NBFC License: Step-by-Step Guide in All India (2025)

📌 1. Introduction

A Non-Banking Financial Company (NBFC) is a financial institution that offers banking services without holding a banking license. Regulated by the Reserve Bank of India (RBI), NBFCs are pivotal in providing loans, asset finance, investment advisory, and microfinance—especially to sectors underbanked by traditional banks.

🔔 2025 Update: RBI has introduced new regulations under the Scale-Based Regulatory (SBR) Framework, which classifies NBFCs into four layers, strengthening supervision.

🏷️ 2. Types of Licenses Offered

NBFCs in India are categorized based on activities:

1. NBFC-Investment and Credit Company (NBFC-ICC)
2. NBFC-Account Aggregator (NBFC-AA)
3. NBFC-Micro Finance Institution (NBFC-MFI)
4. NBFC-Factors
5. Infrastructure Finance Company (NBFC-IFC)
6. Core Investment Company (CIC)
7. Mortgage Guarantee Company (MGC)
8. NBFC-P2P (Peer-to-Peer Lending)
9. NBFC-Housing Finance Company (NBFC-HFC)

👥 3. Who Needs These Services?

NBFC licenses are ideal for:

• Fintech startups offering digital lending
• Companies planning microfinance or personal loans
• Platforms offering investment, leasing or hire purchase services
• Organizations managing infrastructure or housing finance

📚 Example (2024): A Jaipur-based fintech startup raised ₹15 crore in Series A funding after acquiring an NBFC-ICC license and launching MSME lending products.

✅ 4. Why Choose a License Registration Service Provider?

💡 Here’s why professionals matter:

• Ensure 100% compliance with RBI norms
• Expert assistance in drafting financial & business models
• Faster application filing on COSMOS RBI portal
• Post-license support for annual filings, audits, and returns

🛡️ Errors in net-owned fund (NOF) reporting or credit policy can delay approval for months.

📝 5. Registration Process

Step-by-step NBFC License Process:

1. Incorporate a Private or Public Limited Company
2. Ensure Net Owned Funds (NOF) of minimum ₹2 crore
3. Prepare required documents and policies
4. Open bank FD for capital funds
5. Apply through the RBI Portal
6. Upload documents and track status
7. Wait for RBI inspection & approval

📄 6. Required Documents

• Certificate of Incorporation
• PAN, DIN, Aadhaar of directors
• Bank statement showing NOF
• Business Plan & Financial Projections
• Credit & Risk Management Policy
• IT Infrastructure details
• Board Resolution for NBFC formation
• Audited Financials (if applicable)

💰 7. Cost Involved

💸 Ongoing Costs: Annual audits, RBI reporting, tax filings.

⏳ 8. Time Taken

⏱️ Average Timeline:

• Documentation: 2–4 weeks
• RBI Review & Scrutiny: 90–180 days
• License Grant: Total 4–6 months

🕵️ Tip: Pre-verification by experts can reduce RBI clarifications.

⚠️ 9. Common Mistakes to Avoid

🚫 Avoid these to save time and cost:

• Not maintaining ₹2 crore Net Owned Funds
• Weak financial projections or business plan
• Missing key compliance documents (e.g., AML/CFT policy)
• Failing to set up a dedicated bank account for capital
• Uploading incomplete or unclear documents to RBI portal

📞 10. Call-to-Action (CTA)

Need help with your NBFC License in India?

📧 Email: opriyatrendingpvtltd@gmail.com
📱 WhatsApp: +91 7588756518
🌐 Visit: https://opriyatrending.in

👉 Let experts handle your RBI filings, documentation, and compliance.

❓ 11. FAQs

Q1: What is the minimum capital required for an NBFC license?
A: ₹2 crore Net Owned Funds (NOF) is mandatory.

Q2: Can an LLP apply for NBFC registration?
A: No. Only a Private/Public Limited Company can apply.

Q3: How is an NBFC different from a bank?
A: NBFCs can’t accept demand deposits and don’t have access to payment systems like banks.

Q4: How long is the license valid?
A: It’s valid indefinitely, but NBFCs must comply with annual RBI filings and inspections.

Q5: What’s the penalty for operating without a license?
A: RBI may impose heavy fines and even initiate criminal proceedings.