NBFC guide
Categories, capital, criteria and the registration path in one place. Informational only, so always verify against current RBI directions.
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Indicative information
Types
NBFCs are classified by how they raise funds and by what they do. Choose the category that matches your core activity; it decides the capital you need and the rules you follow.
NBFC-ICC (Investment and Credit Company)
General lending and investment company, the most common category.
Indicative only. Verify against current RBI directions.
NBFC-ICC (Investment and Credit Company)
₹10 cr
General lending and investment company, the most common category.
NBFC-MFI (Microfinance Institution)
₹10 cr
Small-ticket loans to low-income households, subject to special norms.
NBFC-HFC (Housing Finance Company)
₹20 cr
Housing loans and related finance.
NBFC-CIC (Core Investment Company)
₹100 cr
Holds investments in group companies, with at least 90% of net assets in group investments.
NBFC-Factor
₹10 cr
Factoring of receivables.
NBFC-IFC (Infrastructure Finance Company)
₹300 cr
At least 75% of assets in infrastructure loans, with a rating of at least A or CRAR of at least 15%.
IDF-NBFC (Infrastructure Debt Fund)
₹300 cr
Refinances infrastructure projects through long-term debt.
NBFC-MGC (Mortgage Guarantee Company)
₹100 cr
At least 90% of business in mortgage guarantee.
NBFC-P2P (Peer-to-Peer Lending Platform)
₹2 cr
Platform connecting lenders and borrowers.
NBFC-AA (Account Aggregator)
₹2 cr
Consent-based financial data sharing.
Net Owned Fund
Indicative minimum Net Owned Fund (in ₹ crore). For ICC, MFI and Factor the ₹10 crore requirement applies from 1 October 2022, with a glide path for existing NBFCs below that level. These are indicative values from public sources; always verify against the latest RBI directions before relying on them.
Principal business
A company is treated as an NBFC when its financial assets are more than 50% of its total assets (netted off by intangible assets) and its income from financial assets is more than 50% of its gross income. Both tests must be met.
Fit and proper
RBI assesses directors and significant shareholders against fit-and-proper criteria. Prepare for each of these:
The path
A typical path from idea to Certificate of Registration. Individual steps and timelines vary.
Register a company with NBFC-appropriate objects and the required minimum capital.
1–2 weeks
Bring in paid-up capital and obtain the banker's confirmation of the required fixed deposit.
1–3 weeks
Prepare a board-approved business plan with projections and credit policy.
2–4 weeks
Directors' and shareholders' KYC, credit reports, CA-certified net worth and capital structure.
1–2 weeks
Submit the application on the RBI portal and respond to queries.
1 week to file
RBI conducts due diligence and background checks before in-principle clearance.
Several months
Receive the CoR and complete post-registration compliance such as policies, KYC and returns.
On approval
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