NBFC Registration

Package Inclusion :

  • One Stop Service Provider for Securing NBFC License
  • Advisory for Fintech/Traditional NBFC Credit Business Model
  • Assistance in Developing Loan Products and Business Plan
  • Advisory on Business and Marketing Strategy based on Market Analysis
  • Assistance in meeting RBI Compliance
  • Support for Audit and Secretarial Compliance
  • Guidance on Digital Financial Services Marketing

 

NBFC Registration

NBFC Registration - What is NBFC?

NBFC (Non-Banking Financial Company) is engaged in financial activities as defined under section 45-IA of the RBI Act 1934 but does not possess a banking license. A company can offer services such as Loans and Credit Facilities, Assets Financing, Acquisition of Shares, Stock, Bonds, Hire-Purchase, Insurance, Currency Exchange, Peer to Peer Lending, hedge funds etc.

However, they do not have permission to perform banking operations of accepting demand deposits from the public. They also cannot issue cheques drawn on it.

NBFCs are registered as per the rules and regulations prescribed under Companies Act 2013 and the RBI Act 1934. They are playing a vital role in executing financial functions in the economy. They help to meet the demand that remains unfulfilled by the traditional banking system in shorter processing time.

An NBFC can provide both secured and unsecured loans to the takers based on alternative lending models. The government has been promoting NBFC so that the unorganised money lenders and people willing to run financial services can organise their lending operations.

Benefits of NBFC License- Business Environment for NBFC in India.

The business environment in India is favorable for exponential growth. Financing business in India is highly regulated by the Reserve bank of India.  A Registered NBFC allows to gain the confidence of borrowers, offers you the security of capital invested in the business.

 

Low-Cost NBFC Registration Process

Low-Cost NBFC Registration Process

01

Legal and Business risk

Legal and Business risk

02

Attracts more borrowers

Attracts more borrowers

03

Easy to Raise Investments in NBFC

Easy to Raise Investments in NBFC

04

Access of CIBIL

Access of CIBIL

05

Open Interest Rate without any Cap

Open Interest Rate without any Cap

06

Free to charge Processing Fees–No Cap

Free to charge Processing Fees–No Cap

07

Protection by Law for recovery of loan

Protection by Law for recovery of loan

08

Easy Bank Finance

Easy Bank Finance

09

Up to 100%, FDI Allowed

Up to 100%, FDI Allowed

10

Quick Loan Processing

Quick Loan Processing

11

Soft Eligibility Criteria

Soft Eligibility Criteria

12

Fewer Rules and Regulations

Fewer Rules and Regulations

13

What are 

 

What are the Roles and Functions of an NBFC?

NBFCs play a significant role in conducting financial services in the Indian economy. NBFC in India have undergone too many transformations in recent years. At present, most of the NBFC Start-ups have adopted high-end tech based business model.

These NBFCs are working actively to promote financial inclusion & as well aggressively complementing the banking sector.

Checklist for NBFC Registration in India

According to Section 45(1A) of the Reserve bank of India for any company to register as NBFC, the below conditions must fulfil.

What are the Types of NBFC in India?

There are two  categories of NBFC. These are distinguished on activities in operation as well as on the authorization to take deposits.

NBFC Based on the Authorization to Take Deposits

NBFC Based on their Activities

NBFC Based on their Activities

Investment and Credit Company

Investment and Credit Company

Infrastructure Debt Fund (IDF-NBFC)

Infrastructure Debt Fund (IDF-NBFC)

Factors (NBFC-Factors)

Factors (NBFC-Factors)

Peer to Peer Lending Marketplace

Peer to Peer Lending Marketplace

Infrastructure Finance Company

Infrastructure Finance Company

Core Investment Company

Core Investment Company

Micro Finance Institution (NBFC-MFI)

Micro Finance Institution (NBFC-MFI)

Mortgage Guarantee Company

Mortgage Guarantee Company

Housing Finance Company

Housing Finance Company

Chit Fund Company

Chit Fund Company

Mutual Benefit Finance Company

NBFC Registration Departments

The founders are required to follow both online as well offline NBFC application process to obtain the NBFC license. The Reserve bank of India is an autonomous body, and it has two departments to regulate and supervise the function of an NBFC.

DNBR (Department of Non-banking Regulation)

The DNBR is responsible for conducting the Fresh NBFC Registration process as well for preparing the regulation for the NBFC. The DNBR has transparent as well innovative assessment process of NBFC Application.

The DNBR will email you or send you a formal notice if they need of any additional documents during the NBFC registration process. The RBI expects your submission/response to a notice within 30 days as per the NBFC regulations.

 

DNBS (Department of Non-Banking Supervision)

DNBS is responsible for post-registration compliance and other administrative issues about NBFCs.

Applicants can expect an NBFC license in 90 to 120 days after successful acceptance of an NBFC application.

How to Apply for NBFC Registration? - NBFC Registration Process Checklist

Before the filing of Application for COR (Certificate of registration), one should read the following checklist of NBFC registration Process.

 

Hire NBFC Registration Consultants

Hire NBFC Registration Consultants

Step 1

Business Plan

Business Plan

Step 2

Application for CoR

Application for CoR
(Certificate of Registration)

Step 3

 

Step 1 – Hire NBFC Registration Consultants

Step 2 – Business Plan

Step 3 – Application for CoR (Certificate of Registration)

What are the Support Services from Enterslice after Certificate of Registration from the RBI?

What are the NBFC Registration Fees?

For NBFC registration, there is a requirement of minimum capital of Rs. 2 cr therefore an applicant needs to register a company with the prescribed capital along with the requisite government fees.

What are the NBFC Compliances after COR?

There are certain complainces to meet after the completion of the NBFC Registration Process. Additionally, they need to follow the RBI Act, RBI Guidelines, Circulars, and notifications published in the public domain from time to time.

Fresh NBFC Registration vs. Takeover of Pre-Existing NBFC

Applying for new NBFC Application is always a better option than a takeover of existing ones. The registration of NBFC is simpler than before. This is especially for Foreign Companies, who intends to enter into the Indian Financial service market.

We always advise them to apply for the new NBFC registration Application instead of  buying existing. NBFC.

 

What are the NBFC Pre Registration Requirements?

Before the NBFC filing there are certain pre-registration requirements for a registration of NBFC:
  • Register a Company as per Companies Act 2013
  • Arrange Capital of Rs. 2 Crore (Minimum capital requirement for an NBFC)
  • Create a Fixed Deposit of Rs 2 CR
  • FDI Compliance as per FEMA Act - In the case of foreign investment
  • Complete documentation for an NBFC license
  • Submission of necessary documents with FD receipt before RBI
Documents Required for an NBFC License in India
  • MOA of the NBFC Company

    The object clause in the MOA is depicting the financial/Investment/Lending business.

  • Certified Copy of Registration Certificate

    Obtain a Certified copy of Certificate of Incorporation (COI), MOA & AOA from the Regional registrar of companies

  • Latest KYC

    Need updated KYC & Income proof of Directors and Shareholders

  • Net worth Certificate

    Collect updated net worth certificate of Directors, Shareholders, and Company

  • Clean Banker Report

    Need to Obtain a Banker report about the no Lien remark on the Initial Fixed deposit of Rs 2 Cr.

  • Education Proof

    Proof of educational/professional qualification of the directors of the Applicant company

  • Credit report of Directors and shareholders

    Latest credit reports of directors and shareholders are required.

  • Experience in the Financial sector

    Submit at least one Director's profile with 10+ years’ experience in the financial services sector

  • Underwriting model

    Submit a detail action plan about the loan products, fair practice code, credit and risk assessment policy.

  • Organisation Matrix

    Need to provide organizations structure and decision-making process for approval/rejection of a loan application

  • System and IT Policy

    Submit Information technology policy

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