Top 10 NBFCs for Business Loans in India in 2024

Top 10 NBFCs for Business Loans in India 2024
  • Apr 03, 2024

While availing of business loans, business owners often find it difficult to choose between registered banking institutions and Non-bank Financial Companies. Both of these choices offer varying sets of pros and cons, so, you must ensure to make a deliberate choice.

Even though NBFCs did not hold a good impression in their beginning stage, they have now become an integral part of the global economy. Business loan lenders in India often have high collateral demands, certain cash flow requirements, and a benchmark for credit score, all of which you must adhere to. On the other hand, NBFCs are renowned for their flexibility and relaxation of loan terms.

Indeed, NBFCs offer a wide range of advantages over traditional banks. Nonetheless, you must select a trusted partner for processing your business loan. To kick off your search for a suitable lender, we have prepared a list of top business loan lenders in India you can look into.

But before that, let’s understand the concept of NBFCs and why you must consider them.

Business Loans Made Easy with NBFCs

Non-Banking Financial Companies (NBFCs) similar to banks in practice, however, do not hold a license. They offer almost every service a bank does but due to the unavailability of a license, they do not need to comply with the regulations traditional banks follow. Some common examples of NBFCs include mortgage lenders, investment banks, private equity firms, and P2P lending institutions.

Due to the recent surge in their customer base, non-banking finance companies are also known as ‘shadow banks’. Credited to their license status, these non-banks are subjected to different levels of risks, liquidity, and capital restrictions. Consequently, you get better loan deals than banks.

Let’s look into why availing services from NFBC business loan providers is more beneficial than banks.

NFBCs Over Banks for Business Loans in India

There are far more business loan lenders in India than you can imagine once you consider both, registered banks and NBFCs. Nonetheless, banks have a few shortcomings that the latter cover within their services and methods. Read along to find the benefits of a business loan from a shadow bank over one from a licensed bank.

Lower Interest Rates

One of the major reasons why NBFCs have risen to such a stage in the industry is their competitive interest rates. Even when their interest rates are similar to traditional banks, NFBCs offer better overall packages. Additionally, as they have fewer branches compared to traditional banks and streamlined procedures, their operating costs are less, leading to lower interest rates.

Minimal Overhead Charges

Shadow banks generally target specific industries to provide their services, contributing to streamlined procedures. Utilizing the latest technologies also plays a vital role in minimizing overhead charges as it reduces the paperwork and processing load. So, navigating the operational load becomes considerably easier than traditional banks where they must navigate through multiple manual processes for a single service.

Digital Processing 

As mentioned above, utilizing technologies reduces manual labor and streamlines operations. NBFCs leverage available technologies to the fullest whereas for traditional banks, it might not be a cost-effective solution. The output of using digital platforms such as applications, websites, software, etc, is that the entire funding process is carried out quickly and accurately. 

Adaptable Repayment Terms

NBFCs give a whole different meaning to financial flexibility. Based on your credit history, income, employer’s profile, and other considerations, these banks provide you with pre-approved loans. You can withdraw amounts as you need and your interest will be calculated on the used amount. Pre-approved business loans come in handy in case of seasonal fluctuations and unexpected expenditures which are common for businesses.

Flexible Eligibility Criteria

Besides adaptable repayment options, the eligibility criteria for availing of a business loan are also comparatively flexible. Many businesses fail to get a business loan service due to the unavailability of appropriate collateral. This is where non-banking business loan providers come into play. A non-finance business loan company in India typically requires a small or in some cases, no collateral at all.

Top 10 NBFCs for Business Loans

Availing of a business loan from a shadow bank can prove to be a successful deal for your business, given that your partner is a reliable company. If you are looking forward to finding a trustworthy business loan company in India, you cannot miss out on this list.

Year of Establishment
2014Haryana, 122002
2.Unified Capital and Investments
2016Haryana, 122015
New Delhi, 110060
2016Maharashtra, 400013
1998Maharashtra, 400062
6.Oxyzo Financial Services
2016Haryana, 122001
7.Recapita Finance
2016Madhya Pradesh, 462016
2016Maharashtra, 400051
9.Paisa Bazaar
2014Delhi, 110008
10.Open Capital
2019Karnataka - 560035

Successful Business Loans with Trusted NBFCs

Finding a reliable business loan company in India is crucial for you to be able to nurture your business with minimal complexities. Traditional banks require you to adhere to multiple regulations such as credit scores, high-interest rates, rigid EMIs, and more. This is where NBFCs come into play. Due to being free from regulations that licensed banks need to follow, NBFCs are able to provide better loan deals with ease. With the above-mentioned list, you’ll be able to find a reliable NBFC business loan lender to avail of a loan.

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