NBFCs meeting The Credit Demand effectively of the Niche & Unbanked Populace

The role of Non-Banking Financial Companies (NBFCs) is crucial to the country’s economy as they essentially cater to the unbanked and under banked population of the country. NBFCs provide financial credit services to individuals, small and medium-sized enterprises, and other businesses not served by traditional banks. Playing an integral role in the diversification of the Indian financial sector by mobilizing resources they provide various kinds of credit such as consumer loans, mortgage loans, auto loans, gold loans, and more to the customer.

While banks, the government-authorized entities led by a stringent lending process find it difficult to cater to an extensive customer spread, NBFCs hold a significant advantage over banks and offer loans at competitive interest rates to cater to a larger section of the market. Moreover, as one of the major problems of the financial services sector concerns data privacy and cyber security, with continuous tech innovation and focus on business expansion the NBFCs have adopted some of the key technology trends such as artificial intelligence (AI), machine learning (ML), blockchain, and big data analytics. While AI and ML are being used to automate credit scoring and fraud detection, blockchain is being used for secure and transparent online transactions.

Most customers seek NBFCs on account of their quick decision-making, minimal requirements for documents, and prompt services, and it is heartening to see that the RBI and policymakers recognize the contribution of NBFCs in supporting real economic activity and meeting the credit demand. The opportunity for credit penetration still remains very high in India. Many, government schemes like ‘Make in India’ are giving a boost to the country’s manufacturing sector fostering credit demand from heavy industries. The credit-hungry micro, small and medium enterprises (MSME) sector also increasingly seeking NBFC funding. In 2023, NBFCs will play a larger role in supporting the socioeconomic construct of the Indian economy. Well, today where there exists a deluge of NBFCs, our siliconindia’s edition – 10 Most Promising NBFCs in India – 2023, provides you with a well-evaluated and renowned list of players in the space to let you choose the best.
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