Currently, e-commerce platforms offer loans in tie-ups with banks and NBFCs.
- Now, Flipkart will lend directly to customers and sellers on its platform and through its fintech App- ‘super.money’.
About NBFC
- It is a company registered under the Companies Act, 1956 or Companies Act, 2013.
- Principal Business: loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, etc.
- It does not include agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.
- The working and operations of NBFCs are regulated by RBI within the framework of the Reserve Bank of India Act, 1934.
- Significance of NBFCs
- In 2023, the contribution of NBFCs to India’s gross domestic product (GDP) stood at 12.60%
- Lending market share of NBFCs in consumer durables stood at nearly 61% in 2023.
- They have significantly outpaced commercial banks in credit growth during Fiscal Year 2025 (Boston Consulting Group).
What is the difference between banks and NBFCs?
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