NBFCs have become the staple of the financial ecosystem in India that fills the gap that the traditional banks have failed to fill in. These innovative organizations reach underbanked populations, small business owners and specialized industries with customized financial services to millions of people. With India moving towards a digital economy, NBFC companies have played a critical role in financial inclusion in both the rural and the urban markets. The 308 listed NBFCs with their total market capitalization of more than 19.96 lakh crores as of 2025 have become a major player in the Indian financial arena with operations ranging between micro-loan originations to corporate level financing.
What is an NBFC Company?
Non-Banking financial companies are financial institution providers of banking services without a banking license issued by the Reserve Bank of India. Unlike conventional banks, these businesses are not able to receive demand deposits and issue cheques drawn on them to customers. On the contrary, NBFC companies are specialized in lending, investing and asset financing practices governed by the regulatory body RBI. They have greater degree of operational flexibility and serve niche markets and specialized customer bases than the commercial banks. Such institutions are instrumental in Indian financial ecosystems through their innovative products, the ability to reach previously underserved populations, and the creation of financial inclusion in a variety of economic sectors and geographic areas.
Difference between NBFCs and Banks
NBFCs:
- It cannot take demand deposits of the people
- Be not a constituent of the payment and settlement system
- Cant draw cheques on themselves
- More adaptable in operations and products
- Higher rates of interest as compared with banks
- Target market specialization on certain customer groups
Banks:
- Can accept the deposits of any sort including demand deposits
- The payment and settlement system is an inseparable part
- Can give cheques and payment services
- Heavily controlled and with high compliance levels
- Reduced interest rates as a result of being regulated
- Full- Fledged financial services such as fundamental banking services
Types of NBFCs in India
- Housing Finance Companies (HFCs): Deal in loans to purchase, construct and renovate residential and commercial property
- Microfinance Institutions (MFIs): Specialization on offering small loans to the low-income people without collateralizing the loans
- Asset Finance Companies (AFCs): The specialization of these companies is in financing physical assets such as vehicles, machinery, and equipment
- Core Investment Companies (CICs): Investments in subsidiaries and group companies are their main occupation
- Investment Credit Companies (ICCs): Investment loans and advances and financial services
- Infrastructure Finance Companies (IFCs): These companies are specialized in investing in infrastructure projects and long-term development projects
Top NBFC Companies in India
1. HDFC Limited
Founding Year & Headquarters: It was founded in 1977 and its location is in Mumbai, Maharashtra
Target Audience / Ideal Customer: Individual home buyers, property investors, real estate developers and corporate customers who need housing finance services
HDFC Limited is the leading housing finance company in India and changed the home loan sector when it was founded. Having a keen interest in retail housing finance, the company has managed to remain a market leader by providing cutting edge products, competitive interest rates and providing excellent customer service.
The wide network of branches and digital platform provided by the company enables access to the urban and rural markets to make the home ownership dreams come true in the form of comprehensive financing offers to millions of Indians.
Key Products & Services:
- Purchase, construction and improvement home loans
- Mortgage on home finance requirement of all kinds
- Commercial real estate funding solutions
- NRI home loans, investment products
- Project funding to builders and developers
Unique Features / Strengths:First in housing finance with the largest market share and most trusted brand in Indian housing finance sector
Market Cap: 5,6 trillion (2025)
Website Link: www.hdfc.com
2. Bajaj Finance
Founding Year & Headquarters: 1987, Pune, Maharashtra
Target Audience / Ideal Customer: Retail customers, small businesses and corporate customers who require consumer finance, business loans and investment products
Bajaj Finance has become the most valuable NBFC Companies in India with its innovative way of consumer lending and its digital first approach. The company has been able to diversify its product line and services beyond traditional consumer durables financing and include personal loans, business loans, and digital lending solutions.
Bajaj finance has a healthy technology infrastructure and data analytics portfolio that enables it to set new benchmarks in the customer acquisition, risk management and operational efficiency in the NBFC industry in India.
Key Products & Services:
- EMI Financing and consumer durable loans
- Lifestyle funding and personal loans
- SME and entrepreneur business loans
- Debit cards, Digital payments, Credit cards
- Fixed deposits, investment products
Unique Features / Strengths: The market leader in consumer finance with powerful digital assets and largest market value among NBFCs
Market Cap: 5,55,868 crores (2025)
Website Link: www.bajajfinserv.in
3. LIC Housing Finance
Founding Year & Headquarters: It was founded in 1989 and is headquartered in Mumbai, Maharashtra
Target Audience / Ideal Customer: Individual home buyer, property developer, corporate borrowers and investors in need of housing finance solutions
LIC Housing Finance is a leading housing finance company promoted by the Life Insurance Corporation of India. The company is utilizing the vast network and financial capability of its parent body to provide integrated housing finance services in India.
As affordable housing and government programs such as Pradhan Mantri Awas Yojana, LIC Housing Finance plays an instrumental role in meeting the housing development targets in the country and also reaches out to different sets of customers. It is also among India’s leading NBFC companies.
Key Products & Services:
- Individual housing loans purchase and construction
- Real estate developer loans
- Property discounting of lease rentals to property investors
- Non resident Indian home loans
- Mortgage money programs
Unique Features / Strengths: Good parentage and LIC support and wide network in the housing of the affordable segment
Market Cap: 390 b (2025)
Website Link: www.lichousing.com
4. Shriram Transport Finance
Founding Year & Headquarters:Chennai, Tamil Nadu (now part of Shriram Finance)
Target Audience / Ideal Customer: Fleet owners, commercial truck drivers, small transportation companies, and individual truck drivers
Shriram Transport Finance, which is now a part of Shriram Finance, has been the first lender to commercial vehicles in India. The company has developed its reputation in servicing the underserved section of truck drivers and small fleet operators with flexible financing.
Having a loyal customer base, the organization has a good grasp of the transportation industry and its appreciation of the rural penetration makes it a financier of choice in the purchase of commercial vehicles and equipment in the various geographic locations in India. It is also among India’s leading NBFC companies.
Key Products & Services:
- Truck and Bus loans
- Equipment loans onFailure to maintain quality standards
- Loans on tractor and farm equipment
- Auto loans and The auto loans
- Loans on two wheelers and three wheelers
Unique Features / Strengths: Leader in market of financing of commercial vehicles, having good network in the rural areas, specialized in the sector
Market Cap: 50 percent of Shriram Finance with an AUM of 1.71 lakh crore
Website Link: www.shriramfinance.in
5. L&T Finance Holdings
Founding Year & Headquarters: The company was established in 1994, but its headquarters is in Mumbai, Maharashtra
Target Audience / Ideal Customer: Retail customers, SMEs, infrastructure developers, and corporate customers in need of diversified financial services
L&T Finance Holdings is the financial services arm of the illustrious Larsen and Toubro Group that provides a complete set of lending and investment solutions. The company has also aligned its business in high-growth areas such as rural finance, housing finance and infrastructure funding.
Having good parentage and effective risk management infrastructures, L&T Finance is continuing to grow steadily as it concentrates on digital transformation and customer-centric innovations in various business verticals. It is also among India’s leading NBFC companies.
Key Products & Services:
- Mortgaging and home financing
- Rural and agricultural financial solutions
- Project and infrastructure financing
- Micro finance, small business loans
- Car loans, and two-wheeler and commercial vehicle loans
Unique Features / Strengths: Good brand equity L&T Group backing and diversified portfolio across financial segments
Market Cap: About 25000 crores
Website Link: www.ltfs.com
6. Tata Capital Financial Services
Founding Year & Headquarters: It was founded in 2007 and is headquartered in Mumbai, Maharashtra
Target Audience / Ideal Customer: Individual consumers, SMEs, corporate clients and dealers who are in need of comprehensive financial solutions
Tata Capital Financial Services is a reliable non-banking financial company (NBFC Companies) with a parent group of Tata that provides diversified financial services and products. The company uses the credibility of the Tata brand and the large ecosystem to offer innovative financing solutions in the retail, commercial and investment segments.
By putting its emphasis on digital innovation and customer experience, Tata capital has continued to increase its market share whilst still upholding the values of integrity and excellence of the group.
Key Products & Services:
- Consumer credit and personal loans
- Working capital and business loans
- Equipment and vehicle financing
- Mortgage services and loans
- Wealth management services and investment
Unique Features / Strengths: Tata Group credentials which guarantee trust and reliability with broad spectrum of financial services products
Market Cap: About 35,000 crores
Website Link: www.tatacapital.com
7. Muthoot Finance
Founding Year & Headquarters: It was established in 1887 and its headquarter is in Kochi, Kerala
Target Audience / Ideal Customer: People in need of quick loans against gold, small scale business owners and those in need of emergency funds
Muthoot Finance is the largest gold loan NBFC Companies in India and its history dates back to more than 135 years. The company has transformed the business of gold loan in India to be customer-friendly, transparent and accessible to all.
Having a comprehensive network of branches in every corner of the nation, Muthoot Finance has become the brand that is associated with gold loans and offers fast processing, affordable interest rates, and convenient repayment terms to its millions of customers, especially semi-urban and rural locations.
Key Products & Services:
- Gold loans with flexible leasing terms
- Personal financing and business financing
- Foreign currency services
- Insurance and investment activities
- Railroad, money transfer and remittance services
Unique Features / Strengths: Largest gold loan company in India and has a wide branch network as well as a trusted brand name in the gold loan segment.
Market Cap: 42,000 crores (in rupees)
Website Link: www.muthootfinance.com
8. Mahindra Finance
Founding Year & Headquarters: It was founded in 1991 and its headquarters is based at Mumbai, Maharashtra
Target Audience / Ideal Customer: Farmers, small entrepreneurs, rural and semi-urban customers and commercial vehicle owners
Mahindra Finance is the financial services subsidiary of the Mahindra group and has carved a niche in rural and semi urban financing with tractor and commercial vehicle loans being its core business.
As a part of the Mahindra Group, the company has good relations with agricultural and transport industries because the company understands the peculiarities of the rural world. With innovative products and services that focus on the rural economy, Mahindra Finance has been able to dominate the financial inclusion front and the development of the agricultural and rural sectors of India. It is also among India’s leading NBFC companies.
Key Products & Services:
- Farm equipment finance
- Loans on leave on commercial vehicles
- Auto financing and Personal mobility products
- SME and business Financing
- Financial advice (investment and insurance consultation)
Unique Features / Strengths: Strong rural presence and in-depth understanding of agricultural sector and Mahindra group eco-system is a benefit
Market Cap:35110 crores (approximately)
Website Link: www.mahindrafinance.com
9. Aditya Birla Capital
Founding Year & Headquarters: It was founded in 2007, with its headquarters in Mumbai, Maharashtra
Target Audience / Ideal Customer: Individual investors, corporate, retail borrowers and customers seeking full coverage of financial services
ABC is the financial services division of the Aditya Birla Group that provides a wide array of lending, insurance, and wealth management services. The company has developed a full scale financial services portfolio that includes lending, asset management, life insurance, and general insurance.
Having a strong brand name and the support of the group, Aditya Birla Capital is determined to offer integrated financial solutions to help satisfy different customer needs at various stages of life, and business needs. It is also among India’s leading NBFC companies.
Key Products & Services:
- Consumer finance/ personal loans
- Mortgages and home loans
- Corporate lending and corporate finance
- General and Life insurance products
- Wealth management and mutual funds
Unique Features / Strengths: All inclusive financial services platform with robust brand legacy of Aditya Birla Group
Market Cap: 45,000 crores (approximately)
Website Link: www.adityabirlacapital.com
10. Indiabulls Housing Finance
Founding Year & Headquarters: Founded in 2005, headquartered in Gurgaon, Haryana
Target Audience / Ideal Customer: Home buyers, property investors, real estate developers and high-net-worth individuals
Indiabulls Housing Finance is an emerging leader in the housing finance industry with a reputation of being a customer-focused company with innovative products. The company is dedicated to the provision of holistic housing finance services with emphasis on speedy processing, competitive interest rates and flexibility in repayment.
The company has been experiencing regulatory issues over the past years but still serves its current customers and attempts to improve its operational and governance structures. It is also one of the well-known NBFC companies in India.
Key Products & Services:
- Purchase and construction home loans
- Solutions in possession of property
- Commercial real estate loan
- Land purchase loans and plot finance loans
- Home improvement and extension loans
Unique Features / Strengths: Targeting high-end market with attractive interest rate and easy loan terms and conditions
Market Cap: 8500 crores (approximately)
Website Link: www.indiabullshomeloans.com
[To get all the details of the top 100 NBFC companies in India, visit industry reports and financial market databases]
NBFC Loan Company List
- Personal Loans: These are unsecured loans, advanced by organizations such as Bajaj Finance and Tata Capital, to finance personal expenditures, debt consolidation and emergency requirements
- Vehicle Loans: Shriram Finance and Mahindra Finance provide two-wheeler, car and commercial vehicle loans to cover the needs of transport.
- Home Loans: Home financing solutions with HDFC and LIC Housing Finance as the leader in this biggest NBFC lending area
- Business Loans: Lending to SMEs and entrepreneurs by companies such as L&T Finance and Aditya Birla Capital, which are working capital and expansion loans
- Gold Loans: The instant finance option with gold as collateral, where Muthoot Finance leads this niche segment due to large branch network
- Equipment Loans: Equipment financing of machinery, construction and agricultural equipment is provided by several NBFC companies
Benefits of NBFCs
- Flexible Lending Criteria: NBFCs also offer flexibility in eligibility criteria which acts as a booster to the availability of credit to a wider customer base
- Rapid Processing: Loans are processed quickly with minimum documentation and speedy approval processes that can be within a few hours or days
- Individual Treatment: Individualized customer treatment is possible at the small scale of operation and customized financial assistance is possible here
- Niche Products: Investing in niche markets gives an opportunity to develop more specialized products to suit particular industries or customer groups
- Digital Innovation: Most NBFC companies are at the forefront of using new technologies creating smooth digital lending journey and mobile applications
- Competitive Interest Rates: NBFCs are usually at a better rate than banks, but also sometimes offer competitive rates on special products and segments
How to Choose the Best NBFC in India
- Compare Interest Rates: Check the interest rates in the various NBFC companies along with the charges that are imposed by them for processing, prepayment, and total cost of the loan.
- Regulatory Compliance: Check to make sure that the NBFC is regulated by RBI and maintains regulatory compliance to secure and safe transactions
- Evaluate Customer Service: Investigate Customer comments, complaint handling procedures and general service quality based on the internet sites and ratings
- Compare Product Features: Compare loan terms, repayment flexibility, tenure options and other features that match your specific needs
- Read Financial Solvency: Verify the credit ratings, financial results, and overall reputation of the NBFC to make sure it is dependable in the long-term
- Understand Documentation: Examine the documentation procedure, the approval time and transparency of loan terms and terms and conditions before making final decisions
Conclusion
The NBFC sector in India has been serving the country by the leading role it has in the financial eco-system of more than 308 listed companies playing a major role in the economic growth and financial inclusion of the country. As we move forward in 2025, these NBFC companies have proven to be quite resilient and innovative, adjusting to a dynamic market environment and serving a diverse customer base. The industry includes established players such as HDFC and Muthoot Finance as well as digitally-native institutions such as Bajaj Finance and provides a full range of financial services to the changing needs of Indians.
Having a combined market capitalization of over 19.96 lakh crores and the current technological progress, NBFCs are perfectly placed to help India in its endeavor to become a 5 trillion dollar economy, by making credit available and creating a more inclusive growth in both urban and rural markets across the country.
Frequently Asked Questions (FAQs)
How is NBFC different from banks?
Banks can accept demand deposits and are a part of payment systems, whereas NBFC Companies can not accept demand deposits but have more flexible lending terms and process less slowly.
Are NBFC deposits insured?
Banks have deposit insurance, whereas RBI controls the deposits made in NBFCs. Select NBFCs that are listed on RBI to get security.
What is the biggest NBFC in India?
As of 2025, Bajaj Finance has the largest market capitalization of any NBFC in India, which is around 5.55 lakh crores.
Can the NBFCs provide personal loans?
To answer that, yes, many NBFCs offer personal loans with a broad eligibility criteria, fast processing and attractive interest rates as compared to banks.
What is the way of checking the authenticity of an NBFC?
Before investing or borrowing, visit RBI official site and check the NBFC certificate of registration, credit ratings and customer reviews.
