NBFCs provide banking facilities and financial services but their functioning and purpose are very different from the legal interpretation of a Bank. NBFCs are covered under Banking regulations which are set by Reserve Bank of India.
They provide banking services such as credit facilities, retirement planning, loans, TFCs, stocking and investing in the market. However, they cannot take any kind of deposits from the public.
Here is the List of Best NBFCs:
1. Power Finance Corporation Limited
Power Finance Corporation Limited, established in 1986 is a Navratna Status Company. It is headed by Mukesh Kumar Goel. This company provides financial assistance to the various power projects of India.
It supports the organizations which are involved in Power generation, its transmission and distribution. This company is listed in Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
2. Shriram Transport Finance Company Limited
Shriram Transport Finance Company Limited is one of the best NBFCs which targets business and commercial vehicles.
This company has been offering fund services for Heavy Duty Trucks, Light Duty Trucks, Passenger Vehicles, Mini Trucks, Construction Vehicles as well as Farm Vehicles, since 1979.
3. Bajaj Finance Limited
Bajaj Finance Limited is a part of Bajaj Holdings and investments and was founded in 2007; since then it has emerged as one of the best NBFCs of India.
This company offers gold loans, home loans, individual loans, entrepreneur and business loans, and they also offer loans to doctors for their career enhancement. Furthermore, it covers general insurance, wealth advisory and money lending.
4. Mahindra & Mahindra Financial Services Limited
MMFSL was founded in 1991 and now it has more than 1000 branches in the country and customer base of 3 million which makes it one of the best NBFCs. This company has two affiliates which offer rural housing finance and insurance services.
Apart from these, it offers vehicle advances, gold advances, home credits, working capital advances, corporate advances and more.
5. Muthoot Finance Ltd
Muthoot Finance Ltd. is India’s very first NBFC established in 1888 in a small village of Kerala. This is one of the best NBFCs in the country.
It offers loans in exchange for gold ornaments, foreign exchange services, wealth management services, money transfers, tourism and travel services. This company operates more than 440 branches across the country and Muthoot Housing Finance is one of its units that offer home loans.
6. HDB Finance Services
HDFC Bank operates HDB Finance Services. It offers a wide range of secured and non-secured loans including business loans, doctor loans, personal loans, auto loans, credit loans, gold loans, tractor loans and many more.
HDB operates through a well-knit network of over 1000 branches spread throughout the country. It has shown rapid growth in the market which makes it one of the best NBFCs in India.
7. Cholamandalam Finance
Cholamandalam Investment and Finance Company Limited were established in 1978 as a unit of Murugappa Group and it now has 725 branches all over India.
This company started as an equipment financing service provider which offers home loans, vehicle finance, home equity loans, investment advisory loans, SME loans and several other financial services.
8. Tata Capital Financial Services Ltd
Tata Capital Financial Services Ltd. tops the list of best NBFCs. It was founded in 2007 as an arm of Tata Sons Ltd. It is a non-stop provider of financial services that fulfil the needs of retail, institutional and corporate customers of the country.
It specializes in offering infrastructure management, wealth management, home loans, commercial finance and consumer loans. It also covers the distribution and the marketing of Tata cards.
9. L & T Finance Limited
L&T Finance Limited is one of the strongest players in the financial sector. It was founded in 1991 with its headquarters in Mumbai.
This company offers financial services to sectors such as industry, trade, and agriculture; it specializes in individual loans, commercial loans, rural loans and vehicle loans. It was declared as ‘Company of the Year’ in 2010 at Economic Times Awards.
10. Aditya Birla Finance Ltd.
Aditya Birla Finance Limited is an arm of Aditya Birla Financial Services that was established in 1991. RBI has registered ABFL as ‘a systemically important non-deposit accepting NBFC’. It ranks amongst the best NBFCs in India.
It offers customized and precise solutions; from commercial mortgage to corporate finance and from structured finance to capital markets.