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Non-banking financial companies (NBFCs) are a type of financial institution that provides banking and other financial services to customers without accepting deposits. NBFCs differ from banks in several ways, including their regulatory environment, their mode of operation, and the types of services they offer.
NBFCs are subject to regulation by the Reserve Bank of India (RBI), the country’s central bank. Banks are subject to more stringent regulations than NBFCs, which allows NBFCs to be more flexible in their operations. NBFCs can provide a wide range of financial services, including loans, credit, savings, insurance, and investment products.
The growth of NBFCs has been spurred by the rise of the informal economy and the need for financial services in rural areas. NBFCs have also been able to tap into new markets, such as small businesses and farmers, that banks have been unable to reach.
The RBI has introduced several measures to promote the growth of NBFCs and to ensure that they are regulated in a manner commensurate with their risks. These measures include setting up a separate department for NBFCs within the RBI, establishing risk-based supervisory guidelines, and introducing a regulatory framework for systemically important NBFCs.
NBFCs play an important role in the Indian economy and are expected to continue to grow in the years to come.
20 Top Finance Companies in India
In this article, I will talk about the financial companies that are cutting the edge and making themselves a position among the top 20 companies.
We will be talking about their services, how they started, and what is their principle of operation. We will also talk about their philosophies as well as subsidiaries and featured services provided by them.
Bajaj Finance Limited is the best financial company in India, they have a huge market presence with over 2,500 offices across the country, and this is not just limited to cities but they are also widely spread in rural areas.
They provide you with all domains of financial services which includes vehicle financing, lifestyle finance, loans against property, instant personal loan, and loan against consumer durables.
Bajaj also provides you with SME Loans, Gold Loans, and Rural Finance. Their subsidiary is Bajaj Financial Securities Ltd which provides a lot of capital market solutions to high-end individuals/families and corporates.
Mahindra started its financial services initially for Mahindra vehicles only in the 90s. But as years passed, they added several products to their portfolio including finance for new and pre-owned vehicles.
The company provides finance for SMEs and Projects along with equipment finance and working capital finance. M&M Finance also deals with customized personal loans, fixed deposits, and mutual funds.
Mahindra has a huge customer base, and a widespread presence across all the states in the country, with around 1,500 offices. Its unique policy is that of “Earn and Pay” which helps people in different segments of economical groups.
The Housing Development Finance Corporation is the most renowned private bank in India when it comes to the top finance companies in India providing specialization in home loans. They provide services like home loans, plot loans, loans against property, NRI home loans, and house renovation loans.
HDFC has always placed a high priority on technology, and it was the first business to computerize the home loan application process.
In addition to providing a variety of post-disbursement online services, it now has built-in features that let consumers apply for loans online at their convenience.
Muthoot Finance is among the oldest finance companies in India, about 80 years. They provide a large number of financial services like housing finance, personal loans, insurance, mutual funds, and NCD however, they specialize in Gold Loans. Their gold loan starts from the meager amount of ₹1,500/- and goes up.
Muthoot also provides you with vehicle loans, big business loans, and corporate and SME Loans. The organization works on convenience and aims at creating balance; and has created a good market reputation and valuable customer base by its belief in “From excess or scanty, to appropriateness”.
L&T Finance is promoted by the parent company Larsen and Toubro Ltd. It is a multifaceted finance company in India that provides you with financial services and products like equipment finance, microloans, consumer loans, real estate, home loans, and infrastructure finance.
The company operates with the motto of scalability and sustainability and aims to lead the country toward newer and sustainable opportunities in terms of roads, renewables, and transmission. It has a presence in around 21 states and a customer base of around 1.5 Cr customers.
Aditya Birla Finance Limited is a subsidiary of Aditya Birla Capital Limited and provides its customers with a 360-degree finance solution. It is among the best finance companies in India and offers not just financing but wealth management and lending solutions also.
The company provides microfinancing, debt capital markets, corporate finance, and loan syndication.
One USP of ABFL is their online financing platform called ABFLDirect.com; this is a special feature for MSME customers as it is a very efficient and smooth way of availing all financial services.
They operate by the motto “To be a leader and role model in a broad-based and integrated financial services business.”
Earlier known as Magma Fincorp Limited, this Poonawalla Fincorp Limited provides a diversified product portfolio that includes services like personal loans, business loans, professional loans, loans against property, medical equipment loans, and loans against pre-owned vehicles.
Poonawalla finance company focuses primarily on consumer and MSME financing. Their way of operation is that they aim to provide the best services to their customers and they work with the highest integrity.
It has offices in 19 states and about 250 branches and they stand by the motto of ‘Passion, People, Purpose, Principles, and Possibilities.
The financial services division of the Murugappa Group was incorporated in 1978. Cholamandalam Investment & Finance Company Ltd started as an equipment financing company but has since grown into a full-service financial services provider that offers customers vehicle financing, home loans, home equity loans, loans for small and medium-sized businesses, investment advisory services, stock broking, and a range of other financial services.
It lies among the top financial companies in India with around 1,200 offices across the country. They provide services like vehicle loans, home loans, SME loans, rural and agriculture loans, and wealth management.
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HDB Financial Services is one of the best financial companies in India that aims to cater to the needs of the new India and its aspirational citizens.
They provide clients with a vast selection of secured and unsecured loans and offer a one-stop solution for all needs, including protection, investments, and loans.
With more than 1,300 Branches scattered over 24 States and 3 Union Territories, they acquired a good position in the country quite early. Their services include gold loans, doctor’s loans, business loans, loans against property, and enterprise business loans.
Shriram Transport Finance Company Limited is among the oldest finance companies in India. They have a very vast portfolio of services which include commercial vehicle financing business, life and general insurance, stock broking, chit funds, and distribution of financial products and mutual funds.
They wanted to give wings to the aspirational Indian, their company started by helping small truck owners in buying pre-owned trucks, and from there till today Shriram has touched the skies with flying colors. They have ever since maintained the criteria of helping the common man and helping him prosper in life ahead and every day.
Sundaram Finance Ltd, one of the leading financial companies in India was founded with the main goal of funding the acquisition of commercial vehicles and has now developed into one of India’s most reputable financial services groups.
It has over 640 branches across the country, more than two lakh depositors, and three lakh customers for commercial vehicle and auto financing.
Sundaram now has a diverse presence in a wide range of financial services and products, including mutual funds, housing finance, general insurance, etc.
They operate with a policy that is straight and deep-rooted in their working principles and is just a combination of Growth, Quality, and Profitability.
Manappuram Finance Ltd is a very old and trusted finance company in India, they have been operating for the past 70 years.
They have more than 4,500 offices across the country and a satisfactory customer count which reaches almost 5 million. This is possible by the excellent service they provide along with the vast options that they give which include gold loans, micro home loans, vehicle loans, healthcare industry loans, insurance subsidiaries, home loan subsidiaries, and SME financing.
The company has some featured services like a gold loan at your doorstep, Gold Loan, Forex, and Money Transfer.
Edelweiss Financial Services Ltd is an established finance company in India that deals with a diversified clientele that includes individuals, corporations, and other institutes.
They operate to provide the customer exactly what he requires in terms of financial services; and they specialize in asset management, wealth management, life insurance and general insurance, and, retail and corporate credit.
Edelweiss serves across the country helping both rural and urban households with over 300 offices and more than 2 million happy customers onboard. They have a strong group of sub-brokers and authorized persons who facilitate the whole process.
Tata Capital Financial Services Ltd is a subsidiary of Tata Capital Limited and one of the best financial companies in India. Their services are specifically designed to reduce risk and increase your wealth.
They keep a close eye on the economy and the market to give you financial advice that is tailored to your specific requirements. Their comprehensive strategy is wholly intended to increase your wealth for future generations.
Services that are provided by them include the following: working capital loans, term loans, equipment finance and leasing, construction equipment finance and home loan, personal loan, and business loans.
Power Finance Corporation Ltd. was designated a “Maharatna CPSE” in 2021, and in 2010, the RBI categorized the company as an infrastructure finance company. It is a financial institution with expertise in the power sector, a skilled and lean organization with strong asset quality and few NPAs.
PFC aims to be the most favored financial institution, offering competitively priced, high-quality products and services with effective international sourcing and servicing, supporting reforms in the Indian power sector, and maximizing value for all of its stakeholders by encouraging effective investments in the power and related industries both domestically and abroad.
One of the oldest and the best financial companies the Indian Railway Finance Corporation was established to raise money from both local and international capital markets, on December 12th, 1986.
Through the funding of a sizeable amount of its yearly plan outlay over its more than 30 years of operation, IRFC has contributed significantly to the expansion of the Indian Railways and allied organizations.
The main goal of IRFC is to use market borrowings to fund the majority of the Indian Railways’ “Extra Budgetary Resources” (EBR) needs at the most affordable rates and conditions. Therefore, the Company’s primary activity is to borrow money from the financial markets to finance the building of assets that are later leased to the Indian market.
In 1987, Motilal Oswal Financial Services Ltd. (MOFSL) was established as a little sub-broking operation, with just 2 persons in charge. They have grown into a 9,000+ member team thanks to their commitment to putting the needs of the customers first, ethical and open business practices, professionalism, research-based value investment, and the use of cutting-edge technology.
They are a well-diversified financial services company that is among the best finance companies in India, that offers a variety of financial goods and services, including private wealth, retail and institutional broking, asset management, investment banking, private equity, commodity trading, currency trading, and home financing.
The largest microfinance organization in India, CreditAccess Grameen Limited (CA Grameen), has its headquarters in Bengaluru, Karnataka. It is acknowledged by the Reserve Bank of India and openly listed on the NSE and BSE.
Customers commonly refer to the business as “Grameen Koota,” which is Kannada for the rural group. growing and expanding continuously and by 2025, they want to be the go-to financial partner for 1 million low-income households who don’t have access to credit.
Its motto is to be a responsible, trustworthy, and efficient provider of financial and developmental services based on need while utilizing technology and innovation to reach the most competitive pricing.
They are among the top-rated finance companies in India, and their product portfolio involves micro-financing – for groups and individuals, retail finance, and distributor products.
19. PNB Gilts Ltd.
PNB Gilts Ltd which is among the leading finance companies in India is the most important organization in the government Securities Market. More than 90% of the company’s business is in government securities.
Treasury Bills are among the services the organization offers along with Central Government Dated Securities, State-issued securities, PU Bonds, Mutual Fund Distribution, Equity Investment, Equity Trading, and Money Market Instruments. Additionally, they provide their clients with consultancy to manage their portfolio of government securities.
The business is a division of the Punjab National Bank. With an initial paid-up capital of Rs. 50 crores, PNB Gilts Ltd. was founded in 1996 as a fully owned subsidiary of Punjab National Bank.
A public limited company called Spandana Sphoorty Financial Limited is listed with the Reserve Bank of India (RBI) as an NBFC-MFI. In just five years from the start of its journey in 1998, Spandana had grown to become the largest Microfinance Institution (MFI) in India and the sixth-largest MFI worldwide by 2003.
After a modest start, the organization has grown its roots to 18 states in India today, with its headquarters in Hyderabad. More than 8,200 people work in the company’s head office and branches, which total over 1,010 branches.
They have a special loan known as the Abhilasha (JLG) loan, which is intended for low-income families who want to improve their financial situation. This loan’s main goal is to support women in starting and growing businesses that generate revenue and streamline household finances.
Final Thoughts on Financial Companies in India
This sums up all the top finance companies in India, so now based on your needs and requirements you can choose to go with whichever matches best for your banking, investing, and insurance needs. This list gives you a broad idea of what are the entire financial service spectrum and the specialization of each of the agencies.