What is an NBFC?
A non-banking financial company registered with the RBI that can lend money without being a bank.
New to lending? Explore the business with a clear roadmap.
You have the funds and the business sense, but lending is new to you. Monevia explains how the industry works, the business models you could follow and exactly what it takes to get started.
For business owners & entrepreneurs
Start with understanding.
- Lending industry basics
- Possible business models
- Requirements to get started
- Support from planning to launch
Lending basics
The lending industry in plain language.
What is an LSP?
A lending service provider that sources, onboards or services borrowers on behalf of a regulated lender.
How a loan works
Application, verification, eligibility check, disbursement, then repayment until the loan is closed.
How lenders earn
Mainly from the interest margin over their cost of funds, minus losses and operating costs.
Business models
Ways to enter the lending industry.
Start your own NBFC
The most involved route: RBI registration, your own capital, board and policies, with full control of the lending business.
Become a lending service provider
Work with regulated lenders to source and service borrowers, without lending from your own balance sheet.
Partner with established players
Join forces with existing lenders and fintechs through permitted partnership arrangements.
What it takes
Requirements to plan for before you start.
Lending is a regulated business. An NBFC needs RBI registration, minimum capital and a board that approves the policies it operates under. These are some of the policies a digital lending NBFC is expected to have in place.
Exact requirements depend on your business model and current RBI regulations.
Credit Policy, including a digital lending chapter
KYC / AML Policy
Fair Practices Code
Grievance Redressal Policy
Interest Rate and Penal Charges Policies
Recovery Policy and code of conduct for recovery agents
Privacy and Data Storage Policies
IT / Information Security Policy and Business Continuity Plan
Outsourcing Policy
How Monevia supports you
Your path into the lending industry.
- 1
Understand
Learn how lending works and which business model suits your goals and funds.
- 2
Plan
Map out capital, registrations, policies, team and technology.
- 3
Set up
Put operations and lending technology in place, ready for your first loans.
- 4
Launch
Start lending with origination and management systems from day one.
- 5
Grow
Monitor your portfolio and scale with the support of the Monevia network.
FAQs
Frequently asked questions
Can I enter the lending business without any experience?
Yes, many lending businesses are started by people from other industries. What matters is understanding the business model, the regulations and the risks, and having the right team, processes and technology in place.
How much capital do I need?
It depends on the business model. Running an NBFC requires minimum net owned funds as set by the RBI, while other models need less. We help you understand the requirements for the route you choose.
What are the risks?
Lending businesses face credit risk, borrower defaults, liquidity risk, operational challenges and regulatory changes. You should understand these before committing funds.
Does Monevia help with policies and compliance?
We help you understand which policies and processes a lending business needs, and our technology is configured around them. Formal legal and regulatory advice should come from qualified professionals.
Ready to explore the lending industry?
Talk to our team about your goals, and we will help you understand the opportunities and what it takes to get started.