It’s a company whose fundamental business is to engage in the financing of the corporeal assets to support economic or productive activity.  

Additionally, for this purpose, the fundamental business is determined as an aggregate of financing real or physical equipment assets for supporting economic activity and income. Thus, the total asset and income should not be below 60%, respectively.

The fundamental business of a loan company is providing the finance either by making loans/advances or for activities other than its own. However, it should not include Asset Finance Company.

An investment company is a company that is engaged in the business of the acquisition of securities.

IFC is an NBFC that utilizes 75% of the total assets in the infrastructure loans along with this it comprises a minimum NOF of Rs 300 crore. Also, it consists of a credit rating of at least “A” or equivalent and a CRAR of 15%.  

IDF-NBFC is the company engaged in the flow of long-term debt in an infrastructure project. It raises the resources through the issuance of Rupee or Dollar denominated bonds of at least 5 years of maturity. 

To be noted, Infrastructure Finance Companies (IFC) is the only authority that can sponsor the finances of IDF-NBFC.

It deals in the acquisition of shares and securities that satisfy the below-mentioned conditions,

• Accept public funds
• Holds not less than 90% of total assets in the form of investment in equity shares, debt or loans, preference shares of the group of companies. 
• The size of assets is Rs 100 crore or more.
• Investment in equity shares in the companies group is not less than 60% of the assets of its total assets.
• It refrains from carrying out the financial activities mentioned in Section 45 (c) and 45 (f) under RBI Act 1934, excluding investment in bank deposits, government securities, money market instruments, investment in and loans to debt issuances of companies/group or guarantee provided on the behalf of group companies.
• It should not trade its investment in debt, shares, or loans in the group companies, excluding block sales with the motive of dilution or disinvestment.

It is a non-deposit company that is engaged in the business of factors. The financial assets under NBFC-Factor should comprise a minimum of 50% of its total assets and its income should constitute a minimum of 50%.

Under this, the promoter or promoter’s groups are sanctioned to establish a new bank. This company has the authority to hold banking services along with other financial activities (regulated by RBI or other financial sector regulators) because it is a completely owned Non-Operative Financial Holding Company (NOFHC).

MGC is the company that constitutes a minimum of 90% turnover in the mortgage business or constitutes at least 90% of gross income that comes from the mortgage guarantee business. Also, it has NOF of Rs 100 crore.

 NBFC-MFI is the non-deposit that comprise at least 85% of its assets in the nature qualifying assets that fulfill the following requirements,

• The total debts of the debtor should not be increased beyond Rs 1,00,000.
• The loan should be extended without any mortgage.
• The loan disbursed to a debtor who comprises the rural household annual income, not above Rs 1,00,000, and the semi-rural household annual income should not be more than Rs 1,60,000.  
• The loan should be repaid by the choice of a debtor, it could be weekly, biweekly (once every two weeks), or in monthly installments.
• In the first cycle, the amount of loan should not be more than Rs 50,000 and in a successive cycle, the loan amount should not exceed Rs 1,00,000.
• If the loan amount is more than Rs 15,000, the duration of the loan should be at least 24 months along with prepayment without penalty.
• The aggregate loan amount provided for income generation should be at least 50% of the total loan provided by MFIs.