Top 12 Non-Banking Financial Companies in India 2025

A Non-Banking Financial Corporation (NBFC) is a company that is registered under the Companies Act, 1956 whose operations are managed by the Ministry of Corporate Affairs  and the Reserve Bank of India. They offer financial services like instant personal loans, asset financing, insurance services,investment services, microfinance, real estate financing, deposit services, credit cards and securitization. 

This blog explores the top 12 non-banking financial companies in India and ways to find the best NBFC for your needs. 

Top 12 Non-Banking Financial Companies in India (2025)  

Here are the top 12 Non-Banking Financial Companies (NBFCs) in India for 2025: 

Aditya Birla Finance

Aditya Birla Finance (ABF), a subsidiary of Aditya Birla Capital Limited offers a wide range of credit and wealth management services across India.  Aditya Birla Finance Limited is fully registered with RBI and if we consider the AUM (Assets Under Management), it ranks at the top in the finance sector. It caters to a diverse range of clients, including retail, SMEs, HNIs, and corporations in different fields like wealth management, corporate finance, personal finance, etc. They provide customized solutions in the fields of personal finance, debt capital markets, wealth management, corporate finance, SME financing, mortgage finance, and loan syndication.  

ABFL has an AAA (Stable) long-term credit rating from India Ratings, an A1+ short-term credit rating from ICRA & India Ratings; and an AA+ (Stable) perpetual debt credit rating from ICRA and India Ratings (Stable) 

Shriram Finance

Shriram Finance was established 40 years ago and is a part of Shriram Group. It is registered with the Reserve Bank of India (RBI) as a deposit-receiving NBFC and is considered among the most trusted Non-Banking Financial Services (NBFS) companies. The company has extensively focused on serving underserved and semi-urban markets, making its services accessible to a wide range of customers. 

Shriram Finance offers customized financial solutions, including commercial vehicle loans, personal loans, business loans, and deposits. It has more than 7.5 million customers and has a strong network of more than 2500 branches spread across the country. It caters to urban, semi-urban, and rural regions with a vast network of agents, dealerships, and distribution partners.  

Bajaj Finance

Bajaj Finance was established 35 years ago and is among the top Non-Banking Financial Services companies offering a wide range of financial services to both individual and commercial clients. It is a subsidiary of Bajaj Finserv Limited and is considered a deposit-receiving Non-Banking Financial Company registered with the RBI. It is the only NBFC in India to receive a global ‘BBB’ rating, as per S&P Global Rating. Besides this, Bajaj Finance also has an A1+ rating in the category of short-term borrowing.  

Bajaj Finance serves more than 50 million customers at present with their presence at more than 3000 branches spread across urban and rural regions in India with more than 150,000 distribution centers. Additionally, the NBFC is categorized as an NBFC- Investment and Credit Company that is involved in taking deposits and lending money to needy individuals and businesses in India. 

LIC Housing Finance

LIC Housing Finance Limited is counted among the top 10 NBFCs in India and offers a wide range of financial products & services. It started in 1989 as an affordable housing finance company in Mumbai, India. It now offers a vast range of financial products and services to customers across India. It is a subsidiary of Life Insurance Corporation of India (LIC), which is one of the largest insurance companies in India. 

LIC HFL primarily provides long-term finance to individuals for the purchase or construction of residential houses. It offers various loan products such as home loans, loans against property, and real estate financing to individuals, builders, and developers. They have a wide network of its agents, branches, and sales teams spread across India.  

Cholamandalam Investment & Finance Company Limited

This NBFC was established in 1978. It is a subsidiary of Murugappa Group Ltd., a specialized non-banking finance entity and is headquartered in Chennai. The company provides loans for vehicles, Multi-Utility Vehicle (MUVs), tractors, and construction equipment. Their other services include home loans, home renovation loans, balance transfers, agriculture loans, SME loans, etc. Additionally, they offer investment options like stocks, mutual funds, bonds, derivatives, demat accounts, etc.  

CIFCL also offers a wide range of investment options including stocks, mutual funds, exchange-traded funds, bonds, derivatives, web-based broking, DEMAT accounts, and freight data solutions.  The company offers unmatched financial products for both individual and commercial clients across India by offering value-based products and services to its clients. 

Mahindra & Mahindra Finance

Mahindra & Mahindra Financial Services Limited (MMFSL), also known as Mahindra Finance, ranks amongst the top-rated NBFCs in India.  It is a subsidiary of Mahindra & Mahindra Limited, one of the largest business conglomerates in India that dominates different sectors such as automotive, agribusiness, aerospace, and financial services. It was established in 1991 majorly to finance Mahindra vehicles; it has now diversified into other services. The company caters to a wide range of customers including individuals, rural households, farmers, and small businesses. It has established a strong presence in rural and semi-urban areas of India, where access to credit is limited.  

Indiabulls Housing Finance

Indiabulls Housing Finance Limited (IBHFL) is a top-rated housing loan service provider in India, offering a wide range of home loan and mortgage financing solutions. Headquartered in Gurugram, Haryana, it is a subsidiary of the Indiabulls Group. IBHFL operates under the regulatory oversight of the Reserve Bank of India (RBI) and adheres to regulatory guidelines, compliances, and best practices to ensure transparency, fairness, and stability in its operations. 

The company operates through a wide network of online platforms, offline branches, and partnerships across 200 locations in India.   

L&T Finance

L&T Finance Holdings Limited (LTFH) is a subsidiary of Larsen & Toubro Limited (L&T), one of India’s largest engineering and construction companies. It was started in 2008 and has diversified its reach across a vast customer base. Their customer base includes individuals, farmers, SMEs, and corporations spread across the country’s urban, semi-urban, and rural areas. The company has established a wide network via branches, customer service points, and digital channels, offering customers the utmost convenience in accessing their financial services.  

Muthoot Finance

Muthoot Fincorp was established in 1997 and is a part of Muthoot Pappachan Group. Headquarted in Kozhencherry, Kerala, it offers a wide range of financial services, that include gold loans, housing loans, and vehicle loans. The company has a diverse customer base which includes individuals, small businesses, and traders spread across rural, semi-urban, and urban areas. They offer immediate funds for various purposes, making it one of the most preferred lenders when it comes to disbursing loans. 

Piramal Capital and Housing Finance

Piramal Capital & Housing Finance Limited (PCHFL) is a subsidiary of Piramal Enterprises Limited, a global conglomerate. Piramal Capital & Housing Finance Limited was established in 2017 to cater to the growing demand for housing finance and other financial services in India.

They offer services including home loans, loans against property, construction finance, and corporate finance. 

PCHFL has more than 300 branches across India serving urban and rural areas catering to a wide range of customers that include individuals, developers, and corporates.

Tata Capital Financial Services

Tata Capital Housing Finance Limited (TCHFL) is a subsidiary of Tata Capital Limited. It offers commercial and infrastructure financing, wealth management, consumer loans, and Tata cards with more than 100 branches spread over the entire country. The NBFC is registered with the National Housing Bank as a housing finance company. Its wide range of products includes purchase and construction loans for residential units, the purchase of land, home improvement loans, project finance loans for developers, etc. 

HDB Financial Services 

HDB Financial Services (HDBFS), a subsidiary of HDFC Bank and is considered one of the leading non-banking financial companies (NBFC) in India. It was established in 2008 and is headquartered in Ahmedabad, Gujarat, HDBFS is known for its wide range of financial products and customer-centric services.

They specialize in retail lending, commercial lending, and asset financing. Their services include personal loans, business loans, loans against property, gold loans, auto loans, and consumer durable loans. The company also provides insurance distribution and business process outsourcing services to a diverse customer base. They have over 1,600 branches spread across urban and rural areas with millions of customers. 

NBFCs vs Banks: Key Differences Explained

Non-Banking Financial Companies (NBFCs) and Banks are both integral to the financial system, but they differ in their structure, regulation, and functions. Here’s a detailed comparison: 

How to Choose the Right NBFC for Your Financial Needs  

Check if the lender is approved by RBI: When taking any personal loan from an NBFC, check whether they are approved by the RBI. Being approved by the RBI ensures the institution adheres to lending norms and regulations. 

Compare interest rates of different NBFCs: Do some market research and compare lenders for their interest rates. Choose the option that is well within your repayment capacity. 

Check for hidden charges: Many lenders have hidden charges like processing fees or prepayment fees which the lender may not reveal upfront. Before you take any type of loan, it is important to check for all the other charges apart from the interest rates. 

Understand the eligibility criteria: For any type of loan approval, it is important to fulfil the eligibility criteria like age, credit score, salary, employment status and so on. 

Ensure to have correct documents: Ensure you submit all the required documents needed for the loan application. 

Check for prepayment and foreclosure options: Many lenders allow you to prepay or foreclose the loan, without any charge. If you know you want to repay the loan early, go for a lender that offers this option. 

Check customer reviews: Check online customer reviews on apps or other review platforms to understand customer experience with a particular NBFC. 

Check digital availability of services: For ease of use for payments, check if the NFBC offers services online or if they have their own app.  

Conclusion: The Future of NBFCs in India

While NBFCs and banks both contribute to financial inclusion, NBFCs focus on specialized services and cater to segments often underserved by banks. Banks, on the other hand, offer a comprehensive range of financial products and play a central role in the monetary system. Their complementary roles make them equally important in supporting India’s economic growth. 

The future of Non-Banking Financial Companies (NBFCs) in India looks promising as they fill a key gap in the market. NBFCs offer enhanced financial inclusion for all, especially the underserved rural areas, by offering customized financial products. The technological upgrade, access to capital, and regulatory support has enhanced the lending processes.