LR NBFC Classification
                     CLASSIFICATION OF NBCS
ON THE BASIS OF THEIR ACTIVITIES
THE PRIMARY 
ASSET BUSINESS OF THESE COMPANIES IS TO 
FINANCE FINANCE THE ASSETS OF A FIRM, SUCH AS 
MACHINES, 
COMPANY AUTOMOBILES, 
GENERATORS, 
(AFC) MATERIAL EQUIPMENT, INDUSTRIAL MACHINES 
ETC. 
INVESTMEN THIS COMPANY 
T COMPANY DEALS PRIMARILY IN 
(IC) SECURITIES. 
AS THE NAME SUGGESTS, 
LOAN THE MAIN BUSINESS IS TO DEAL IN LOANS AND 
ADVANCES. THESE LOANS 
COMPANIE ARE NOT FOR ASSETS, BUT FOR OTHER 
S (LC) PURPOSES SUCH AS WORKING CAPITAL 
FINANCE ETC. 
ANY COMPANY THAT 
OWNS AT LEAST RS.300 
CRORE AND HAS 
DEPLOYED 75% OF ITS 
 INFRASTRUCTURE TOTAL ASSETS IN INFRASTRUCTURE 
FINANCE LOANS IS CALLED AN 
COMPANY (IFC) IFC. THE ONLY CONDITION IS THAT IT 
SHOULD HAVE CREDIT 
RATING OF A OR ABOVE 
AND HAS CRAR OF 
15%.
SYSTEMATICALLY IF A COMPANY HAS ASSETS WORTH RS.100 CRORE OR MORE 
IMPORTANT AND HAS DEPLOYED 90% OF ITS 
ASSETS IN DEBT INSTRUMENTS 
CORE OR LOANS IN GROUP COMPANIES, 
INVESTMENT THEN IT COMES UNDER CIS-ND-SI. 90% OF THE AMOUNT 
COMPANY (CIS- INVESTED, SHOULD BE IN EQUITY SHARES OR CAN BE 
ND-SI) COMPULSORILY CONVERTED 
INTO EQUITY SHARES. 
THE MAIN INVESTMENT OF THIS 
COMPANY IS IN THE 
INFRASTRUCTURE SECTOR. 
INFRASTRUCTU THESE FUNDS ARE IMPORTANT 
FOR THE COUNTRY, AS THESE 
RE DEBT FUND FUNDS ARE DIFFICULT IN 
COMPARISON TO OTHER TYPES 
(IDF-NBFC) OF FUNDS. THIS IS BECAUSE OF 
ITS HUGE REQUIREMENT, LONG 
GESTATION PERIOD AND LONG 
TERM REQUIREMENTS.
NON- MICRO FINANCE 
BANKING INSTITUTION (NBFC-MFI): IT IS A NON-DEPOSIT TAKING 
NBFC, WHICH HAVE AT 
FINANCIAL LEAST 85% OF ITS ASSETS 
IN THE FORM OF 
COMPANY MICROFINANCE.