Types of NBFCs in India and Their License Requirements
- Sanjana Singhania
- Nov 29
- 2 min read
Non-Banking Financial Companies (NBFCs) play a major role in India’s financial ecosystem. They offer credit, investment, and financial solutions to individuals and businesses, especially in regions where traditional banks cannot reach. If you are planning to enter India’s financial sector, understanding the types of NBFCs and their NBFC License requirements is essential.
What Is an NBFC?
An NBFC is a company registered under the Companies Act, 2013 and regulated by the Reserve Bank of India (RBI). NBFCs offer financial services such as loans, microfinance, investments, leasing, and more, without meeting the full criteria required to operate as a bank.
Types of NBFCs in India
Below are the major categories of NBFCs as per RBI classification:
1. NBFC–Investment and Credit Company (NBFC-ICC)
NBFC-ICC is the most common category. It includes companies involved in:
Personal loans
Business loans
Asset finance
Investment in securities
License Requirement
To obtain an NBFC License, the company must have:
₹2 crore minimum Net Owned Fund (NOF)
Fit and proper directors
Clean credit history
Detailed business plan
RBI application through COSMOS portal
2. NBFC–Micro Finance Institution (NBFC-MFI)
These NBFCs provide small-ticket loans to low-income households, generally without collateral.
License Requirement
Minimum of 85% of assets as qualifying microfinance loans
₹2 crore NOF
Strict disclosure and interest rate norms
3. NBFC–Housing Finance Company (NBFC-HFC)
HFCs provide housing loans to individuals and developers.
License Requirement
Must comply with NHB (National Housing Bank) regulations
Minimum NOF requirement as per NHB norms
Mandatory reporting and compliance framework
4. NBFC–Infrastructure Finance Company (NBFC-IFC)
These NBFCs finance large-scale infrastructure projects such as roads, ports, airports, and energy.
License Requirement
75% of total assets must be infrastructure loans
Higher NOF requirement (₹300 crore+)
Minimum credit rating: A or above
5. NBFC–Infrastructure Debt Fund (NBFC-IDF)
It facilitates long-term debt financing for infrastructure projects.
License Requirement
Sponsored by an Infrastructure Finance Company (IFC)
Long-term bond issuance approval
Strict capital adequacy norms
6. NBFC–Peer-to-Peer Lending Platform (NBFC-P2P)
These platforms connect borrowers and lenders online.
License Requirement
Application under P2P guidelines
Tech-based platform compliance
Capital requirement: ₹2 crore
Strict data protection & grievance redressal norms
7. NBFC–Account Aggregator (NBFC-AA)
NBFC-AAs allow customers to share their financial data securely with financial institutions.
License Requirement
Data security audit compliance
RBI approval for digital operations
No financial product distribution allowed
8. NBFC–Factor
These NBFCs offer invoice factoring services to MSMEs.
License Requirement
Minimum 50% of financial assets in factoring
NOF: ₹5 crore
Mandatory registration with RBI
Why Choose Registrationwala for NBFC License Assistance?
Obtaining an NBFC License requires expertise, compliance knowledge, and accurate documentation. Registrationwala, India’s trusted financial and legal consultancy, helps you with:
End-to-end NBFC registration support
RBI application drafting and filing
Business plan preparation
Compliance and advisory services
100% transparency and expert guidance
Whether you're starting an NBFC or restructuring an existing one, Registrationwala ensures a smooth and hassle-free registration journey.
Conclusion
NBFCs are vital contributors to India’s financial growth. Understanding the different types of NBFCs and their license requirements helps entrepreneurs choose the right financial model. If you are planning to start your NBFC, obtaining an NBFC License through expert guidance is essential.
For a seamless, accurate, and professional NBFC registration experience, choose Registrationwala—your trusted partner in financial compliance.
Also Read: Top 10 NBFCs in India 2025
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