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NBFC (Non-Banking Financial Company)
Non-banking financial companies lend money and offer financial services but do not hold a banking licence, so most cannot take ordinary deposits or offer cheque books. They include housing finance companies, gold loan firms, microlenders and consumer finance lenders.
Why It Matters
NBFCs reach borrowers banks often ignore, from small traders to first-time buyers of a phone on EMI.
In India
Bajaj Finance, Tata Capital and Muthoot Finance are NBFCs. RBI rules require the largest NBFCs to list on the stock market, which is partly why Tata Capital went public in 2025.
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