NBFC Consulting & Advisory

Enterslice is a leading provider of regulatory and compliance services for Non-banking Financial Companies (NBFCs) in India. Our services enable us to help NBFCs navigate the complex regulatory landscape and achieve their business goals.

Services We Offer

Conditions Required To Register As NBFC

The company must fulfil a few prerequisites before submitting an NBFC Licence application to the RBI.

  • Under the Companies Act of 1956 or 2013, the company must be registered.

  • The minimum capital (Net Owned Fund) is 10(Ten) crores of rupees.

  • Financial activities should be the applicant's primary line of business. A corporation can become an NBFC if its financial flow represents more than 50% of its total capital assets.

  • At least one director from the financial sector should be on the board.

  • It is recommended that the CIBIL (Credit Information Bureau Limited) records be clear.

Types of NBFC

NBFC’s are categorized in the following

Investment and Credit Company (NBFC-ICC)

Any financial institution that conducts asset finance as its primary business, whether through loans, advances, or another method, is considered an Investment and Credit Company (ICC-NBFC). It also acquires securities.

Microfinance Company (NBFC-MFI)

An NBFC will be qualified as NBFC-MFI if at least 85% of its assets are qualifying assets that meet the following requirements:

  • Loan disbursed by it to a borrower with an annual household income of not more than Rs. 60,000 in rural households or Rs. 1,20,000 in urban and semi-urban households, the loan amount is not more than Rs. 35,000 in the first cycle.

  • In the subsequent cycles, the total amount of the borrower's debt is not more than Rs. 50,000, and the loan duration is not less than 24 months for loans over Rs. 15,000 with prepayment without penalty. The loan is to be extended without any security.

  • At the borrower's discretion, the loan can be repaid in weekly, fortnightly, or monthly instalments if the total amount of loans given for income generation is greater than or equal to 75% of all loans made by MFIs.

Infrastructure Finance Company (NBFC-IFC)

It is an NBFC that invests 75% of its assets in loans for infrastructure and require a minimum of Rs. 300 crores in Net Owned Fund. This category of NBFC must have a credit rating of at least "A" or a comparable CRAR of at least 15%. Major companies of this category are GMR Infrastructure Ltd. and Hindustan Construction Company etc. who are conducting the principal business of providing infrastructure finance through loans.

Factoring Company (NBFC-Factor)

This kind of NBFC is rarely seen in India. Such organisation often buy loans or advances at a much-discounted rate from lenders and after that, they change the repayment table of the debtor to ensure effortless settlement adding a tiny profit. It does not include regular loans by a bank against the security of receivables, etc. A minimum NOF amount of Rs. 5 crore is required for NBFC-factoring companies. Additionally, at least 75% of the company's financial assets should be used for the factoring business. At least 75% of its revenue must come from gross income.

Housing Finance Companies (NBFC-HFC)

A housing finance company ("HFC") is another form of a non-banking financial company ("NBFC") which primarily is engaged in the business of providing finance for housing. These type of NBFC’s are majorly engaged in the principal business of Housing Finance

Core Investment Company (NBFC-CIC)

An NBFC-CIC holds at least 90% of its assets through investments in equities, bonds, or loan group companies. 60% of the 90% should be invested in equity shares or securities that automatically convert to equity shares within ten years after the date of issuance. Companies of this category does not engage in any transactions involving its holdings in bonds, loans, or shares of group companies other than block sales for dilution or disinvestment, further It doesn't engage in any activities listed in Sections 45(c) or 45(f) of the RBI Act of 1934. To qualify as NBFC-CIC the company’s asset value shall be of at least Rs. 100 crore.

Account Aggregators (NBFC-AA)

NBFC Account Aggregator is that financial entity which functions as the Account Aggregator for the customers of NBFC. NBFC-AA accumulates and provides information concerning multiple accounts which are held by the customers in various NBFC entities.

Peer to Peer Lending Platforms (NBFC-P2P)

The P2P lending model is based on the crowd-funding model. Most of the P2P lending platforms are organized as NBFC (Non-Banking Financial Companies) fintech companies. Unlike traditional banking and financial institutions, the P2P model is a modern credit model to meet current business credit needs. The P2P lending offers a platform for aggregation of all types of savings from individuals, high net worth (HNI), Hindu Undivided Families (HUFs) and other non-banking institutions. This platform can offer services such as credit assessment, recovering loans, and so on. The platform generally co-ordinates the transaction between the lender and the borrower.

Infrastructure Debt Fund NBFC (IDF-NBFC)

IDFs raise funds for lengthy infrastructure projects using bonds. The bonds have a minimum 5-year maturity for investors and are issued in several currencies. It makes it easier for long-term debt to be invested in infrastructure projects. IDF-NBFCs can only be sponsored by IFC-NBFCs.

Mortgage Guarantee Companies (MGC)

Mortgage guarantee businesses account for at least 90% of NBFC-MGCs' revenue, or they account for at least 90% of their gross income. Their NOF is at least Rs. 100 crores.

Services Provided By Enterslice.

Enterslice provides NBFCs with various services, such as registration, compliance, and consulting. The following steps are frequently included in Enterslice's working process with NBFCs:

1. Consultation

The first phase with NBFCs is comprehending the client's company strategy, goals, and needs. Enterslice offers a customised solution that satisfies the client's needs.

2. Registration

As per the Reserve Bank of India Directions, 2016, Enterslice helps NBFCs register with the Reserve Bank of India (RBI). To achieve this, the customer must prepare the required paperwork, submit the application to the RBI, and communicate with the RBI on their behalf.

3. Regulatory Compliance

Enterslice offers NBFCs ongoing compliance services to ensure they adhere to the rules and regulations set forth by the RBI. The rules include statutory records, submitting regular returns, and assuring adherence to standards for capital adequacy, asset categorisation, and provisioning.

4. Risk management

Enterslice aids NBFCs in creating and putting into place a robust framework for risk management to detect, evaluate, and reduce a variety of risks, including operational risk, market risk, credit risk, and liquidity risk. This includes evaluating the customer's current risk management procedures, creating tailored risk management policies and procedures, and staff training for the client.

5. Advice Services

To assist NBFCs in achieving their corporate goals, Enterslice offers strategic advisory services. It covers strategic projects like mergers and acquisitions, financial modelling, fundraising, and company planning.

6. Other Services

Enterslice also provides additional services to NBFCs, including accounting and tax services, legal counsel, and technology solutions.

7. Accounting and taxation

To assist NBFCs in managing their financial and tax-related duties, Enterslice offers accounting and taxation services. This includes creating financial statements, submitting tax returns, and following tax laws and regulations. The skilled accountants and tax experts at Enterslice can assist NBFCs in adhering to India's intricate tax rules and regulations.

8. Legal Services

To assist NBFCs in managing their legal and regulatory duties, Enterslice offers legal services. This includes support with creating and assessing legal contracts, ensuring adherence to rules and laws, and settling legal disputes. The skilled legal team at Enterslice can assist NBFCs in navigating India's complicated legal system.

9. Digital Solution

Enterslice provides NBFCs with digital solutions to assist them in organising their business processes and increasing productivity. This entails creating specialised software applications, implementing corporate resource planning (ERP) systems, and offering cybersecurity services. The team of skilled technology professionals at Enterslice can assist NBFCs in utilising technology to boost their business processes and client experiences.

10. Due Diligence

To assist NBFCs in evaluating the creditworthiness and financial stability of potential borrowers or investment prospects, Enterslice offers due diligence services. This entails running background checks, reviewing financial records, and assessing the state of the market. The team of knowledgeable due diligence experts at Enterslice can assist NBFCs in managing risks and making wise investment decisions.

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