NBFCs maintain forged partnerships that too include the government's ability to use their database, which further helps them in identifying the worthiness of any customer.
Categories of NBFC Licenses in India There are eight types of NBFC licenses in India: Non-Banking Financial Company – Micro Finance Institution (NBFC-MFI): NBFC-MFI is a non-deposit-taking company engaged in microfinance lending activities to small and marginalized sectors.
The private wealth market of India is expected to become the fourth largest private wealth market by 2028 and NBFCs can play an important role in achieving this growth through their diversified product options and more efficient management control.
This is generally a requirement to be filled while dealing with government and commercial offices as they need it to be certain about the financial standing of the individuals/entities.