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NBFCs and their Impact on Real Estate in India
One of the major milestones that everyone wants to achieve is owning a home. Whether a person lives on his property or not, even if it is an investment, a property has its own sense of security. However, not everyone can pay full cash and buy real estate. This is when the need arises to avail a loan. While banks are the first choice for a home loan, in some cases they are unable or unwilling to impose a penalty. This is where NBFCs come into the picture.What is NBFC?
NBFCS in simple terms are the institutions that provide financial solutions and banking services without complying with the legal classification of the bank. These institutions are registered under the Companies Act of 1956. The main function of these institutions is to provide banking services such as granting loans, owning stocks, shares, debentures, debentures, credit facilities, retirement plans, etc.The Role of NBFCs In The Indian Economy
NBFCs serve the diverse financial needs of customers excluded by banks and provide solutions for new businesses, helping them grow. NBFCs complement the role of banks in meeting the growing financial needs of the country, especially with a constantly growing population. This also includes granting credit to small businesses and the unorganized sector.
Although these banks do not operate like banks, they are subject to the same set of rules and regulations as other banks.
With the growing demand for real estate purchases and a large segment made up of the middle class, non-bank finance companies are now one of the largest loan lenders when it comes to home loans.
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