The NBFC means Non-Banking Financial Companies registered under the Companies Act and works for advances and loans, bonds, share acquisition, debentures, stocks, securities. Such companies are not involved in the business for industrial, agriculture, sale or purchase of products, construction services.
NBFC is a company which accepts deposits under the particular scheme or in installments and provides loans for other customers or business personnel who required loan. NBFC companies make investments to grow their investment fund so that they can provide maturity amount to depositors. NBFC cannot accept demand deposits.