NBFCs or Non-Banking Financial Companies have taken the center-stage as financial service providers for small businesses in India. In this video, we have explained what NBFCs actually are, and how they are different from traditional banks and financial institutions! We have also listed some of its prominent types and examples for a clearer understanding. So, make sure you watch the video till the end! What is a Non-banking Financial Company? - Non-banking financial company is basically an incorporated company that provides Financial Services like loans, microfinance, leasing, hire purchase, credit card facilities, insurance policies, asset management, debt financing, investment through securities, and so on. These are Licensed and regulated by the Reserve Bank of India and are well known for their versatility. A few Examples of Non-Banking Financial Companies- Some of the popular examples of NBFCs in India include Muthoot Finance, Bajaj Finance, Mahindra and Mahindra Finance, Tata Capital Finance, Aditya Birla Finance, L&T Finance, and the list goes really long. How are banks and NBFCs different? - An NBFC does not operate with a banking license. Instead, it receives an NBFC license by the RBI, for conducting its operations in India. More importantly, unlike banks, NBFCs cannot accept demand deposits or issue checks to their customers. You can say that the primary difference between the two lies in their functionalities, and their roles are at best supplementary to each other! What are the different Types of NBFCs? - Asset Finance Company Investment Company Loan Company Infrastructure Financing Company Infrastructure Debt Fund Non-Banking Financial Company Micro Finance Company Non-Banking Financial Company – Factors

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