Capital is Tata group’s financial services arm and one of India’s best NBFCs. It provides a wide range of financial products and services to retail, corporate and institutional customers. Its product offerings include home, car, two-wheeler, personal, business, and other loans.

It also offers commercial finance for small and medium enterprises (SMEs), deposit products, wealth management services, insurance, and forex and international trade services. Tata Capital also has a presence in real estate financing through its wholly-owned subsidiary, TC Realty Finance Limited.

2. Bajaj Finance Limited

Bajaj Finance is one of the largest NBFCs in India, focusing on lending to individuals and small businesses. The company offers a range of financial products, including personal loans, home loans, two-wheeler loans, loans against property, , credit cards, and deposits. Bajaj Finance also provides its subsidiaries with OTC derivatives trading solutions and investment banking advisory services. In recent years, the company has made forays into the digital lending space with the launch of its mobile app ‘Bajaj Finserv Experia.’

3. Flexiloans

FlexiLoans is an online lending platform that offers collateral-free working capital loans & Business Loans to SMEs and MSMEs. The company disburses loans in a matter of hours, with minimal documentation. FlexiLoans has a network of over 1 million borrowers and has so far disbursed over INR 3,500 crore to more than 10,000 small businesses across India.

4. M&M Financial Services Limited

A part of the Mahindra Group, this company provides financing solutions to individuals and businesses. M&M Financial Services offers loans for two-wheelers, three-wheelers, four-wheelers, agriculture and construction equipment, as well as business loans. The company has a network of over 1,200 branches and 3,500 dealers/distributors across India.

5. L&T Finance Holdings Limited

L&T Finance Holdings is the financial services arm of engineering conglomerate Larsen & Toubro (L&T). The company provides various financing solutions, including retail, rural, infrastructure, and corporate finance. L&T Finance Holdings also offers deposit products such as fixed deposits (FDs) and recurring deposits (RDs). The company has a network of over 1,000 branches and 2,500 customer touchpoints across India.

6. Magma Fincorp Limited

Magma Fincorp is an NBFC focusing on lending to individuals and small businesses. The company offers a range of financial products, including personal loans, home loans, two-wheeler loans, loans against property, , credit cards, and deposits. Magma Fincorp also provides OTC derivatives trading solutions and investment banking advisory services through its subsidiaries. The company has recently entered the digital lending space with its ‘Magma Loans’ app.

7. Repco Home Finance Limited

Repco Home Finance is an NBFC that provides housing finance solutions to individuals, small businesses, and corporates. The company offers home loans, loans against property, construction finance, and deposit products such as fixed deposits (FDs) and recurring deposits (RDs). Repco Home Finance has a network of over 200 branches across India.

8. Cholamandalam Investment and Finance Company Limited

Cholamandalam Investment and Finance Company is an NBFC focusing on lending to individuals and small businesses. The company offers a range of financial products, including personal loans, home loans, two-wheeler loans, loans against property, , credit cards, and deposits. Cholamandalam also provides OTC derivatives trading solutions and investment banking advisory services through its subsidiaries.

9. HDB Financial Services

HDB Financial Services is a part of HDFC Bank and India’s leading NBFC in terms of market worth. It has a vast network throughout India. It offers its customers personal, home, business, and other financial products and services.

HDB Financial Services strongly focuses on customer service and offers its customers a wide range of value-added services.

10. Aditya Birla Capital Limited

Aditya Birla Capital is the financial services arm of the Aditya Birla Group, one of India’s leading business conglomerates. It is one of the largest NBFCs in India, providing various financial services, including retail, rural, infrastructure, and corporate finance. Aditya Birla Capital also offers deposit products such as fixed deposits (FDs) and recurring deposits (RDs). The company has a network of over 1,000 branches and 2,500 customer touchpoints across India.

The companies mentioned above are some of the best NBFCs in India.

The future of NBFCs – in the new normal

The COVID-19 pandemic has brought about unprecedented challenges for businesses across the world. The Indian economy has also been impacted adversely by the pandemic. The lockdown imposed to contain the spread of the virus has led to a sharp decline in economic activity.

However, it is essential to note that the impact of the pandemic on NBFCs has been relatively less compared to other sectors such as aviation, hospitality, and tourism. This is because NBFCs have a diversified customer base and are not reliant on a single industry for their growth.

It is expected that NBFCs will play a vital role in the country’s economic recovery. They are well-positioned to support the government’s initiatives such as ‘Make in India’, ‘Digital India’, and ‘Housing for All by 2022’.

NBFCs have also started adopting new technologies such as artificial intelligence (AI) and big data analytics to further improve their efficiency and performance. This will help them to better serve their customers and tap into new growth opportunities.

Conclusion

NBFCs play an essential role in developing the banking sector in India. They are well-positioned to support the government’s initiatives and contribute to the country’s economic recovery. 

In addition, NBFCs are adopting new technologies to improve their efficiency and performance. This will help them to better serve their customers and tap into new growth opportunities.

Are you looking for a Business loan? FlexiLoans offers unsecured business loans at low-interest rates. Our online application process is quick and easy, and you can get pre-approved in just a few minutes! So what are you waiting for? Apply for a at FlexiLoan today!

The post What are NBFCs? Which are India’s top NBFCs? appeared first on FlexiLoans Finance, Business Loan Blogs, Tips & Guide.

Legacy enterprises with deep pockets get the lion’s share of India’s largely restricted credit vehicle, driven mainly by legacy lenders like banks. Banks and legacy lenders blame credibility as a show-cause for not providing loans to small businesses. Enter: microfinance companies and fintech. Hailed as heroes in India’s credit-starved market, fintech and microfinance companies are overturning the lending game in India’s micro, small, and medium enterprise (MSME) scene. Keep reading to learn more about how you can finance your business by leveraging a microfinance company in India.

What is Microfinance?

It is challenging for a small business person to get a traditional bank loan. Microfinancing can be a perfect solution for small businesses and entrepreneurs. Microfinance is often explained as providing essential financial services, such as granting working capital loans, insurance claims, and so on, to small entrepreneurs or low-income business owners when they don’t have the opportunity to get traditional business loans. The objective of providing microfinance is to help small businesses expand and make them capable of applying for a traditional loan.

The microfinance companies in India lend money to the applicants based on mutual trust and confidence, thereby creating a solidarity economy. A committee is usually formed by the microfinance company that examines the business loan eligibility criteria of the applicant, their repayment capacity, and so on.

Which Are the Microfinance Companies in India?

Several financial lending institutions in India provide microfinance facilities. As per reports, India has 113.1 million microfinance business loan accounts as of March 2022. 

The top microfinance companies in India are as follows:

1. Equitas Small Finance

2. Fusion Microfinance Pvt. Ltd.

3. Annapurna Microfinance Pvt. Ltd.

4. BSS Microfinance Ltd.

5. Cashpor Micro Credit

How to Get Loans from Microfinance Companies?

The process of getting microfinance varies between the different microfinance companies operating in India. The following is the list of some documents which are usually required to submit along with an application to a microfinance company:

• Application form

• Proof of the location of your business

• PAN card of the owner/business

• 2 passport-size photos of the owner

• ITR of the 2 preceding financial years

• Audited books of the 2 preceding financial years

• Bank account statement for last 6 months

• Invoice of the asset to be financed

• Professional certificate, if applicable

The examination of loan eligibility criteria by microfinance companies is not as tight as other traditional banks. Microfinance companies believe more in analysing human criteria instead of financial criteria. The repayment periods in microfinance are much more flexible than in banks because they also offer weekly repayment periods.

How to Get the Microfinance Application Approved?

It is observed that the applications of business owners get rejected for several reasons. These are the steps that you can keep in your mind to ensure that your microfinance loan application gets approved by the microfinance companies:

• Ensure basic eligibility criteria – Many people apply for microfinance loans without ensuring that they meet the basic eligibility criteria, which leads to the rejection of the application. The applicant for microfinance must qualify for the age criteria of 24-72 years.

• Avoid applying at multiple microfinance companies – People apply at multiple microfinance companies to increase their chances of getting a loan online. But this proves to be a failure because the companies come to know the number of places where you have applied for microfinance, which is a hindrance in the entire process.

• Define your vision and mission – The microfinance companies are keen to know how much interest a person is taking in expanding the business. You must write about your vision and mission in the business plans in clear and exciting terms that interest the microfinance companies. These companies want to work with people who are interested in the success of their business.

Conclusion

If you are a small entrepreneur who doesn’t have a solid financial background or assistance, then microfinancing can be an excellent option for you. If you follow the steps mentioned above and apply for the microfinance loan with the correct application information, there is a high chance that you will get the loan from the microfinance company. Several microfinance companies in India can help you expand your business with microfinancing. You can also go through the ways of repayment of loans to ensure a smooth process. This article explained the entire process of financing from microfinance providers.

You can also visit Flexiloans to learn more about such loan facilities. We offer you business loans and MSME loans to expand your business. We provide hassle-free services with minimal documentation. Focus on scaling your business with our assistance.

Frequently Asked Questions:

1. What is microfinance?

Microfinance provides loans and other financial services to small businesses, otherwise credit-starved, to let them expand on a large scale.

2. What are some microfinance providers in India?

• Equitas Small Finance

• Fusion Microfinance Pvt. Ltd.

• BSS Microfinance Ltd.

3. Do I need to provide a guarantee to get microfinance?

Yes, it is advised to give collateral security or guarantee to build trust in the eyes of the lender.

The post How To Get Finance From Micro Finance Companies In India? appeared first on FlexiLoans Finance, Business Loan Blogs, Tips & Guide.

We are living in an era of unprecedented disruption. Newer technologies are finding their way to legacy industries like education, commerce, financial services, insurance, and many more. Blockchain is not a buzz word but a real step to the digital revolution in the finance industry. Some say that it is the next Internet and possibilities are endless.

FUTURE TECH HACKATHON

There are many leaders in the industry who are early adopters of these technologies and one of them is FlexiLoans. This Mumbai based digital lending platform doesn’t leave any stone unturned to disrupt the financial services. This comes with evidence to the fact that FlexiLoans had recently joined hands with leading capital market participants viz. NSE, BSE, MSEI, CSDL. NSDL and Elemential Labs to co-host an event based on redefining the Capital Markets with Blockchain over the weekend of 8th and 9th September 2018 in its headquarters.

The event was graced by MD & CEO of NSE, Vikram Limaye himself who was accompanied with a panel of judges that included industry experts like Abhishek Kothari (Co-Founder, FlexiLoans.com), Joydeep Dutta (EDO & CTO, CSDL), Anil Kumar Verma (AVP, CSDL), Sunil Batra (SVP, NSDL), Devanshu Desai (Head-Tech, MSEI).

This was fourth in the series of Future Tech Hackathon focusing on enabling transparent and efficient capital markets by leveraging Blockchain Technology. This hackathon saw a footfall of 170+ tech-enthusiasts distributed in 30+ teams participating to win prizes amounting to Rs. 10 Lakhs, the highest ever offered till date.

The mandate to the participants was to leverage blockchain DLT to disrupt a use case within financial services, especially capital markets and trade finance. The winning teams came up with great solutions to the problem statements especially relating to Tokenisation of assets, Real-time Monitoring of trades and loan disbursements, and blockchain powered trade finance systems.

FASTER LIQUIDITY OF ASSETS

One of the projects aimed at providing faster liquidity of assets, thereby, ensuring quick settlement of the transactions and a secure “Ownership ledger”. This included development of platform that tokenizes assets into equivalent worth of ERC20 tokens so that multiple investors can invest in same asset with any amount of money. Imagine, one can partly own/invest in a piece of land for just $100 or $10. Other use-cases are: Debt Syndication and crowdfunding.

SMART CONTRACT SOLUTION

While, the other project gave a smart contract driven solution on Ethereum blockchain which streamlines the whole process and provide transparency, visibility, smooth settlements and reliable documents sharing over secured IPFS. Currently the process is very cumbersome. The project took the use case of Syndicate Loans and provided Blockchain based solution for it naming it as “Smart Syndicate Loans”.

SEAMLESS VENDOR FINANCING

Likewise, another project was a solution built for a private Blockchain network with possibilities to integrate API banking and data integration with ERPs for seamless process by proposing a vendor financing Blockchain platform that can maintain constant data sync between buyers, suppliers and financiers to enable faster invoice approvals and discounting processes. Moreover, it could track and prevent any cases of double spend or unauthorised invoices.

ABOUT US:

FlexiLoans is one of the leading Digital Lending Platforms for small businesses. It was started with an endeavour to solve the problems that small businesses face in accessing quick, flexible and adequate funds for growing their businesses. They are the leaders in using advanced data science and cutting edge technology that focus on alternate / surrogate methods for scoring customers. Till date, it has disbursed loans to small businesses across 1000+ cities with a completely branchless model.

The post LATEST UPDATES ON FUTURE TECH HACKATHON BY FLEXILOANS appeared first on FlexiLoans Finance, Business Loan Blogs, Tips & Guide.

Manish Lunia speaks about starting an online lending business in spite of being in this competitive environment of banks and loans looking to extend their loan books. He describes how the co-founders of FlexiLoans.com all come from business backgrounds with enough research on banks. There are several small and medium enterprises that are still having a hard time with getting loans from banks. A large number of SME’s who have just started out might not maintain their books of accounts to perfection but have strong cash flows and a sound business model and in spite of that, might not get funding. This is where FlexiLoans.com breaks boundaries, and as a digital lending platform, it provides quick collateral and hassles free loans with minimal documentation to small and medium enterprises across India requiring small loan amounts for a short tenure.

Flexi loans serve more than 2 million small businesses across cities in India. FlexiLoans.com partners with large platforms where these small and medium term enterprises sell their products, like Flipkart, Snapdeal, Jabong, Voonik to name a few. Sellers from these platforms apply for loans on FlexiLoans.com.com, and on the basis of logical parameters and an inbuilt algorithm, the loan is given. Thus FlexiLoans.com helps to provide SMEs with funds, to fulfill their working capital needs.

The post INSIGHTS INTO ONLINE LENDING BY MANISH LUNIA appeared first on FlexiLoans Finance, Business Loan Blogs, Tips & Guide.