How to start a small finance company in India?
Nowadays, finance companies are playing vital role in executing financial functions in the life of people. These companies play all the roles of a traditional bank without having any banking license. They provide loans to people to meet their day to day requirement that can be returned back with some amount of interest on it. In other words, they help in meeting the demands of the general public that remains unfulfilled by the traditional banking system of India in shorter processing time.
This is how both the lender and borrower are benefitted from the finance company in India. To start any finance company, it is mandatory to obtain the NBFC License in India. In this article, we will discuss how you can successfully obtain an NBFC license in India to startup your own finance company.
What is NBFC license in India?
NBFC is an abbreviation used for the Non-Banking Financial Companies of India. These companies play various roles like granting loans, assets mortgage, hedge funds, insurance, etc. to perform all these activities without any legal disputes they need to obtain an NBFC License in India.
NBFC License is issued to the finance companies registered under the Companies Act, 2013 and RBI Act, 1934. This license provides full right to the financial companies to provide both secured and unsecured loans to the borrowers based on their alternative lending models. Government is also providing various facilities to these finance companies to promote them more among the general public, so that the people willing to run a financial company can organize their lending services and operations.
What are the types of finance company that can obtain the NBFC License in India?
There are different types of finance companies distinguished on the basis of their authorization to take deposits and activities performed by them.
Different types of finance companies on the basis of their Authorization to Take Deposits:
Different types of finance companies on the basis of their Activities Performed:
What is the application for CoR (Certificate of Registration)?
To apply for NBFC License in India, you need to file the CoR application to the RBI. To file the application, you can take help of an experienced NBFC registration consultant. Swarit advisors have a team of most proficient and well experienced registration consultant that assures you to get the NBFC license in India without making any extra efforts. Here are some checkpoints you need to fulfill to file the CoR application:
Conclusion
Finance companies in India are gaining popularity due to their benefits for both the lenders and the borrowers. Opening a finance company is a non-complex, easy process that can be completed within few days with the help of an expert consultant. Swarit Advisors provides you money back guarantee with 100% success rate of your order. To obtain your NBFC License in India now, drop a mail to Swarit Advisors at [email protected] or make a call at their helpline number +91-9821399320.
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