Funding in NBFCs
Funding in NBFCs
An NBFC can only grow if it has capital behind it. Whether it’s consumer lending, SME finance, gold loans, vehicle loans, or fintech partnerships, liquidity determines scale, pricing, and portfolio quality. Getting that funding requires compliance readiness, transparent financials, strong governance, and a clear lending thesis.
We help NBFCs raise the right kind of capital—from the right sources—at the right time.
Funding Support We Offer
Capital Planning
Assessing fund requirement, leverage, and growth forecasts
Building utilisation strategy aligned with RBI norms
Stress testing based on product and portfolio behaviour
Fundraising Assistance
Term loans and credit lines from banks/NBFCs
Co-lending and debt partnerships
Assignment/securitisation of loan pools
Private equity, family office, and investor funding
Subordinated debt and preference capital
Readiness & Representation
Data room preparation and financial modelling
Portfolio performance analysis and MIS standardisation
Policies, compliance, underwriting, and governance review
Lender/investor meetings, documentation, negotiation support
Post-Funding Compliance
Reporting to lenders and rating agencies
Covenant monitoring and capital adequacy tracking
Regulatory filings and disclosures
Common Funding Sources for NBFCs
Banks and large NBFCs
Mutual funds, AIFs, and debt investors
Fintechs through co-lending and FLDG models
Private equity and strategic investors
Capital markets (for eligible NBFCs)
Promoter and group infusion
Each source comes with different pricing, security, reporting, and compliance expectations.
Documents Usually Required
Audited financials and ITRs
Portfolio performance and ageing reports
NOF, capital adequacy, NPA, and provisioning data
KYC, governance policies, RBI returns
Business plan, underwriting model, recovery framework
Board resolutions and ownership details
Funding Process
Requirement and capacity assessment
Documentation and portfolio review
Investor/Lender identification
Due diligence, negotiations, sanction
Agreement execution and disbursement
Ongoing compliance and reporting
Why NBFCs Need Structured Funding
Sustain and scale lending operations
Reduce cost of capital over time
Improve credit ratings and institutional reputation
Enable product expansion and new geographies
Maintain liquidity buffers and regulatory comfort
Frequently Asked Questions
Possible, but lenders prefer operational history and portfolio performance.
10 years, with renewals every 10 years. However, you must file a maintenance declaration between the 5th and 6th year.
For most institutional debt—yes.
Yes, subject to FEMA, FDI rules, and RBI compliance.
Yes, they provide capital access while sharing risk.