Why do you want to join NBFC?

Profitability: NBFCs are more profitable than the banking sector because of lower costs. This helps them offer cheaper loans to customers. As a result, NBFCs’ credit growth – the increase in the amount of money being lent to customers – is higher than that of the banking sector.

How many types of NBFC are there?

Non Banking Financial Companies (NBFC) are mainly classified into 4 types in which first will be general NBFC, secondly, Mutual Benefit Financial Company, then third, Mutual Benefit Company and finally the forth is Miscellaneous Non Banking Company.

What is NBFC and how it works?

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance …

What is the role of NBFCs?

NBFCs do play a critical role in participating in the development of an economy by providing a fillip to transportation, employment generation, wealth creation, bank credit in rural segments and to support financially weaker sections of the society.

Who controls NBFC?

The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter III-B) and the directions issued by it.

What is Type 2 NBFC?

Type 2 – NBFC-ND are the NBFC’s intending to have a customer interface in the future or currently having a customer interface, intending to accept public funds in the future or accepting public funds currently.

What are the main objectives of NBFC?

To facilitate and encourage the creation, issue or conversion of debentures, debenture stock, bonds, obligation, shares, stocks, and securities, and to act as trustees in connection with any such securities, and to take part in the conversion of business concerns and undertakings into companies.

What is the main function of NBFC?

Non Banking Financial Company also known as NBFC company, functioning as per the Indian Companies Act, giving loans and advances to the public. An NBFC company can acquire shares, stocks, bonds, debentures and securities from Government as well as local authority or any other marketable securities.