What Are the Types of NBFCs in India?

S. No

Category/Type of NBFC

Description

(i)

Investment and Credit Company (ICC)

ICC refers to an NBFC company that acts as a financial institution primarily engaged in asset finance. This includes providing financing whether through loans, advances or other means for activities that are not its own, as well as acquiring securities. 

(ii)

Housing Finance Company (HFC)

HFC shall mean a company that fulfils the following conditions set forth by RBI:

(a) It is an NBFC whose financial assets, in the business of providing finance for housing, constitute at least 60% of its total assets (netted off by intangible assets). Housing finance for this purpose shall mean providing finance as stated in paragraph 10(8) of the Reserve Bank of India (Housing Finance Companies) Directions, 2025.

(b) Out of the total assets (netted off by intangible assets), not less than 50% should be by way of housing finance for individuals as stated at clauses (i) to (v) of Paragraph 10(8) of the aforementioned Directions for HFCs.

(iii)

Infrastructure Finance Company (IFC)

IFC is a type of non-banking finance company that deploys at least 75 per cent of its total assets towards infrastructure lending.

(iv)

Infrastructure Debt Fund (IDF-NBFC)

IDF-NBFC means a non-deposit taking NBFC which is permitted to (a) refinance post commencement operations date (COD) infrastructure projects that have completed at least one year of satisfactory commercial operations; 

and (b) finance toll operate transfer (TOT) projects as the direct lender.

(v)

Core Investment Company (CIC)

CIC is a NBFC carrying on the business of acquisition of shares and securities which satisfies the following conditions:

(a) It holds not less than 90% of its net assets in the form of investment in equity shares, preference shares, debt or loans in group companies;

(b) Its investments in the equity shares (including instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue) in group companies and units of Infrastructure Investment Trusts (InvITs) only as sponsor constitutes not less than 60% of its net assets;

(c) Provided that the exposure of such CICs towards InvITs shall be limited to their holdings as sponsors and shall not, at any point in time, exceed the minimum holding of units and tenor prescribed in this regard by SEBI (Infrastructure Investment Trusts) Regulations, 2014, as amended from time to time. It does not trade in its investments in shares, debt or loans in group companies except through block sale for the purpose of dilution or disinvestment;

(d) it does not carry on any other financial activity referred to in Section 45I(c) and 45I(f) of the RBI act, 1934 except (i) investment in bank deposits, money market instruments, government securities, bonds or debentures issued by group companies; (ii) granting of loans to group companies; and (iii) issuing of guarantees on behalf of group companies;

(e) Its asset size is Rs. 100 crore or above; and

(f) It accepts public funds

(vi)

Micro Finance Institution (NBFC-MFI)

“NBFC-MFI” means a non-deposit taking NBFC which has a minimum of 60 percent of the total assets (netted off by intangible assets) deployed towards “microfinance loans” as defined under Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Directions, 2025 as under:

(a) A microfinance loan is defined as a collateral-free loan given to a household having annual household income up to Rs. 3,00,000. For this purpose, the household shall mean an individual family unit, i.e., husband, wife and their unmarried children.

(b) All collateral-free loans, irrespective of end use and mode of application/ processing/ disbursal (either through physical or digital channels), provided to low-income households, i.e., households having annual income up to Rs. 3,00,000, shall be considered as microfinance loans.

(c) To ensure collateral-free nature of the microfinance loan, the loan shall not be linked with a lien on the deposit account of the borrower.

(d) The NBFCs shall have a board-approved policy to provide the flexibility of repayment periodicity on microfinance loans as per borrowers’ requirement.

(vii)

Non-Banking Financial Company – Factors (NBFC-Factors)

NBFC-Factor is a non-deposit taking NBFC engaged in the principal business of factoring. The financial assets in the factoring business should constitute at least 50 per cent of its total assets and its income derived from factoring business should not be less than 50 per cent of its gross income.

(viii)

Mortgage Guarantee Companies (MGC)

MGC means a company registered as mortgage guarantee company which primarily transacts the business of providing mortgage guarantee i.e., a guarantee for the repayment of an outstanding housing loan and interest accrued thereon up to the guaranteed amount to a creditor institution, on the occurrence of a trigger event. 

A mortgage guarantee company shall be deemed to primarily transact the business of providing mortgage guarantee when at least 90 per cent of the business turnover is mortgage guarantee business or at least 90% of the gross income is from mortgage guarantee business.

(ix)

Standalone Primary Dealers (SPDs)

SPDs are primarily NBFCs which have been granted authorisation to undertake the Primary Dealer activities in Government Securities. SPDs may undertake a set of core and non-core activities which are clearly defined. 

SPDs support G- Sec market (both primary and secondary) through various obligations like participating in primary auctions, market making in G- Secs, predominance of investment in G-Secs, achieving minimum secondary market turnover ratio, etc.

(x)

Non-Operative Financial Holding Company (NOFHC)

NOFHC stands for Non-Operative Financial Holding Company, which is defined in the Reserve Bank of India (Non-Operative Financial Holding Companies) Directions, 2025 (updated as of 5 December 2025). 

This type of non-deposit taking NBFC does not accept deposits. It holds shares of a banking company and shares of all other financial services companies within its group, whether these companies are regulated by the Reserve Bank or by any other financial regulator, as permitted by the applicable regulatory guidelines. 

(xi)

NBFC – Account Aggregator (NBFC-AA)

NBFC-AA means a non-banking financial company as notified under in sub-clause (iii) of clause (f) of section 45-I of the RBI Act, that undertakes the business of an account aggregator, for a fee or otherwise. 

The “business of an account aggregator” means the business of providing under a contract, the service of, retrieving or collecting such financial information pertaining to its customer, as may be specified by the Reserve Bank from time to time; and consolidating, organizing and presenting such information to the customer or any other financial information user as may be specified by the Bank; 

Provided that, the financial information pertaining to the customer shall not be the property of the Account Aggregator, and not be used in any other manner.

(xii)

NBFC – Peer to Peer Lending Platform (NBFC-P2P)

NBFC-P2P refers to an NBFC that operates a Peer-to-Peer Lending Platform i.e., acting as an intermediary providing loan facilitation services to participants via an online medium or otherwise.