Drawbacks of NBFC
- They are not subjected to the same regulations as banks.
- They may not offer good level of protection for your loan.
- They cannot accept demand deposits from public.
- There is a risk of improper financial stability.
- They charge high interest rates on loans compared to banks.
- They give limited access to payment services.
- They have limited branch network compared to bank.
NBFC Full Form – Non-Banking Financial Company
NBFC full form: In the realm of financial services, banks have traditionally been the go-to institutions for managing money, providing loans, and safeguarding deposits. However, alongside these traditional banking institutions, Non-Banking Financial Companies (NBFCs) have emerged as formidable players, offering a diverse range of financial services and playing a crucial role in shaping the financial landscape of India.
In this article, we will learn about the full form of NBFC, its history, services, requirements, examples, and drawbacks.
Table of Content
- What is the Full Form of NBFC?
- History of NBFCs
- Services of NBFC
- Requirements for NBFC
- Examples of NBFCs in India
- Drawbacks of NBFC