How NBFCs help the non banked?
NBFCs play a crucial role in providing financial services to individuals and businesses who lack
access to traditional banking services. Here are a few ways in which NBFCs help those who
lack banking services:
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Microfinance : NBFCs provide microfinance services to individuals and small businesses who
may not have access to traditional banking services. These institutions provide small loans to
help these individuals and businesses meet their financial needs and achieve their financial
goals.
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Alternative lending options : For individuals and businesses who may not meet the strict
requirements of traditional lenders, NBFCs provide alternative lending options. These
institutions offer flexible loan repayment options and competitive interest rates, making it easier
for those who lack access to traditional banking services to secure the financing they need.
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Finance for specific assets : NBFCs such as Asset Finance Companies (AFCs) provide
financing services for the purchase of specific assets such as vehicles, machinery, and
equipment. This helps individuals and businesses who lack access to traditional banking
services to acquire the assets they need to run their operations smoothly.
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Housing finance : NBFCs such as Housing Finance Companies (HFCs) provide financing
services for the purchase and renovation of homes, as well as home loans. This helps
individuals who lack access to traditional banking services to secure the financing they need to
purchase or renovate their homes.
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Infrastructure finance : NBFCs such as Infrastructure Finance Companies (IFCs) provide
financing services for infrastructure projects such as roads, bridges, and power plants. This
helps governments and businesses who lack access to traditional banking services to secure
the financing they need to develop and improve their infrastructure.
In conclusion, NBFCs play an important role in providing financial services to those who lack
access to traditional banking services, and they help to bridge the gap between those who need
financial assistance and those who can provide
NBFCs (Non-Banking Financial Companies) play an important role in improving financial
inclusion by providing access to financial services to those who are excluded from the traditional
banking system. This includes providing access to credit, insurance, savings, and other financial
services to those who may not have access to them through traditional banking channels.
NBFCs also provide access to financial services to those who may not have the necessary
documentation or credit history to access traditional banking services. Additionally, NBFCs can
provide access to financial services in remote and rural areas where traditional banking services
may not be available.