- An AFC(Asset Finance Company) is a company which is a financial institution carrying on as its principal business the financing of physical assets supporting productive/economic activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and material handling equipments, moving on own power and general purpose industrial machines.
- Principal business for this purpose is defined as aggregate of financing real/physical assets supporting economic activity and income arising therefrom is not less than 60% of its total assets and total income respectively.
Investment Company :
IC means any company which is a financial institution carrying on as its principal business the acquisition of securities.
means any company which is a financial institution carrying on as its principal business the providing of finance whether by making loans or advances or otherwise for any activity other than its own but does not include an Asset Finance Company
Infrastructure Finance Company
is a non-banking finance company
a) which deploys at least 75% of its total assets in infrastructure loans.
b) has a minimum Net Owned Funds of Rs300 crore
c) has a minimum credit rating of ‘A ‘or equivalent
d) and a CRAR of 15%.
CIC – ND – SI :
Systematically Important Core Investment Company (CIC-ND-SI) is an NBFC carrying on the business of acquisition of shares and securities, satisfies the given conditions:
- It holds not less than 90% of its Total Assets in the form of investment in equity shares, preference shares, debt or loans in group companies.
- its investments in the equity shares in group companies constitutes not less than 60% of its Total Assets.
- 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
- it does not carry on any other financial activity except investment in bank deposits, money market instruments, government securities, loans to and investments in debt issuances of group companies or guarantees issued on behalf of group companies.
- Its asset size is Rs100 crores or above.
- It accepts public funds
IDF – NBFC(Infrastructure Debt Fund – Non Banking Financial Companay :
- IDF- NBFC is a company registered as NBFC to facilitate the flow of long term debt into infrastructure projects.
- IDF- NBFC raise resources through issue of Rupee or Dollar denominated bonds of minimum 5-year maturity.
- Only Infrastructure Finance Companies (IFC) can sponsor IDF – NBFCs.
Non Banking Financial Company – Micro Finance Institution :
NBFC-MFI is a non-deposit taking NBFC having not less than 85% of its assets in the nature of qualifying assets which satisfy the following criteria:
- loan disbursed by an NBFC-MFI to a borrower with a rural household annual income not exceeding Rs 1,00,000 or urban and semi-urban household income not exceeding Rs 1,60,000;
- loan amount does not exceed Rs 50,000 in the first cycle and Rs 1,00,000 in subsequent cycles;
- total indebtedness of the borrower does not exceed Rs 1,00,000;
- tenure of the loan not to be less than 24 months for loan amount in excess of Rs 15,000 with prepayment without penalty;
- loan to be extended without collateral;
- aggregate amount of loans, given for income generation, is not less than 50 percent of the total loans given by the MFIs;
- loan is repayable on weekly, fortnightly or monthly instalments at the choice of the borrower.
Non Banking Financial Company – 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 percent of its total assets and its income derived from factoring business should not be less than 50 percent of its gross income.
Mortgage Guarantee Companies :
MGC are financial institutions for which at least 90% of the business turn over is mortgage guarantee business or at least 90% of the gross income is from mortgage guarantee business and net owned fund is Rs 100 crore.
Non – Operative Financial Holding Company (NOFHC) :
- It is the financial institution through which promoter / promoter groups will be permitted to set up a new bank.
- It’s a wholly – owned Non-Operative Financial Holding Company (NOFHC) which will hold the bank as well as all other financial services companies regulated by RBI or other financial sector regulators.