Introduction:

Non-Banking Financial Companies provide loans, investments and more without operating like traditional banks. NBFCs have become the source of speed and innovation. They will become more focused on digital banking and small business lending as the Indian economy booms in 2026. In this article, we listed the top 10 NBFCs that are best in terms of their market presence, reliability, and customer reach. 

Let’s take a look at the top 10 NBFCs.

Bajaj Finance Limited

Bajaj Finance is the market leader in consumer lending and finance. It offers personal loans, home loans, and credit for buying gadgets or vehicles. The company is known for quick loan approvals and user-friendly apps, making borrowing simple. In 2026, the company might use AI-driven technology for personalised loans, suggesting options based on users’ spending habits. Bajaj Finance’s strength lies in its customer base, vast network, and low default rates due to smart risk checks. Bajaj is an ideal choice because it combines speed with security, helping families fund big purchases without hassle.

Jio Financial Services Limited

Jio Financial Services is the financial arm of Reliance, revolutionising finance with technology. The firm provides digital loans, insurance, and investment plans through mobile apps. What sets it apart is its integration with Jio’s telecom network, offering seamless services to millions. Jio is expected to lead in blockchain-based secure transactions. 

This makes money transfer much faster and cheaper. Young professionals and small business owners prefer the company’s commitment to affordability. Jio is great for tech-enabled customers who like to have everything in one app and appreciate low fees, along with instant approvals.

Power Finance Corporation

Power Finance Corporation is a government-backed giant that focuses exclusively on the power or energy sector. They lend money needed to power projects like solar farms, transmission lines, and grid upgrades. PFC becomes a reliable NBFC due to its strong regulations and national support. In 2026, as India pushes for green energy, PFC is likely to become the biggest financier of India’s renewable energy transition and support more renewable initiatives. Power Finance Corporation’s low-risk profile and steady returns appeal to those seeking long-term growth in essential services.

REC Limited

REC (Rural Electrification Corporation) Limited is another public sector NBFC, specialising in rural electrification and infrastructure loans. It supports projects that heavily focus on ensuring electricity reaches every village and home in India. REC excels in sustainable financing, like loans for wind energy and smart villages. 

The company’s strength lies in its extremely low bad loans, as it lends mostly to state governments and electricity boards. REC might introduce eco-friendly loan schemes with incentives for green tech adopters in future. Its government ties ensure trustworthiness, making it an ideal choice for businesses in energy and development. REC’s emphasis on inclusivity helps bridge urban-rural gaps.

Shriram Finance Limited

Shriram Finance was founded by merging Shriram Transport and Shriram City Union. This NBFC company targets commercial vehicles and small businesses. It is one of the largest retail NBFCs in India. It offers loans for trucks, tractors, and working capital. Shriram understands the rural and semi-urban market that big banks struggle to penetrate. It strengthens its position by providing branches in hard-to-access locations. 

Shriram Finance is the go-to choice of many truck drivers and small fleet owners. They have the potential to pioneer in electric vehicle financing for transporters, with the wave of sustainability. Their flexible repayment options and personal touch build loyalty among entrepreneurs. As the Indian economy grows, logistics needs are set to increase, and this favours Shriram Finance relatively better among its other listed NBFCs.

Cholamandalam Investment and Finance Co. Ltd

The NBFC is part of the well-known Murugappa Group. They started with vehicle finance and expanded into loans from vehicles to homes. It serves both urban and rural customers with efficient services. Cholamandalam‘s standout point is its quick processing and strong customer support. 

The company is entering three new business segments: Consumer & Small Enterprise Loans (CSEL), Secured Business & Personal Loans (SBPL), and SME loans. These new areas will contribute to their profits, reducing their reliance on vehicle loans. Their trust and agility help them quickly adapt to market changes.

Muthoot Finance Limited

Muthoot Finance is almost synonymous with gold loans in the country. The NBFC firm started in Kerala and quickly grew nationwide, offering instant cash against gold jewellery. They help people unlock the full value potential of their gold via instant loans. Gold loans are one of the safest lending businesses as they are backed by physical gold. 

If the borrower failed to return the money, the company can sell gold to recover the money. Muthoot’s process is straightforward: walk in, get evaluated, and secure funds. The brand has the trust of all its customers, Muthoot keep the jewellery safe. Muthoot Finance is an ideal NBFC for emergencies. They help people leverage assets without selling them, providing quick relief during tough times.

LIC Housing Finance Limited

The company is a part of the insurance giant LIC, making it one of the largest finance companies in India. It focuses on affordable housing finance. LIC Housing Finance is a subsidiary of a major insurer and offers home loans with competitive rates. Their tie-up with insurance adds value, like brand trust and bundled policies for borrowers. 

The company offers long-term lending to those building or purchasing a home. Their brand is targeted towards first-time buyers seeking low-interest and long-term options. LIC’s emphasis on customer education and detailed information about the lending process ensures informed choices. With the government’s push for affordable housing, LIC Housing Finance is perfectly positioned to lead the housing finance sector in 2026.

HDB Financial Services Limited

HDB Financial Services is a subsidiary of a top bank in India, HDFC Bank. They provide personal, gold, and business loans. It has a wide branch network and digital platforms. Unlike traditional banks, it serves customers that the bank might find too risky or too small to provide loans or serve directly. HDB stand out for customised solutions, like loans tailored to income patterns. The NBFC firms might introduce biometric verifications for faster approvals. The firm is focused on growing its lending business that extends into asset, enterprise and consumer finance.

Mahindra & Mahindra Financial Services Limited

This non-banking finance company is a rural powerhouse, catering to rural and agricultural finance. It finances tractors, farm machinery and small businesses. What sets Mahindra apart is its huge user base and its huge network in rural India. The company has branches throughout India, in places where other banks have struggled to operate. It gives Mahindra an edge and makes it perfect for those who want to increase incomes with modernisation while promoting inclusive growth.

Conclusion:

Non-Banking Financial Companies are distinct from regular banks. Banks accept public deposits, offer savings accounts, and can issue checks or demand drafts, while NBFCs focus only on lending, leasing, or investments. They contribute to the financial inclusion of India, providing strength to individuals and companies. The article mentioned 10 NBFCs that are poised to lead the 2026 financial industry by embracing technology and customer-centric approaches. 

FAQs:

What is an NBFC?

A Non-Banking Financial Company provides loans and financial services, but does not work exactly like a bank.

How are NBFCs different from banks?

NBFCs cannot accept savings accounts or issue cheques, but they offer flexible loans and faster services.

Are NBFCs safe to invest in?

Most NBFCs regulated by RBI are safe, but it’s important to check their ratings and financial health.

Why are NBFCs important in India?

NBFCs help people and small businesses get loans when banks may not easily approve them.

Can NBFCs give personal and business loans?

Yes, NBFCs offer personal loans, business loans, vehicle loans, and more.

Who regulates NBFCs in India?

The Reserve Bank of India (RBI) regulates and monitors NBFCs.

Do NBFCs charge higher interest than banks?

In many cases, yes, because they take higher risks and provide quicker approvals.

Can salaried and self-employed people apply for NBFC loans?

Yes, both salaried and self-employed individuals can apply if they meet the eligibility criteria.

Are NBFCs available in rural and small towns?

Yes, many NBFCs focus on rural and semi-urban areas where banking services are limited.

Will NBFCs grow more in the coming years?

Yes, with rising demand for credit, NBFCs are expected to grow strongly by 2026.