StartupFloraHow to Get NBFC Loan for Business in India?
NBFC term stands for Non-Banking Financial Company. These are financial institutions that provide banking and lending services without holding a banking license. The concept of NBFCs was introduced in India in the 1960s, regulated by the Reserve Bank of India (RBI) under the RBI Act, 1934.
NBFCs were created to meet the growing financial needs of individuals and small businesses where traditional banks had limited reach.
As per RBI data, there are over 9,500 registered NBFCs in India offering loans, investments, leasing, and credit facilities.
In the financial year 2024–25 (FY25), NBFCs sanctioned a total of 11 crore personal loans worth ₹1,06,548 crore. FinTech NBFCs alone contributed 74% of this loan volume, proving their massive role in India’s lending ecosystem.
Types of NBFC Business Loans
- Secured NBFC Loan for Business
A secured loan is backed by collateral like property, machinery, or gold. These loans have lower interest rates and higher limits.
Best for: Established businesses needing expansion or machinery finance.- Unsecured NBFC Loan for Business
These loans are provide without collateral, mainly based on business turnover, credit score, and cash flow.
Best for: Startups, small traders, and MSMEs seeking short-term capital
- Unsecured NBFC Loan for Business
Difference Between Banks, Pioneer Lender, and NBFC
| Feature | Banks | Pioneer Lender | NBFC |
| Regulator | RBI | Private Lending Platform | RBI |
| Accept Deposits | Yes | No | No |
| Loan Approval Speed | Slow (3–7 days) | Fast (1–2 days) | Fast (1–3 days) |
| Collateral Requirement | Usually Required | Optional | Optional |
| Target Audience | Individuals & Big Businesses | Startups & Freelancers | MSMEs & Small Businesses |
| Interest Rate | Lower | Higher | Competitive |
| Flexibility | Limited | High | High |
How NBFC Works in India?
NBFCs collect funds through equity, debentures, or borrowings and lend to businesses and individuals. They operate under RBI regulations and use digital tools for quick credit evaluation.
NBFCs focus on underbanked sectors, such as rural entrepreneurs, MSMEs, and startups, providing instant approvals and flexible repayment plans unlike traditional banks that require heavy documentation.
Top 10 NBFC Companies Perfect for Business Loans in India?
- Bajaj Finance Ltd
- Cholamandalam Investment & Finance Company
- Tata Capital Financial Services
- Muthoot Finance Ltd
- Shriram Finance Ltd
- SBI Cards & Payment Services
- L&T Finance Ltd
- HDB Financial Services
- Authum Investment & Infrastructure Ltd
- Sundaram Finance Ltd
These companies offer various loan types including working capital, machinery, term, and invoice financing with flexible repayment and digital processing.
How StartupFlora Guides You to Get NBFC Business Loan?
StartupFlora helps entrepreneurs and MSMEs choose the best NBFCs for business loans. From document preparation to loan application, eligibility checking, and approval, StartupFlora provides end-to-end support.
We compare multiple NBFC offers, analyze interest rates, and help you secure loans under government-friendly schemes like CGTMSE, PMEGP, and MUDRA.
Popular NBFC Loan Providers in India
- Bajaj Finserv Business Loan
- Tata Capital Business Loan
- L&T Finance MSME Loan
- HDB Financial Loan
- Shriram Finance Working Capital Loan
Conclusion
Getting a business loan from an NBFC is one of the most efficient ways to grow your business. With fast approval, minimal documents, and digital lending options, NBFCs empower MSMEs and startups to achieve financial freedom.