Is it necessary that every NBFC have a minimum Net Owned Fund?

Is it necessary that every NBFC have a minimum Net Owned Fund?

Yes every NBFC should have minimum Net Owned Fund. A portion of this fund (Say ₹ 2 Crore for Asset Finance Company) is in the form of Fixed Deposit as well.

If you want to start an NBFC this Video can be helpful:

An NBFC is primarily a player that earns by borrowing money and lending the same out at a higher level—the “spread” so to say.

However, as every business does, it requires the nuts and bolts to do the business - a factory promoter needs land and machinery, so to an NBFC requires money….the net owned funds as it is known.


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