Types of NBFC

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·         Asset Finance Company (AFC)

The major role of those corporations is to finance the assets like machines, cars, generators, material equipment’s, industrial machines etc.

·         Investment Company (IC)

These companies deal in securities and its acquisition.

·         Loan Companies (LC)

The main business of such a corporation is to produce finance by creating loans or advances or otherwise for any activity apart from its own. It does not embrace Associate in Nursing AFC (Asset Finance Company).

·         Infrastructure Finance Company (IFC)

IFCs are firms with internet owned funds of, at least, Rs.300 large integer and people United Nations agency have deployed 75% of its total assets in infrastructure loans. It has to have a credit rating of A or higher than and a CRAR of 15 August 1945.

 

·         Systemically Important Core Investment Company (CIC-ND-SI)

Such NBFCs have associate degree quality of Rs.100 core and on top of, and have deployed a minimum of 90% of its assets within the style of investment in shares, debt instruments or loans in cluster firms.

 

·         Non-Banking Financial Company or Micro Finance Institution (NBFC-MFI)

NBFC-MFI encompasses a minimum of 85% of its assets within the kind of microfinance. This microfinance has to be within the kind of loan given to those with AN annual financial gain of Rs.60, 000 (in rural areas) and Rs.120, 000 (in urban areas). These loans should not exceed Rs.50, 000 and the tenure must not be but 24 months. In addition, the loan has to be sanctioned while not collateral. Here, the burrowers have to be compelled to repay the loans in instalments weekly, fortnightly or monthly, as agreed.