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Starting your own business can be a challenging task, and it can be even more daunting when it comes to the financial sector, particularly if you're planning to start a lending/NBFC business in India. This is because you require a NOF (Net Owned Funds) of 10 Crore, and it's essential to follow the guidelines set by the regulatory authority of NBFCs, i.e., the Reserve Bank of India (RBI). However, if you're passionate and determined to start your own NBFC, there are a few things to keep in mind to get started.
Firstly, it's crucial to check RBI's guidelines before starting a lending/NBFC business in India. The regulatory authority regularly updates different guidelines for various types of NBFCs. Therefore, it's essential to stay up to date with the latest guidelines to ensure that your business complies with all the rules and regulations.
India is a vast country, and not everyone's banking needs are met. Therefore, if you notice people or businesses struggling to get loans or financial services, especially in smaller towns or for specific needs like small businesses, you might have found your opportunity. This is the right time to start an Lending/NBFC Business as you can cater to the needs of customers that are not being met by other financial institutions.
Furthermore, it's generally seen that when India's economy is doing well, businesses and people look for loans and services to grow. Therefore, starting during these times might work in your favor. Additionally, India loves its tech. Incorporating technology into your business can give you an edge over other traditional financial institutions. If you have a tech-savvy idea that makes banking easy, fast, or online, you're likely onto something good.
Although starting an Lending/NBFC Business typically requires a NOF of 10 Crore, you can collaborate with an existing NBFC to start with less NOF. It's also important to be ready before starting your NBFC business. This means knowing the rules, having a plan, and setting up a good team. It's always good to have a chat with experts who have experience in the BFSI to ensure you're on the right track and help you start your NBFC business.
Starting a Lending/NBFC Business in India can be a challenging task, but with the right mindset and preparation, it can be a rewarding experience. By keeping yourself updated with the latest guidelines, catering to the unmet needs of customers, incorporating technology, and having access to funds, you can start your own NBFC business.