A Non-Banking Financial Corporation (NBFC) is a company that is registered under the Companies Act, 1956 whose operations are managed by the Ministry of Corporate Affairs and the Reserve Bank of India. They offer financial services like instant personal loans, asset financing, insurance services,investment services, microfinance, real estate financing, deposit services, credit cards and securitization.
This blog explores the top 12 non-banking financial companies in India and ways to find the best NBFC for your needs.
List of Top 12 NBFCs in India (2025)
Here are the top 12 Non-Banking Financial Companies (NBFCs) in India for 2025:
Aditya Birla Finance
Aditya Birla Finance Limited (ABFL), part of Aditya Birla Capital Limited, is a leading RBI-registered NBFC offering personal, SME, corporate, and wealth management solutions across India. With a strong presence in urban and semi-urban markets, ABFL is known for customized credit products and enjoys top-tier credit ratings, reflecting its financial stability.
Detail | Info |
Max Loan Amount | Up to ₹50 Lakhs (varies by profile) |
Min Loan Amount | ₹1 Lakh |
Interest Rate | 11% – 24% p.a. |
Tenure | 12 – 60 months |
Processing Fees | 2% – 3% + GST |
Founded | 2007 |
Headquarters | Mumbai, Maharashtra |
Key Offerings | Personal loans, SME finance, corporate loans, wealth management |
Credit Rating | AAA (Stable) – India Ratings; A1+ (short-term) – ICRA & India Ratings |
Reach | PAN-India presence |
Shriram Finance
Shriram Finance, part of the Shriram Group, is an RBI-registered NBFC with over 40 years in financial services. Focused on underserved and semi-urban markets, it offers a wide range of credit products to 7.5M+ customers through 2,500+ branches.
Detail | Info |
Max Loan Amount | Up to ₹25 Lakhs |
Min Loan Amount | ₹50,000 |
Interest Rate | 12% – 26% p.a. |
Tenure | 12 – 60 months |
Processing Fees | 2% – 3% + GST |
Founded | 1979 |
Headquarters | Chennai, Tamil Nadu |
Key Offerings | Personal loans, business loans, vehicle loans, deposits |
Credit Rating | AA+ (Stable) – ICRA & CRISIL |
Reach | 2,500+ branches, 7.5M+ customers |
Bajaj Finance
Bajaj Finance Limited (BFL), a subsidiary of Bajaj Finserv, is one of India’s largest NBFCs with 35+ years of experience. It serves 50M+ customers with a wide product range and is the only NBFC in India with a global ‘BBB’ rating by S&P.
Detail | Info |
Max Loan Amount | Up to ₹40 Lakhs |
Min Loan Amount | ₹1 Lakh |
Interest Rate | 12% – 32% p.a. |
Tenure | 12 – 84 months |
Processing Fees | 2% – 4% + GST |
Founded | 1987 |
Headquarters | Pune, Maharashtra |
Key Offerings | Personal loans, SME loans, consumer durable loans, business finance |
Credit Rating | FAAA/Stable – CRISIL; A1+ (short-term); Global BBB – S&P |
Reach | 3,900+ branches, 150,000+ distribution centers |
H3: LIC Housing Finance
LIC Housing Finance Ltd (LIC HFL), a subsidiary of LIC of India, has been among the top housing finance companies since 1989. It provides home loans, loans against property, and real estate finance through its wide branch and agent network.
Detail | Info |
Max Loan Amount | Up to ₹5 Crores (for home loans) |
Min Loan Amount | ₹1 Lakh |
Interest Rate | 8% – 12% p.a. |
Tenure | 12 – 360 months |
Processing Fees | 0.25% – 0.50% + GST |
Founded | 1989 |
Headquarters | Mumbai, Maharashtra |
Key Offerings | Home loans, loans against property, real estate financing |
Credit Rating | AAA (Stable) – CRISIL & ICRA |
Reach | PAN-India presence |
Cholamandalam Investment & Finance
Cholamandalam Investment & Finance Co. Ltd. (CIFCL), part of the Murugappa Group, is a leading Chennai-based NBFC established in 1978. It offers vehicle loans, home loans, SME finance, and investment services, serving both individual and commercial clients.
Detail | Info |
Max Loan Amount | Up to ₹25 Lakhs (personal & SME loans) |
Min Loan Amount | ₹50,000 |
Interest Rate | 12% – 20% p.a. |
Tenure | 12 – 84 months |
Processing Fees | 1% – 3% + GST |
Founded | 1978 |
Headquarters | Chennai, Tamil Nadu |
Key Offerings | Vehicle finance, SME loans, home loans, agri loans, investments |
Credit Rating | AA+ (Stable) – ICRA & CRISIL |
Reach | 1,200+ branches across India |
Mahindra & Mahindra Finance
Mahindra Finance, a subsidiary of Mahindra & Mahindra Ltd., has been serving rural and semi-urban India since 1991. Initially focused on vehicle financing, it now provides personal, SME, and agri loans with strong rural penetration.
Detail | Info |
Max Loan Amount | Up to ₹25 Lakhs |
Min Loan Amount | ₹50,000 |
Interest Rate | 12% – 22% p.a. |
Tenure | 12 – 60 months |
Processing Fees | 2% – 3% + GST |
Founded | 1991 |
Headquarters | Mumbai, Maharashtra |
Key Offerings | Vehicle loans, SME finance, personal loans, agri loans |
Credit Rating | AAA (Stable) – CRISIL & ICRA |
Reach | 1,380+ branches, strong rural coverage |
Indiabulls Housing Finance
Indiabulls Housing Finance Ltd. (IBHFL), part of Indiabulls Group, is one of India’s largest housing finance providers. Headquartered in Gurugram, it offers home loans, LAP, and mortgage financing through a digital-first and branch-based network.
Detail | Info |
Max Loan Amount | Up to ₹3 Crores (home/mortgage loans) |
Min Loan Amount | ₹1 Lakh |
Interest Rate | 8.5% – 16% p.a. |
Tenure | 12 – 360 months |
Processing Fees | 0.5% – 2% + GST |
Founded | 2000 |
Headquarters | Gurugram, Haryana |
Key Offerings | Home loans, LAP, corporate finance |
Credit Rating | AA+ (Stable) – CRISIL & ICRA |
Reach | 200+ locations PAN-India |
L&T Finance
L&T Finance Holdings (LTFH), part of Larsen & Toubro Group, was established in 2008. It provides loans for individuals, farmers, SMEs, and corporates, with a wide branch and digital network across India.
Detail | Info |
Max Loan Amount | Up to ₹25 Lakhs (personal/SME loans) |
Min Loan Amount | ₹50,000 |
Interest Rate | 12% – 20% p.a. |
Tenure | 12 – 84 months |
Processing Fees | 1% – 2% + GST |
Founded | 2008 |
Headquarters | Mumbai, Maharashtra |
Key Offerings | Personal loans, SME loans, agri finance, infra finance |
Credit Rating | AAA (Stable) – ICRA & CRISIL |
Reach | PAN-India presence across urban & rural areas |
Muthoot Finance
Muthoot Finance, part of the Muthoot Pappachan Group, is one of India’s largest gold loan NBFCs established in 1997. Headquartered in Kerala, it also provides housing loans, vehicle loans, and small business finance, serving a diverse rural and urban customer base.
Detail | Info |
Max Loan Amount | Up to ₹50 Lakhs (varies by product) |
Min Loan Amount | ₹25,000 |
Interest Rate | 10% – 24% p.a. |
Tenure | 12 – 60 months (longer for housing) |
Processing Fees | 1% – 2% + GST |
Founded | 1997 |
Headquarters | Kozhencherry, Kerala |
Key Offerings | Gold loans, home loans, vehicle loans, small business loans |
Credit Rating | AA+ (Stable) – ICRA & CRISIL |
Reach | 5,400+ branches across India |
Piramal Capital & Housing Finance
Piramal Capital & Housing Finance Ltd. (PCHFL), a subsidiary of Piramal Enterprises, was established in 2017. It offers home loans, LAP, construction finance, and corporate finance through 300+ branches across India.
Detail | Info |
Max Loan Amount | Up to ₹2 Crores |
Min Loan Amount | ₹1 Lakh |
Interest Rate | 9% – 18% p.a. |
Tenure | 12 – 240 months |
Processing Fees | 0.5% – 2% + GST |
Founded | 2017 |
Headquarters | Mumbai, Maharashtra |
Key Offerings | Home loans, loans against property, construction finance, corporate loans |
Credit Rating | AA (Stable) – CRISIL & ICRA |
Reach | 300+ branches PAN-India |
Tata Capital
Tata Capital Financial Services Ltd., part of Tata Group, is a trusted NBFC offering a wide range of loans since 2007. It provides personal, housing, SME, and infrastructure finance with a strong presence across India.
Detail | Info |
Max Loan Amount | Up to ₹35 Lakhs (personal loans) |
Min Loan Amount | ₹75,000 |
Interest Rate | 10% – 24% p.a. |
Tenure | 12 – 72 months |
Processing Fees | 1% – 3% + GST |
Founded | 2007 |
Headquarters | Mumbai, Maharashtra |
Key Offerings | Personal loans, SME loans, housing finance, business & infra loans |
Credit Rating | AAA (Stable) – CRISIL & ICRA |
Reach | 100+ branches across India |
HDB Financial Services
HDB Financial Services (HDBFS), a subsidiary of HDFC Bank, was founded in 2008 and is headquartered in Ahmedabad. It provides personal loans, business loans, consumer durable finance, and asset-backed lending through its wide PAN-India network of 1,600+ branches.
Detail | Info |
Max Loan Amount | Up to ₹20 Lakhs (personal loans) |
Min Loan Amount | ₹25,000 |
Interest Rate | 12% – 24% p.a. |
Tenure | 12 – 60 months |
Processing Fees | 2% – 3% + GST |
Founded | 2008 |
Headquarters | Ahmedabad, Gujarat |
Key Offerings | Personal loans, business loans, gold loans, consumer durable loans |
Credit Rating | AAA (Stable) – ICRA & CRISIL |
Reach | 1,600+ branches PAN-India |
How to Choose the Right NBFC for Your Financial Needs?
Check if the lender is approved by RBI: When taking any personal loan from an NBFC, check whether they are approved by the RBI. Being approved by the RBI ensures the institution adheres to lending norms and regulations.
Compare interest rates of different NBFCs: Do some market research and compare lenders for their interest rates. Choose the option that is well within your repayment capacity.
Check for hidden charges: Many lenders have hidden charges like processing fees or prepayment fees which the lender may not reveal upfront. Before you take any type of loan, it is important to check for all the other charges apart from the interest rates.
Understand the eligibility criteria: For any type of loan approval, it is important to fulfil the eligibility criteria like age, credit score, salary, employment status and so on.
Ensure to have correct documents: Ensure you submit all the required documents needed for the loan application.
Check for prepayment and foreclosure options: Many lenders allow you to prepay or foreclose the loan, without any charge. If you know you want to repay the loan early, go for a lender that offers this option.
Check customer reviews: Check online customer reviews on apps or other review platforms to understand customer experience with a particular NBFC.
Check digital availability of services: For ease of use for payments, check if the NFBC offers services online or if they have their own app.
Things to Check Before Taking a Personal Loan from an NBFC
Before finalizing a personal loan, it’s important to carefully review the lender and loan terms to avoid hidden costs and future hassles. Here are some key checks you should make:
- Verify RBI Approval: Ensure the NBFC is registered with RBI. This guarantees the lender follows regulations and offers you legal protection.
- Compare Interest Rates: Research different NBFCs and choose a rate that fits your repayment capacity without straining your monthly budget.
- Look for Hidden Charges: Apart from interest, check for processing fees, late payment charges, or foreclosure penalties. Always read the fine print.
- Check Eligibility Criteria: Review requirements like age, credit score, salary, and job stability to know your approval chances before applying.
- Keep Documents Ready: Submitting correct PAN, Aadhaar, salary slips, and bank statements speeds up the approval and disbursal process.
- Explore Prepayment Options: Choose an NBFC that allows part-prepayment or foreclosure at low or no cost if you plan to repay early.
- Read Customer Reviews: Go through online reviews or app ratings to understand the lender’s service quality and reliability.
- Confirm Digital Access: Check if the NBFC has an app or online portal for EMIs, statements, and support, making loan management easier.
Conclusion: The Future of NBFCs in India
While NBFCs and banks both contribute to financial inclusion, NBFCs focus on specialized services and cater to segments often underserved by banks. Banks, on the other hand, offer a comprehensive range of financial products and play a central role in the monetary system. Their complementary roles make them equally important in supporting India’s economic growth.
The future of Non-Banking Financial Companies (NBFCs) in India looks promising as they fill a key gap in the market. NBFCs offer enhanced financial inclusion for all, especially the underserved rural areas, by offering customized financial products. The technological upgrade, access to capital, and regulatory support has enhanced the lending processes.
Frequently Asked Questions
What are Non-Banking Financial Companies (NBFCs)?
A few of the NBFCs are Bajaj Finance, Aditya Birla Finance, Shriram Finance and LIC housing finance among others.
How do NBFCs Differ From Traditional Banks?
NBFCs differ from traditional banks in a number of ways like banks can accept deposits from customers while NBFCs cannot, banks are subject to strict regulations and so on.
What Are The Top Criteria To Consider When Choosing an NBFC in India?
When you choose an NBFC in India, loan amount, loan tenure, interest rates, processing fees, repayment flexibility are few of the top criteria one should check.
What Are The Regulatory Challenges Faced By NBFCs in India?
The regulatory challenges faced by NBFCs in India are issues related to compliance, funding, cost, liquidity, risk management and asset quality.
Which NBFCs Are Expected To Grow The Most In 2025?
As per a report, Axis Bank, HDFC Bank, ICICI, Bajaj Finance and Shriram Finance.
Who is the no. 1 NBFC in India?
As of now, Bajaj Finance Limited is considered the No. 1 NBFC in India, known for its wide product range, 50M+ customer base, and highest credit rating.
Which is the Safest NBFC in India?
The safest NBFCs in India are those with the highest credit ratings (AAA/Stable) from agencies like CRISIL and ICRA, such as Bajaj Finance, HDB Financial Services, and Aditya Birla Finance, as they follow RBI regulations and have strong financial stability.
Is NBFC Better Than Bank?
NBFCs offer quicker processing and more flexibility, making them a good option if your credit score isn’t strong, while banks usually provide lower interest rates with higher safety. In this blog, we’ll break down the key differences between the two.
What are the Disadvantages of NBFC?
NBFCs often charge higher interest rates, offer limited services, and lack deposit insurance, making them riskier than banks. They also can’t accept demand deposits or be part of the payment system, which restricts their operations.
