NBFCs play a crucial role in the development of transportation, terms of job creation, as well as productive investment by engaging in and offering a boost to these sectors. They also give loans to rural sectors of the population as well as economically disadvantaged sections of society. Consumers benefit from the services provided by NBFCs in India, which include financial support and counseling. Here are top four NBFCs you must know about –
Bajaj Financial Services
The Indian financing firm Bajaj FinServ Limited, which is a significant component of Bajaj Holdings as well as Investments Limited, is one of the corporation’s primary components and top NBFC in India. This corporation provides a wide range of financial services to the general public, including general insurance, health insurance, and a variety of other products and services within the finance industry. The company also provides services such as gold loans, individual loans, house loans, business and entrepreneur loans, among other things. Additionally, they give financial arrangements, particularly for physicians, to enable them to further their professional development.
Muthoot Financial Services
Muthoot Finance, a Kerala-based company that is very well known for its own gold loans, has its headquarters in Kochi. Muthoot Finance, in addition to providing gold loans, also provides foreign exchange services, transfers of money, asset management services, and travel and tourist services. Gold coins are also available for purchase at Muthoot Finance locations. The corporation has over 4,400 outlets spread throughout 24 states in the United States of America. Also, Muthoot Housing Finance (India) Ltd is a subsidiary of the corporation. This company provides housing loans and is counted among the NBFCs in India.
Kotak Mahindra Finance Limited
Kotak Mahindra Finance Limited is among India’s top prominent private sector banks and is headquartered in Mumbai. The company’s headquarters are in Mumbai. Since the Kotak Mahindra Bank is indeed the principal subsidiary of the Kotak Mahindra Finance, the latter’s name is far more well-known than the former!
The Kotak Mahindra Bank was established in 2002, but it was not until February 2003 that it was granted a license by the Reserve Bank of India to operate as a private functioning bank. Personal loans, financial services, health insurance, corporate finance, and a variety of other services are available through the company.
HDB Financial services
As a result, HDB has reached new heights and has established itself as one of India’s most dependable non-banking financial institutions. Currently, HDB has official branches in 22 states and three union territories in India, according to the organization. This renowned firm also has been granted the AAA rating by CRISIL & CARE as a result of its dedication to meeting the demands of its customers and providing them with the greatest possible amenities.
Almost from the beginning of its existence, this NBFC in India has demonstrated a constant track record of development. As of the conclusion of the fiscal year 2018, the firm had a profit rate of 36%, and its sales had climbed by 24%, demonstrating that it is one of the most prospective financial service solutions on the market today.
How NBFCs affect the Indian economy
The status of a country’s infrastructure defines the economy of that country. Non-banking financial companies (NBFCs) provide a significant contribution to the national economy by lending capital to the infrastructural development, which is extremely important in a growing country like India. Because an infrastructure endeavor takes a huge amount of cash and generates revenue over a longer period of time, such projects are considered high-risk whenever it comes to lending. Because of this, banks have refrained from funding infrastructure projects in recent years. Furthermore, NBFCs in India have made greater contributions to infrastructure lending.
NBFC in India holds a crucial part in the growth of the Indian economy, and as per the data available, it will be getting stronger with time. As an investor, finding the top NFBC and starting investing in the right stocks should be on your to-do list.