There are many NBFCs available in India, which offer loans to individuals. However, it can be tricky to choose the right one. To help you out, we have listed ten of the best ones in the country. Whether you are looking for a personal loan or business loan, these companies will be able to help you out.
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M&M Finance
One of the best NBFCs in India is M&M Finance. It provides loans to individuals and SMEs, and offers various financial services. For instance, it provides home loans, corporate advances, vehicle financing, and auto loans.
The company has nearly 2,000 branches and is headquartered in Bengaluru, but it also has several subsidiaries. A subsidiary, M&M Rural Housing Finance Ltd, is wholly owned by the company. Another, LKP Securities Limited, allows investors to create an investment portfolio.
The company is among the top five private diversified NBFCs in the country. It primarily caters to the middle-income segment in India. However, it has expanded its services to other types of borrowers.
Its business portfolio includes auto finance, business vehicles, and utility vehicles. Besides these products, it also has a small but growing housing finance portfolio.
M&M Financial’s quarterly disbursement rose 79 per cent from the previous year. This growth was driven by a broad base of customers. Additionally, the company’s collection efficiency oscillated between 95 and 97 percent for the past four months.
M&M Financial has also formed a wholly owned subsidiary, Mahindra Insurance Brokers Ltd, to handle insurance activities. In addition, the company has an active marketing campaign.
As a result of this, M&M Financial’s profits fell 55 per cent from the previous year. Nonetheless, it expects collections to continue to be steady. Moreover, the company’s gross business assets have grown 12 percent year-over-year.
Muthoot Finance
Muthoot Finance is one of the best non-banking finance companies in India. It offers home loans, gold loan and wealth management services. The NBFC has a wide portfolio that includes vehicles, utility vehicles, business and passenger vehicles, personal loans and corporate advances.
A member of the Murugappa group, the company started in 1978 as an equipment and instrumentality financing service provider. Over the years, the company has grown to become a comprehensive financial services provider. Today, it has over 550 branches across the country.
Muthoot Housing Finance (India) Ltd, a subsidiary of Muthoot Finance, is a home finance provider with 440 branches. These are located in 24 Indian states. With a strong brand, the company regularly uses print and radio media to target customers.
Muthoot Finance, which is a part of Tata Sons Limited, has a presence in several markets in India. Besides its branches, the NBFC also has subsidiaries in Sri Lanka.
As the economy opens up, demand for diversified products is on the rise. This is reflected in the growth of the vehicle finance and personal loan portfolio. In addition, the NBFC has also managed to maintain its presence in the affordable housing finance sector.
Muthoot Housing Finance recently launched the second season of its Muthoot Sunheri Soch campaign, which features actor Amitabh Bachchan. According to the company, it helped two million people own their homes.
Shriram City Union Finance Limited
Shriram City Union Finance Limited is an Indian Non-Banking Financial Company (NBFC) based in Chennai, Tamil Nadu. The company provides loans for passenger and commercial vehicles, consumer durables and two-wheelers. It also offers loans for small-scale and micro-enterprises.
It is a part of the Shriram Group, India’s largest financial conglomerate. The group has a stronghold in asset management, chit funds, commercial vehicle financing and retail financing.
Shriram Transport is the largest financier of commercial vehicles in the country. It has a loan book of about 1.7 trillion rupees. Founded in 1979 by legendary Shri R Thyagarajan, the company has a very deep understanding of the commercial vehicle finance industry.
Shriram Transport’s post-merger plan includes cross-sell programs. Also, the company plans to roll out personal loans from its branch network. In addition, it will focus on meeting local business lending requirements.
Shriram Transport’s management team has been with the company since its inception. This is a great sign of confidence for the company. But it also means the company will have to deal with intense competition.
Besides commercial vehicle financing, the company offers small-ticket personal and small-scale business loans. Its borrowers have access to a range of products, such as gold loans, small business loans, and pre-owned car loans.
It has over 650 branches across the country and has a presence in both urban and rural areas. It has a good credit rating and is a leading NBFC in the two-wheeler segment.
L&T Financial Services
L&T Financial Services has a diverse portfolio of financial services. Its offerings cover five business verticals. Among its products are financial solutions, wealth management, infrastructure finance and home loans.
The company is headquartered in Mumbai and has operations across the country. In addition to the company’s various financial services, it also has a strong CSR portfolio. Some of its achievements include winning the Oracle Excellence Award for Cloud Platform Innovation, being ranked as a top-notch NBFC in India and being recognized as a leading renewable energy financier by the RE – Finance Awards.
Apart from this, it has a strong client base and offers a wide range of financial services. It has launched a digital business, offering loan products for businesses and personal loans to individuals.
The company is currently ranked among the top ten NBFCs in the nation. Its net income has been consistently rising from the year FY2017 to the year FY2019.
It is also the parent company of Muthoot Housing Finance (India) Ltd. The company has 440 branches all over the nation.
In addition to this, it has two subsidiaries that provide rural housing finance. It also has an extensive bill discounting portfolio for SMEs. Other products of the company include vehicle advances, gold loans and working capital loans.
This is the only NBFC in India to be launched by an engineering firm. The company has an entrepreneurial mindset and is mentored by stalwarts of the industry.
Recapita Finance
If you are looking for a flexible financing partner, then you should consider a Non-Banking Financial Company like Recapita Finance. The company has a great reputation for providing loans that are easy to obtain. Moreover, it provides loan schemes that suit the needs of different customers.
Recapita Finance Private Limited was incorporated in the year 2016. Its promoter, Amit Jain, has a long experience in the banking and financial sector. He also holds a qualification as a Chartered Accountant.
Recapita offers mortgage, personal and gold loans. You can avail of these products online and get instant approval. Besides, the company has a wide network of branches across the country.
As a member of the Equifax Institute, Recapita can help you obtain an accurate credit report. In addition, the company is a member institute of TRIF.
In addition to providing personal and gold loans, the company has also launched a number of other products. For example, they offer mortgage loans, corporate HR loans, and other specialized loans. Additionally, the company’s loans are backed by a strong portfolio and reasonable credit.
To register as a NBFC, you must meet certain requirements. These include having a minimum of 500 crore in assets. This may not be possible with some NBFCs.
NBFCs can be regulated by the Reserve Bank of India. However, there are some exemptions for companies in the financial business.
ZipLoan
A fast-emerging NBFC, ZipLoan provides easy access to credit for Indian MSMEs. This fintech company operates in six cities in India, including Delhi, Bengaluru, Mumbai and Pune. The company offers unsecured business loans for MSMEs, startup companies, and small enterprises.
ZipLoan has received funding from several investors, such as Waterbridge Ventures, Whiteboard Capital, Matrix Partners India, and Elevation Capital. Its Managing Director, Shalabh Singhal, worked with Goldman Sachs, and started the company in 2015.
ZipLoan has already disbursed close to INR 150 crore in loans to 3500 MSMEs, and plans to scale its operations in other cities. In fact, it is looking to raise another Rs 250 crore in debt.
The company uses its own proprietary ZipScore platform to assess the creditworthiness of borrowers. According to the firm’s website, its non-performing assets have been under 2%.
ZipLoan offers flexible repayment tenures ranging from 1 to 3 years. Besides, the interest rates are very attractive. They are between 1% and 1.5% per month.
Applicants can apply for a loan online, and the loan will be processed within three working days. During the loan approval process, the applicant will be required to submit an application form along with the necessary documentation. After that, a representative from ZipLoan will contact the applicant. He or she will collect the documents and upload them in a PDF format.
ZipLoan is a NBFC that provides loans for a variety of purposes. For instance, it offers loans for businesses for working capital, and also for buying new machinery or equipment.
