The Top 10 NBFCs in India, 2023

Updated On : May 2023

NBFCs play an important role in the Indian economy. They provide a wide range of financial services to businesses and individuals including asset finance, loan origination and servicing, investment banking and debt collection etc. With so many NBFCs to choose from, it can be hard to know which one is right for you.

Definition of a Non-Banking Financial Company (NBFC)

A Non-Banking Financial Company (NBFC) is an organization that provides banking and financial services without having a banking license. They provide traditional banking services like loans and deposits, but are not allowed to accept demand deposits. NBFCs are regulated by the Reserve Bank of India (RBI).

NBFCs have grown in importance in India over the past few years, becoming an important source of credit for businesses and consumers alike. Most NBFCs operate in lending, leasing, hire-purchase activities, and other allied financial services. Some of them also specialize in money transfer services, foreign exchange services, stockbroking and debt collection.

Overview of the Indian NBFC Industry in 2023

The NBFC industry in India is growing at an exponential rate with its impact becoming more visible across different sectors. As on 2023, the size of the NBFC sector is estimated to be around USD 326 billion. This is driven by rising demand for niche financial services provided by non-bank lenders, such as micro lending and small business financing.

The growth of the NBFC sector can be attributed to two key factors:

  • The demand for loans by the MSME (Micro, Small and Medium Enterprises) sector who finds it difficult to borrow from banks due to stringent eligibility criteria
  • The increasing number of digital lenders offering alternative financing options to traditional banking institutions

With more NBFCs entering the market, competition has also increased in terms of pricing and loan offerings. This has further spurred the growth of non-banking finance companies providing innovative products at affordable prices.

Here are the 10 Top NBFCs in India in 2023

  • Aditya Birla Capital

    Aditya Birla Capital is a prominent non-banking financial company (NBFC) in India, providing a diverse range of financial services including lending, insurance, wealth management, and asset management. The company has a strong presence across India, with over 700 branches and 135,000 distribution partners. With a focus on customer-centricity, Aditya Birla Capital offers tailored financial solutions to meet the evolving needs of its customers.

    The company's robust risk management framework, technology-driven processes, and experienced management team has enabled it to consistently deliver strong financial performance and maintain high credit ratings. Aditya Birla Capital continues to expand its product portfolio, invest in digital capabilities, and enhance its customer experience to further strengthen its position as a leading NBFC in India.

  • Bajaj Finserv

    Bajaj Finserv is a leading non-banking finance company (NBFC) in India, offering a wide range of financial services across various sectors such as lending, insurance, and wealth management. With a diverse portfolio of products and services, Bajaj Finserv has become one of the most trusted NBFCs in the country. The company's innovative approach to financial solutions has allowed it to provide customers with unique and customized offerings that cater to their specific needs.

    With a strong presence in both urban and rural areas, Bajaj Finserv has become a household name, synonymous with trust and reliability. This NBFC has consistently ranked among the top 10 non-banking finance companies in India, and is expected to maintain its position in 2023 and beyond.

  • L&T Finance Holdings Limited

    L&T Finance Holdings Limited is one of the leading NBFCs in India, with a net worth of over US$12 billion. The company operates primarily in the financial services industry, offering a range of products and services such as asset finance, infrastructure finance, and rural finance, among others. In addition to its financial services arm, L&T Finance Holdings Limited also has diversified interests in several other sectors, including infrastructure, power, energy, and more.

    Over the past few years, L&T Finance Holdings Limited has demonstrated steady growth and has built a strong reputation in the industry. The company's financial performance has been consistently impressive, which has earned it the respect and admiration of analysts and investors alike. L&T Finance Holdings Limited's commitment to delivering value to its customers and shareholders, coupled with its strong financials, has contributed to its positive reputation in the market.

  • Cholamandalam Investment and Finance Company Limited

    The company is a subsidiary of the Murugappa Group, a diversified conglomerate with a strong presence in the Indian market. CIFCL's portfolio includes offerings in vehicle finance, home loans, SME loans, and corporate finance, among others. With a network of over 1,100 branches and presence in over 400 rural locations, CIFCL has established itself as a key player in the financial services industry in India.

    CIFCL's strong focus on customer service and innovative product offerings has helped it establish a loyal customer base. Additionally, the company's solid financial performance has earned it recognition in the industry, with several awards and accolades to its name. Overall, Cholamandalam Investment and Finance Company Limited is a well-regarded NBFC in India that has demonstrated consistent growth and innovation. Its commitment to customer service and technology, coupled with its strong financial performance, make it an attractive investment option in the Indian market.

  • Muthoot Fincorp

    Muthoot Fincorp is a non-banking finance company that specializes in providing financial services to individuals, small businesses, and rural communities in India. Established in 1997, Muthoot Fincorp is a part of the Muthoot Pappachan Group, and has grown to become one of the top non-banking finance companies in India. The company offers a range of financial services, including gold loans, microfinance, affordable housing loans, and vehicle loans.

    Muthoot Fincorp operates through a network of over 3,600 branches across India, and its customer base includes over 22 lakh individuals and small businesses. The company's commitment to customer service and innovation has helped it maintain a strong market position, and it is widely recognized for its ethical business practices and customer-centric approach. Muthoot Fincorp is a company that is well-placed to continue its growth trajectory, and is one of the top non-banking finance companies in India to watch in the coming years.

  • Reliance Capital

    Reliance Capital is one of the leading non-banking financial companies in India, offering a wide range of financial services to individuals and businesses across the country. Founded in 1986, the company has since established itself as a trusted name in the financial sector, with a strong presence in areas such as asset management, insurance, and capital markets.

    In recent years, Reliance Capital has undergone significant expansion, with a focus on diversifying its range of financial offerings and increasing its reach across the country. With a committed leadership team and a strong reputation for quality and trust, Reliance Capital is well-positioned to maintain its position as a key player in India's rapidly evolving financial landscape.

  • Shriram Finance Ltd

    Shriram Finance Ltd, headquartered in Chennai, India, is a leading non-banking finance company that specializes in retail finance. The company has a PAN India presence with over 946 branches and counts over 15,000 employees as part of its team. Shriram Finance Ltd is recognized for its customer-centric approach and offers a wide range of financial products and services to support its clients' diverse needs, including personal loans, business loans, gold loans, and real estate finance.

    Shriram Finance Ltd has established a strong foothold in the Indian financial industry and is often considered one of the top 10 non-banking finance companies in India today. With a solid track record of growth and customer satisfaction, Shriram Finance Ltd is well-positioned to continue its success in the years to come.

  • Poonawalla Fincorp

    Poonawalla Fincorp is a prominent non-banking finance company (NBFC) based in India, serving customers across various sectors including agriculture, small and medium enterprises (SMEs), rural and semi-urban markets. The company has established itself as a leading player in the industry, with a wide range of product offerings including loans, customized financial solutions and advisory services. With a steadfast commitment to customer satisfaction, Poonawalla Fincorp has built a strong reputation for its innovative and customer-centric approach towards business.

    The company's consistent growth and profitability over the years bear testimony to its robust business model, and its endeavors to establish a strong presence in the NBFC landscape have earned it a spot among the top non-banking finance companies in India.

  • Edelweiss Financial Services

    Edelweiss Financial Services is a prominent non-banking finance company in India renowned for providing diversified financial products and services to corporate, retail, and high net worth individual clients. With a robust network spanning across India, the company offers a vast range of financial solutions, including investment banking, asset management, brokerage, insurance brokerage, and more.

    Edelweiss Financial Services prides itself on its extensive experience and innovation in financial solutions and operates with the highest standards of integrity, ethics, and corporate governance. The company's approach to risk management and asset quality is commendable, making it a preferred choice among investors. It continues to be a crucial player in the non-banking finance industry in India, offering comprehensive and customized solutions to cater to the diverse needs of its clients.

  • Mahindra & Mahindra Financial Services Limited

    The company is a subsidiary of Mahindra & Mahindra Limited, one of the leading automotive manufacturers in India. MMFSL primarily operates in the rural and semi-urban areas of India, providing financial solutions for vehicles, tractors, and other farming equipment, as well as personal and commercial loans. The company has a strong presence in over 27 states in India, with over 1,300 branches and a customer base of over 6 million.

    MMFSL's focus on serving the rural and semi-urban areas has helped it establish a loyal customer base, as it offers customized financial solutions that cater to the specific needs of its customers. Additionally, the company has placed a strong emphasis on digital initiatives to improve operational efficiency and enhance the customer experience.


India’s NBFC sector has experienced rapid growth in recent years and is on track to become even more important in the coming years. These NBFCs have grown from strength to strength over the years and have significantly contributed to India’s economic growth. As India’s NBFC sector continues to grow, these top 10 NBFCs are expected to remain in the lead and will be key players in the sector in the future.

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