NBFCs and Gold Loans in India
Types of NBFCs
NBFCs come in many categories, such as housing finance, gold loan, microfinance, infrastructure and asset-finance companies.
The label covers many different businesses.
Asset finance
These fund vehicles and equipment, such as trucks and tractors.
Housing finance
HFCs lend for home purchase and construction.
Gold loan and microfinance
These specialise in loans against jewellery or small loans to poor households.
Investment and infrastructure
Some invest in shares or fund big projects like roads and power plants.
Different needs
A truck owner needs an asset-finance firm; a homebuyer needs an HFC.
Treating all NBFCs alike
Risks and business models differ.
Key takeaways
- Categories include asset finance and housing.
- Gold loan and microfinance NBFCs are specialised.
- Some fund infrastructure.
- Risks differ by type.
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