For many Indian businesses, especially MSMEs and fast-growing startups, NBFCs (Non-Banking Financial Companies) have become a powerful alternative to traditional banks. Where banks often prioritise long operating history, collateral, and rigid structures, NBFCs step in with speed, flexibility, sector understanding, and customised products. This makes them particularly relevant when businesses need quick funding, higher risk appetite, or tailored working-capital solutions.
That said, not all NBFCs are the same. Each has a distinct lending philosophy, sector focus, ticket size comfort, and cost structure. Choosing the right NBFC can materially improve cash flow and growth outcomes, while a poor choice can quietly increase borrowing costs and stress. This article explains the best 10 NBFCs for business loans in India, what they are best known for, and how founders should think about selecting among them.
Why NBFCs Matter in Business Lending
NBFCs play a crucial role in India’s credit ecosystem by filling gaps left by banks. They often lend to businesses that are GST-compliant but asset-light, operate in niche sectors, or are scaling faster than traditional underwriting models allow. Many NBFCs leverage alternative data, technology, and on-ground intelligence to assess creditworthiness, enabling faster approvals and flexible structures.
For founders, the real value of NBFCs lies in time and adaptability. While interest rates may be higher than public sector banks, the ability to access capital quickly and with fewer constraints can outweigh the cost—especially when funding supports growth or resolves short-term liquidity mismatches.
Bajaj Finserv
Bajaj Finserv is one of the most recognisable names in India’s NBFC space and a dominant player in MSME lending. It is particularly strong in unsecured and semi-secured business loans, offering fast disbursals and simplified processes. Businesses with clean bank statements and consistent cash flows often find Bajaj Finserv to be a reliable option for quick funding. Its digital onboarding and wide geographic reach make it attractive for growing enterprises, though founders should evaluate overall cost carefully for longer tenures.
Tata Capital
Tata Capital combines the credibility of the Tata brand with a diversified lending portfolio. It serves MSMEs, corporates, and startups across sectors such as manufacturing, services, healthcare, and education. Tata Capital is known for structured business loans, equipment finance, and working capital solutions. It suits businesses looking for a balance between professionalism, flexibility, and relationship-driven lending, particularly where larger ticket sizes are involved.
L&T Finance
L&T Finance has a strong presence in infrastructure-linked businesses, manufacturing, and traditional MSME segments. It is especially relevant for asset-backed loans, machinery finance, and longer-tenure funding. Businesses with tangible assets and predictable cash flows often benefit from L&T Finance’s structured approach and sector expertise. While processes may be more detailed, the stability and scale of funding are major advantages.
Aditya Birla Finance
Aditya Birla Finance caters to a wide spectrum of borrowers, from mid-market companies to MSMEs. It is known for customised solutions, including working capital, term loans, and structured credit. The NBFC often appeals to businesses seeking slightly larger ticket sizes with a professional, corporate-style engagement. Its strength lies in combining group credibility with a relatively flexible underwriting approach.
Axis Finance
Axis Finance, the NBFC arm of Axis Group, focuses on business loans, promoter financing, and structured credit. It is particularly relevant for businesses that may not fit standard bank templates but still demonstrate strong cash-flow potential. Axis Finance is often chosen by founders who value quick execution with a degree of institutional discipline similar to banks.
UGRO Capital
UGRO Capital has positioned itself as a data-driven NBFC focused on underserved MSME segments. It specialises in sector-specific lending such as healthcare, education, chemicals, and food processing. Businesses operating in these niches often find UGRO Capital more understanding of industry cycles and risks. Its use of analytics allows faster decisions while maintaining structured credit evaluation.
Lendingkart
Lendingkart is a fintech-led NBFC known for speed and minimal documentation. It primarily serves small businesses and traders looking for quick, short-tenure loans. Lendingkart is best suited for urgent working-capital needs or tactical funding gaps. However, founders should be mindful that convenience and speed often come with higher interest rates and tighter repayment schedules.
Indifi
Indifi focuses on MSMEs and small enterprises, particularly in sectors like retail, travel, hospitality, and e-commerce. It often partners with platforms and ecosystems to offer contextual credit. Indifi works well for businesses with digital footprints and platform-based revenues, offering relatively quick disbursals aligned with business cycles.
NeoGrowth
NeoGrowth is well known for revenue-based financing, where repayments are linked to daily or monthly sales. This model suits retail, restaurant, and service businesses with card or digital payment collections. NeoGrowth’s approach reduces pressure during slow periods but can feel expensive during strong sales cycles, making it suitable for specific business models rather than universal use.
Aye Finance
Aye Finance focuses on micro and small enterprises that are often overlooked by mainstream lenders. It relies heavily on cash-flow assessment and on-ground understanding rather than formal financial statements alone. Aye Finance is particularly relevant for very small businesses transitioning into formal credit systems, though ticket sizes are typically modest.
How Founders Should Choose the Right NBFC
The best NBFC is not the one that approves the fastest or advertises the lowest rate, but the one that aligns with your business model, cash-flow pattern, and funding purpose. Short-term gaps require different solutions than growth funding. Asset-light businesses need different lenders than asset-heavy manufacturers.
Founders should evaluate total cost of borrowing, repayment flexibility, and impact on cash flow—not just approval speed. Maintaining transparency and disciplined account conduct also improves negotiating power over time, even with NBFCs.
NBFCs vs Banks: A Strategic Perspective
NBFCs should not be seen as replacements for banks but as complements. Many successful businesses use a mix of bank funding for long-term, low-cost needs and NBFC funding for speed, flexibility, or specialised use cases. When used strategically, NBFCs can accelerate growth without compromising financial stability.
Final Thoughts
India’s NBFC ecosystem has matured significantly, offering founders more choice than ever before. From large institutional players to agile fintech lenders, the options span every business stage and sector. The real advantage lies in choosing wisely and borrowing intentionally.
A well-selected NBFC can be a growth partner rather than just a lender—providing capital when timing matters most.