What is a non-banking financial company?
A short definition for those of us who might not be in the know
NBFCs are companies that do not accept deposits. NBFCs have money as their ‘raw material’. They raise capital from the outside market in order to then turn around and lend money to corporations, institutions and individuals. NBFCs turn a profit by lending at slightly higher rates than they borrow at. This is referred to as ‘living off the spread.’