Finance companies are the organizations involved in financing any consumer or business. They specialize in supplying credits to purchase goods in credits. They grant loans or lend money to the people for different projects or ventures. A financial services company can be described as the one that offers loans to individuals, institutions, and businesses.
The financial structure of any nation has a great impact on the economy with financial services companies playing a major role in robust economic growth. There has to a direct connection between the intermediary institutions and the regular institutions while measuring the financial system of a company.
The basic difference of a finance company and a bank is that the bank accepts deposits from publishing but it does not accept deposits from the public. The common feature between a financial company and a bank is that it acts as a lending entity by extending credit, where it may or may not draw funding from banks or resources like a money market.
This kind of company may hold specialization in dealing with finance with a wide assortment of installment plan sales. It extends credits for multiple purposes like commercial uses, consumer purchase for financing houses and production projects and more.
The importance of finance companies in the nation is huge. The Indian finance industry comprises numerous players who help in boosting the economic growth of India by offering financial assistance to various projects. Several finance companies are operating in India and offering incredible financial services depending on the needs of the consumers.
Here is the list of top 10 financial services companies in India; they are a pillar of the nation offering excellent financial services.
Bajaj Finance Ltd is engaged in lending and allied activities. The major focus of the company is on consumer lending, small and medium-sized enterprises lending, commercial lending, fixed deposits, rural lending, and value-added services.
The bank offers retail fixed deposits and wholesale fixed deposits. It is highly engaged in general insurance, life insurance and mutual fund distribution. Its headquarter is in Pune. The popular product by Bajaj is No Cost EMI facility to customers. With the approval of the Reserve Bank of India, the corporation has also ventured in the credit card business.
Established in the year 2015, IDFE First Bank is among the top financial services companies in India. It was formerly known as IDFC Bank Limited, is a banking company headquartered in Mumbai.
The major segments of the bank include corporate/wholesale banking, treasury, retail banking and unallocated. It is operating across about 65 branches, more than 10 automated teller machines and extended throughout the country. It offers a savings account, recurring deposit, fixed deposit, home loans, debit card, payments and online services to name a few.
Another popular in the list of top 10 financial services companies in India, Muthoot Finance Ltd was established in 1939. Headquartered in Kochi, the company offers loan against the collateral of goal jewellery.
Muthoot Finance generally operates two segments- Financing and Power Generation. It offers personal and business loans primarily to individuals having no access to formal credit for a reasonable tenure to meet their short-term working capital needs.
It is also offering gold loans, foreign inward money transfer services, insurance broking, home loans, personal loans, foreign exchange services, home loans, collection services, windmill power generation, domestic money transfer services, instant money transfer services, etc.
Founded in the year 1991, Mahindra & Mahindra Financial Services Ltd is headquartered in Mumbai, India. The company serves the financing needs of the population residing in rural and semi-urban areas of the nation.
It offers a range of retail products and services like financing vehicles for commercial and personal use, small and medium enterprise (SME), tractors, loans and various other financial products. It also offers mutual fund distribution, fixed deposits schemes, and personal loans. Mahindra Insurance Brokers Limited is the subsidiary of Mahindra & Mahindra; it is evolved in distributing life and non-life insurance products through tie-ups with multiple insurance companies.
Started as the captive financier of Mahindra utility vehicles in the early 90s, today Mahindra & Mahindra is a renowned brand name. It was established in the year 1991 and working across over 1000 branches, and a customer base of more than 3 million.
The company has created an excellent market reputation and name by serving in more than 3, 60,000 villages. Because of its great work and reputation, Mahindra Finance has been recognized as Aon Best Employer 2012 and Best BFSI Brands 2018 by The Economic Times.
Mahindra & Mahindra is one of the top financial services companies and it has two affiliates offering Insurance services and rural housing financial services.
India's largest private sector HDFC Bank, HDB Finance Services offers a wide variety of secured and unsecured financial loans. Presently, it is operating through a network of over 1,000 branches in 22 Indian states and 3 Union Territories.
The finance corporation offers secured and unsecured loans, including personal and business loans, auto loans, doctor's loans, gold loans, enterprise business loans, construction equipment loans, tractor loans, and new users car loans, consumer durables loans, etc.
It is operating through Lending Business BPO Services segments and is considered among the top 10 financial services companies in India.
One of the top 10 financial services companies in India, Tata Capital was established in the year 2007 as an arm of Tata Sons Ltd. This is a non-stop provider of numerous financial services that fulfil the requirements of retail, institutional as well as corporate customers of the country.
It is specialized in providing wealth management, home loans, infrastructure management, consumer loans, and commercial finance. The company also covers the distribution and the marketing of Tata cards.
Cholamandalam Investment was started as the equipment finance in the year 1978 as the arm of the Murugappa Group. Today it provides comprehensive financial services to a different range of customers. It is providing vehicle finance, home equity loans, SME loans, and stockbroking and is operating from more than 900 branches across the nation.
An Indian multinational conglomerate Larsen & Turbo is headquartered in Mumbai. It is a leading finance company that shares the business interest in the field of Information Technology, financial services, construction, manufacturing goods and many more.
The company also offers power, electrical equipment, shipbuilding, and heavy equipment. It is dealing with construction, financial services, and IT services. The major subsidiaries of the L & T Finance Holdings are L & T InfoTech, L & T Finance holdings, L & T infrastructure finance company, L & T Technology services, etc.
The part of Aditya Birla Financial Services, Aditya Birla Finance Limited was incorporated in 1991. This is an ISO 9001:2008 certified NBFC. Aditya Birla is registered with RBI as a systemically important non-deposit accepting NBFC'. It ranks among the top 10 financial service companies in India.
It offers precise and customized solutions across a range, from commercial mortgage to corporate finance; and from structured finance to capital markets.
The above-mentioned top 10 financial services companies offer all types of financial services to the customers. The list includes both banking and non-banking financial companies. While banking financial companies operate fully, non-banking financial companies work just like a bank. But there are limitations like availing credit and debit cards; or opening a deposit account may not be possible with several NBFCs.