What are the types of NBFC - tradecareer.

                   Types  of non banking financial company 

1. Asset Finance Company (AFC)

2. Investment Company (IC)

3. Loan Company (LC)

4. Infrastructure Finance Company (IFC)

5. Systemically Important Core Investment Company

6. Infrastructure Debt Fund - Non- Banking Financial Company (IDF-NBFC)

7. Non-Banking Financial Company - Micro Finance Institution (NBFC-MFI)

8. Non-Banking Financial Company – Factors (NBFC-Factors)

9. Mortgage Guarantee Companies (MGC)

10. NBFC

I. Asset Finance Company (AFC):

An AFC is a company which is a financial institution carrying on as its principal businessas the financing of physical assets supporting productive/economic activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and material handling equipment, moving on own power and general purpose industrial machines.

Principal business for this purpose is defined as aggregate of financing real/physical assets supporting economic activity and income arising therefrom is not less than 60% of its total assets and total income respectively.

II. Investment Company (IC):

Any company which is a financial institution carrying on as its principal business the acquisition of securities and shares of other body corporates.

III. Loan Company (LC):

LC means any company which is a financial institution carrying on as its principal business of providing of finance whether by making loans or advances or otherwise for any activity other than its own but does not include an Asset Finance Company.

IV. Infrastructure Finance Company (IFC):

IFC is a non-banking finance company 

a. Which deploys at least 75 % of its total assets in infrastructure loans, 

b. Has a minimum Net Owned Funds of Rs. 300 crore, 

c. Has a minimum credit rating of ‘A ‘or equivalent and

d. A capital adequacy ratio of 15%

(The Capital Adequacy Ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. 

The Capital Adequacy Ratio, also known as capital-to-risk weighted assets ratio (CRAR))

V. Systematically Important Core Investment Company (CIC-ND-SI):

A non-banking financial company not accepting / holding public deposits and having total assets of ₹ 500 crore and above as shown in the last audited balance sheet.

                                                                          

VI. Infrastructure Debt Fund - Non- Banking Financial Company (IDF-NBFC):

IDF-NBFC is a company registered as NBFC to facilitate the flow of long term debt into infrastructure projects.

 IDF-NBFC raise resources through issue of Rupee or Dollar denominated bonds with minimum 5 year maturity. 

Only Infrastructure Finance Companies (IFC) can sponsor IDF-NBFCs

VII. Non-Banking Financial Company - Micro Finance Institution (NBFC-MFI): 

NBFC-MFI is a non-deposit taking NBFC which fulfils the following Conditions

a) Minimum Net owned Fund of Rs. 5 Cr. But for the NBFC MFIs registered in North Eastern Region of the country the minimum Net owned Fund Requirement shall be Rs. 2 Cr. 

b) having not less than 85% of its Net Assets (Total Assets minus Cash & Bank Balance & money Market Instruments) in the nature of qualifying assets which satisfy the following criteria- 

i. Loan disbursed by an NBFC-MFI to a borrower with a rural household annual income not exceeding Rs. 1,25,000 or urban and semi-urban household income not exceeding Rs. 2,00,000; 

ii. Loan amount shall not exceed Rs. 75,000 in the first cycle and Rs. 1,25,000 in subsequent cycles; 

iii. Total indebtness of the borrower does not exceed Rs. 1,25,000. provided that loan, if any availed towards meeting education and medical expenses shall be excluded while arriving at the total indebtedness of a borrower.

iv. Tenure of the loan not to be less than 24 months for loan amount in excess of Rs. 30,000 with pre-payment without penalty; 

v. Loan to be extended without collateral security; 

vi. Aggregate amount of loans, given for income generation, is not less than 50% of the total loans given by the MFIs; 

vii. Loan is repayable on weekly, fortnightly or monthly instalments at the choice of the borrower.

VIII. Non-Banking Financial Company – Factors (NBFC-Factors): 

NBFC-Factor is a non-deposit taking NBFC engaged in the principal business of factoring. 

=> The financial assets in the factoring business should constitute at least 50 % of its total assets and 

=> Its income derived from factoring business should not be less than 50 % of its gross income.

IX. Mortgage Guarantee Companies (MGC) 

MGC are financial institutions for which

=> At least 90% of the business turnover is mortgage guarantee business OR

=> At least 90% of the gross income is from mortgage guarantee business AND

=> Net owned fund is Rs. 100 Cr.

X. NBFC- Non-Operative Financial Holding Company (NOFHC)

It is financial institution through which promoter / promoter groups will be permitted to set up a new bank .

It’s a wholly-owned Non Operative Financial Holding Company (NOFHC) which will hold the bank as well as all other financial services companies regulated by RBI.

 Or other financial sector regulators, to the extent permissible under the applicable regulatory prescriptions.