The largest NBFCs in India by loan book as of 30 June 2026 are REC (₹5.90 lakh crore), Power Finance Corporation (₹5.70 lakh crore), Bajaj Finance (₹5.47 lakh crore) and Indian Railway Finance Corporation (₹4.79 lakh crore). The RBI's Upper Layer list for 2026-27, released on 6 August 2026, names 17 NBFCs, including Shriram Finance, Tata Capital and LIC Housing Finance.
Top 10 NBFCs in India at a Glance
The table lists the ten largest lending NBFCs in the RBI's Upper Layer list, ordered by the loan book or assets under management (AUM) each company reported for 30 June 2026. The companies do not all report the same measure, so the measure used is shown next to each figure. Tata Sons, a core investment company on the same RBI list, is left out because it is a holding company and not a lender.
| No. | NBFC | RBI Category | Measure Reported | Amount as of 30 June 2026 (₹ lakh crore) |
|---|---|---|---|---|
| 1 | REC Limited | Infrastructure Finance Company | Standalone loan book | 5.90 |
| 2 | Power Finance Corporation Limited | Infrastructure Finance Company | Standalone loan assets | 5.70 |
| 3 | Bajaj Finance Limited | Deposit-taking NBFC-ICC | Consolidated AUM | 5.47 |
| 4 | Indian Railway Finance Corporation Limited | Infrastructure Finance Company | AUM | 4.79 |
| 5 | LIC Housing Finance Limited | Deposit-taking HFC | Outstanding loan portfolio | 3.22 |
| 6 | Shriram Finance Limited | Deposit-taking NBFC-ICC | AUM | 3.14 |
| 7 | Tata Capital Limited | Non-deposit taking NBFC-ICC | AUM | 2.91 |
| 8 | Cholamandalam Investment and Finance Company Limited | Non-deposit taking NBFC-ICC | AUM | 2.54 |
| 9 | Aditya Birla Capital Limited | Non-deposit taking NBFC-ICC | NBFC and HFC lending portfolio | 2.19 |
| 10 | Muthoot Finance Limited | Non-deposit taking NBFC-ICC | Consolidated loan AUM | 1.92 |
The Bajaj Finance figure is consolidated and includes its subsidiary Bajaj Housing Finance. Three of the four largest entries are government-owned infrastructure lenders: REC and Power Finance Corporation lend to the power sector, and Indian Railway Finance Corporation funds the railways.
RBI's Upper Layer NBFC List
The Reserve Bank of India released the list of NBFCs in the Upper Layer (NBFC-UL) for 2026-27 on 6 August 2026, based on financials as on 31 March 2026. The list has 17 companies. The RBI did not issue a list for 2025-26 because it was reviewing the identification criteria that year; the previous list, for 2024-25, was released on 16 January 2025.
| S.No. | Company Name | NBFC Category |
|---|---|---|
| 1 | REC Limited | Infrastructure Finance Company |
| 2 | Power Finance Corporation Limited | Infrastructure Finance Company |
| 3 | Indian Railway Finance Corporation Limited | Infrastructure Finance Company |
| 4 | Bajaj Finance Limited | Deposit-taking NBFC-ICC |
| 5 | Shriram Finance Limited | Deposit-taking NBFC-ICC |
| 6 | LIC Housing Finance Limited | Deposit-taking HFC |
| 7 | Cholamandalam Investment and Finance Company Limited | Non-deposit taking NBFC-ICC |
| 8 | Tata Capital Limited | Non-deposit taking NBFC-ICC |
| 9 | Tata Sons Private Limited | Core Investment Company |
| 10 | Muthoot Finance Limited | Non-deposit taking NBFC-ICC |
| 11 | Aditya Birla Capital Limited | Non-deposit taking NBFC-ICC |
| 12 | Housing and Urban Development Corporation Limited | Infrastructure Finance Company |
| 13 | Mahindra & Mahindra Financial Services Limited | Deposit-taking NBFC-ICC |
| 14 | L&T Finance Limited | Non-deposit taking NBFC-ICC |
| 15 | Bajaj Housing Finance Limited | Non-deposit taking HFC |
| 16 | HDB Financial Services Limited | Non-deposit taking NBFC-ICC |
| 17 | Piramal Finance Limited | Non-deposit taking NBFC-ICC |
The RBI's release notes that the inclusion of Tata Sons is without prejudice to the outcome of its application for de-registration, which is under examination. Two more companies, PNB Housing Finance Limited (deposit-taking HFC) and Sammaan Capital Limited (non-deposit taking NBFC-ICC), did not meet the criteria this year but continue to be treated as NBFC-UL. Both were last identified in 2024-25, and a company stays in the Upper Layer for at least five years once it is identified.
Upper Layer NBFCs must maintain Common Equity Tier 1 capital of at least 9% of risk-weighted assets, and they are also subject to a leverage requirement. The RBI describes the regulation of this layer as being in line with the rules that apply to banks.
Types of NBFCs
An NBFC is a company whose financial assets are more than 50% of its total assets and whose income from financial assets is more than 50% of its gross income. It must be registered with the RBI under Section 45-IA of the RBI Act, 1934. The RBI then groups NBFCs by activity. The table below follows the categories in the RBI's FAQ on NBFCs, updated on 15 September 2026, and the layers set out in the Scale Based Regulation framework.
| Type of NBFC | Abbreviation | RBI Qualifying Criterion | Layer Under Scale Based Regulation |
|---|---|---|---|
| Investment and Credit Company | NBFC-ICC | Lending, asset finance and investment in securities | Base, Middle or Upper |
| Housing Finance Company | HFC | 60% of total assets in housing finance; 50% in housing finance for individuals | Middle or Upper |
| Infrastructure Finance Company | NBFC-IFC | 75% of total assets in infrastructure lending | Middle or Upper |
| Infrastructure Debt Fund | IDF-NBFC | Refinancing of completed infrastructure projects | Middle |
| Micro Finance Institution | NBFC-MFI | 60% of total assets in microfinance loans | By asset size |
| Factor | NBFC-Factor | 50% of assets and 50% of income from factoring | By asset size |
| Mortgage Guarantee Company | MGC | 90% of turnover or gross income from mortgage guarantees | By asset size |
| Core Investment Company | CIC | 90% of net assets in group companies | Middle or Upper |
| Standalone Primary Dealer | SPD | Primary dealer in government securities | Middle |
| Account Aggregator | NBFC-AA | Account aggregation services | Base |
| Peer to Peer Lending Platform | NBFC-P2P | Intermediary platform for peer-to-peer lending | Base |
| Non-Operative Financial Holding Company | NOFHC | Holds shares of a banking company and other financial services companies | Base |
Under Scale Based Regulation, the Base Layer holds non-deposit taking NBFCs with assets below ₹1,000 crore. The Middle Layer holds all deposit-taking NBFCs, whatever their size, and non-deposit taking NBFCs with assets of ₹1,000 crore and above. The Upper Layer holds the companies the RBI names each year. There is also a Top Layer in the framework. In the current Upper Layer list, Bajaj Finance, Shriram Finance and Tata Capital are examples of NBFC-ICCs, REC and Power Finance Corporation are Infrastructure Finance Companies, and Tata Sons is a Core Investment Company.
NBFC vs Bank: What Changes for a Borrower
The RBI's FAQ lists three main differences between banks and NBFCs: NBFCs cannot accept demand deposits, they are not part of the payment and settlement system and cannot issue cheques drawn on themselves, and their depositors do not get deposit insurance from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
| Point | Bank | NBFC |
|---|---|---|
| Demand deposits (savings and current accounts) | Allowed | Not allowed |
| Cheques drawn on itself | Yes | No |
| DICGC deposit insurance | Available | Not available |
| External benchmark for new floating-rate retail loans | Mandatory since 1 October 2019 | Not mandatory |
| Pre-payment charges on floating-rate non-business loans to individuals | Not permitted | Not permitted |
The difference that matters most for a floating-rate home loan is the benchmark. Since 1 October 2019, banks have had to link new floating-rate retail loans to an external benchmark such as the RBI repo rate. That rule covers banks only, so an NBFC or housing finance company can price its floating-rate loans against its own reference rate.
NBFCs that are allowed to take public deposits can accept them only for 12 to 60 months and cannot take deposits repayable on demand. They need a minimum investment grade credit rating of BBB–, cannot hold deposits of more than 1.5 times their net owned funds, and cannot pay more than the RBI's ceiling of 12.5% interest on deposits.
Housing Finance Companies Among the NBFCs
A housing finance company (HFC) is an NBFC with at least 60% of its total assets, net of intangible assets, in housing finance and at least 50% in housing finance for individuals. Housing finance here covers loans for the purchase, construction, reconstruction, renovation or repair of residential units.
Under Scale Based Regulation an HFC is never placed in the Base Layer. It sits in the Middle Layer, or in the Upper Layer if the RBI identifies it. Three HFCs are currently treated as Upper Layer entities.
| Housing Finance Company (HFC) | RBI Category | Upper Layer Status (2026-27) | AUM or Loan Portfolio as of 30 June 2026 (₹ crore) |
|---|---|---|---|
| LIC Housing Finance Limited | Deposit-taking HFC | In the 2026-27 list | 3,22,098 |
| Bajaj Housing Finance Limited | Non-deposit taking HFC | In the 2026-27 list | About 1,49,600 |
| PNB Housing Finance Limited | Deposit-taking HFC | Continuing; last identified 2024-25 | 93,021 |
Individual home loans made up ₹2,71,979 crore of the LIC Housing Finance portfolio on that date. Some large NBFCs also lend for housing through subsidiaries: Tata Capital Housing Finance reported AUM of ₹89,416 crore and Aditya Birla Housing Finance ₹51,833 crore as of 30 June 2026.
List Of Nbfc In India
The RBI publishes the full list of registered NBFCs on its website. The companies below are the remaining entities on the RBI's Upper Layer list, beyond the ten in the first table, for which a 30 June 2026 loan book or AUM figure is published.
| NBFC Entity | RBI Category | Measure Reported | Amount as of 30 June 2026 (₹ crore) |
|---|---|---|---|
| Housing and Urban Development Corporation Limited | Infrastructure Finance Company | Loan book | 1,73,123 |
| Bajaj Housing Finance Limited | Non-deposit taking HFC | AUM | About 1,49,600 |
| Mahindra & Mahindra Financial Services Limited | Deposit-taking NBFC-ICC | Business assets | About 1,37,300 |
| L&T Finance Limited | Non-deposit taking NBFC-ICC | Consolidated book | 1,29,634 |
| HDB Financial Services Limited | Non-deposit taking NBFC-ICC | AUM | 1,22,048 |
| PNB Housing Finance Limited | Deposit-taking HFC | AUM | 93,021 |
Piramal Finance and Sammaan Capital are also Upper Layer entities, and Tata Sons is on the list as a core investment company. Below the Upper Layer, any NBFC with a deposit-taking licence, and any non-deposit taking NBFC with assets of ₹1,000 crore or more, falls in the Middle Layer.
Key Takeaways
- The RBI's Upper Layer list for 2026-27, released on 6 August 2026, has 17 NBFCs; PNB Housing Finance and Sammaan Capital continue to be treated as Upper Layer entities in addition.
- By loan book as of 30 June 2026, REC (₹5.90 lakh crore), Power Finance Corporation (₹5.70 lakh crore) and Bajaj Finance (₹5.47 lakh crore consolidated AUM) are the three largest.
- Upper Layer NBFCs must hold Common Equity Tier 1 capital of at least 9% of risk-weighted assets.
- NBFCs cannot accept demand deposits, and their deposits are not covered by DICGC insurance.
Frequently Asked Questions (FAQs)
What is the difference between a bank and an NBFC for a home loan?
Banks must link new floating-rate retail loans, including home loans, to an external benchmark such as the RBI repo rate; this has applied since 1 October 2019. The rule does not cover NBFCs and housing finance companies, which can use their own reference rate. NBFCs also cannot offer savings or current accounts.
Do NBFCs charge prepayment penalties on floating rate home loans?
No. Under the RBI's Pre-payment Charges on Loans Directions, 2025, issued on 2 July 2025, banks and NBFCs cannot levy pre-payment charges on floating-rate loans given to individuals for non-business purposes. The directions apply to loans sanctioned or renewed on or after 1 January 2026, whether the loan is repaid in part or in full.
Is taking a home loan from an NBFC safe for borrowers?
NBFCs and housing finance companies must be registered with and are regulated by the RBI; registration is required under Section 45-IA of the RBI Act, 1934. Complaints against NBFCs that take deposits, or that have a customer interface and assets of ₹100 crore or more, can be taken to the Reserve Bank - Integrated Ombudsman Scheme, 2021.
Can a borrower transfer a home loan from an NBFC to a bank?
Yes. For a floating-rate home loan taken by an individual and sanctioned or renewed on or after 1 January 2026, the NBFC cannot levy a pre-payment charge when the loan is closed, and the RBI's directions apply whatever the source of the funds used to repay it.
