1. Can a foreign entity or NRI start a finance company in India?\u00a0<\/strong><\/p>\n\n\n\nYes, 100% FDI is generally allowed under the automatic route, provided you comply with FEMA regulations and the RBI\u2019s strict “Fit and Proper” checks for international promoters.<\/p>\n\n\n\n
2. What is the difference between a Fintech startup and a licensed NBFC?\u00a0<\/strong><\/p>\n\n\n\nA Fintech is a technology platform that facilitates loans, while an NBFC is the regulated legal entity that holds the license to actually lend money from its own balance sheet.<\/p>\n\n\n\n
3. Is it possible to buy an existing NBFC license instead of applying for a new one? <\/strong><\/p>\n\n\n\nYes, you can acquire an existing NBFC through a “takeover,” though this requires prior RBI approval if more than 26% of the shareholding or 30% of the management changes.<\/p>\n\n\n\n
4. Can my finance company accept loan repayments in cash?\u00a0<\/strong><\/p>\n\n\n\nWhile small cash payments are allowed, Income Tax laws cap single-day receipts at \u20b92 lakh, and the 2026 digital lending rules mandate direct bank-to-bank transfers for most transactions.<\/p>\n\n\n\n
5. What happens if my capital falls below the \u20b910 crore NOF requirement?\u00a0<\/strong><\/p>\n\n\n\nMaintaining the minimum NOF is a continuous mandate; if losses erode your capital, you must immediately inject funds or risk the RBI canceling your Certificate of Registration.<\/p>\n","protected":false},"excerpt":{"rendered":"
Starting a finance company can be a fruitful venture in the current state of affairs. Why? Well, the answer is straightforward. The demand for credit in India across diverse industries and societies is hitting new benchmarks. People and businesses are consistently looking for loans to fuel their financial goals. Although traditional banks can cater to […]<\/p>\n","protected":false},"author":8,"featured_media":7348,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[528],"tags":[1137,1136,1077],"class_list":["post-7338","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nbfc","tag-how-to-start-a-finance-business","tag-how-to-start-a-finance-company","tag-nbfc-registration"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/posts\/7338","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/comments?post=7338"}],"version-history":[{"count":8,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/posts\/7338\/revisions"}],"predecessor-version":[{"id":7346,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/posts\/7338\/revisions\/7346"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/media\/7348"}],"wp:attachment":[{"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/media?parent=7338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/categories?post=7338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/tags?post=7338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}