NON-BANKING FINANCIAL companies (NBFCs) are a major source of credit alongside banks. The tilt of India’s population towards youth—and their aspirations and desires—has made them access credit for a variety of requirements such as purchasing cars, white goods, housing, education, and the like.
From the standpoint of an NBFC, there are risks in terms of processes and lending due to which there have been several failures (IL&FS is one example) in the past decade or so. The increasing size of NBFCs can also pose a significant challenge such as a credit contagion
