Starting a Non-Banking Financial Company (NBFC) in India is a great business opportunity, especially with the rise of digital lending and fintech. But the most important decision before launching your NBFC is choosing the right business model.

There are many NBFC models in India—each one with its own risks, rewards, and regulatory requirements. The right model can help your business grow faster, manage risks better, and stay compliant with the Reserve Bank of India (RBI).

In this blog, we at Corpbiz will explore the best business model options for an NBFC startup, and how to register and operate under them. We’ll also cover various online NBFC registration options and licenses you may need, such as the NBFC account aggregator license, PPI license, and P2P lending license.

Understanding NBFCs: A Quick Recap

An NBFC is a financial company that offers banking services like lending, investment, and asset management—without having a full banking license.

NBFCs play a huge role in supporting:

• Small and medium businesses (MSMEs)
  
  

• Unbanked or underbanked populations
  
  

• The digital lending ecosystem
  
  

NBFCs are regulated by the RBI under the RBI Act, 1934. Every NBFC must obtain an RBI license before starting operations.

What Are the Different Business Models for NBFC Startups?

Here are the top NBFC business models that are trending and profitable in 2024-25:

1. Loan Company Model (NBFC-Lending)

This is one of the most popular models.

What it does: Offers personal loans, MSME loans, vehicle loans, education loans, etc.

Why it's good:

• High demand in Tier 2 and Tier 3 cities
  
  

• Easy to scale using digital platforms
  
  

Challenges:

• Requires strong underwriting systems
  
  

• Risk of defaults
  
  

You can apply for online NBFC registration with RBI under this model.

2. NBFC-P2P (Peer-to-Peer Lending)

P2P lending is a tech-based model that connects lenders directly with borrowers.

What it does: Offers an online marketplace for loans

Why it's good:

• No need for large capital
  
  

• Very low operational cost
  
  

• Highly scalable
  
  

Challenges:

• Needs a P2P lending license online from RBI
  
  

• Must follow strict KYC and credit assessment norms
  
  

Startups with a fintech background find this model attractive because of its lean structure.

3. NBFC Account Aggregator Model

This is a fairly new model introduced by the RBI to promote data-based financial services.

What it does: Allows customers to safely share their financial data with banks, NBFCs, and fintech companies.

Why it's good:

• Ideal for tech-based NBFCs
  
  

• Opens new revenue streams through data monetization
  
  

• Low credit risk
  
  

Challenges:

• Requires NBFC account aggregator license online
  
  

• Heavy compliance with RBI's data privacy and consent norms
  
  

This model is best for startups that want to focus on financial infrastructure rather than lending.

4. NBFC with PPI License (Prepaid Payment Instruments)

This model enables NBFCs to offer wallet-based payment systems.

What it does: Issues wallets or prepaid cards used for digital payments.

Why it's good:

• Popular among youth and gig workers
  
  

• Helps build customer base for future lending
  
  

Challenges:

• Requires a PPI license apply online from RBI
  
  

• Payment security is a concern
  
  

This is ideal for NBFCs looking to enter the fintech and payment space.

Choosing the Right Business Model: Key Considerations

When selecting a business model for your NBFC, keep the following points in mind:

1. Target Market – Are you focusing on MSMEs, salaried professionals, or gig workers?
   
   

2. Capital Requirement – Lending models require more funds than aggregator models.
   
   

3. Tech Capability – Some models, like P2P and Aggregator, need strong digital infrastructure.
   
   

4. Compliance Requirements – Each license (PPI, P2P, Aggregator) has its own set of RBI norms.
   
   

5. Risk Appetite – Lending models carry credit risk; aggregator models don’t.
   
   

Online NBFC Registration with RBI: How to Start?

To start an NBFC, you must:

1. Set up a company under the Companies Act, 2013
   
   

2. Maintain minimum capital of ₹2 crore (₹10 crore for some NBFC types)
   
   

3. Apply online for NBFC registration on the RBI portal
   
   

4. Submit required documents like business plan, KYC, MoA/AoA, etc.
   
   

5. Wait for approval and RBI license
   
   

Corpbiz can help you apply for NBFC registration online smoothly and hassle-free.

Additional Licenses for NBFCs

Depending on your model, you may need one or more of the following:

• ✅ NBFC Account Aggregator License Online
  
  

• ✅ PPI License Apply Online
  
  

• ✅ P2P Lending License Online
  
  

Our experts at Corpbiz assist startups in securing all these licenses from RBI and other regulators.

FAQs on NBFC Startup Business Models

Q1. Can a new NBFC apply for more than one license?
Yes, an NBFC can apply for multiple licenses such as lending + aggregator + PPI, depending on its business scope.

Q2. Which NBFC model is most profitable in 2024?
P2P Lending and Loan Financing remain the most profitable due to high demand and low setup costs.

Q3. What is the easiest NBFC model for a fintech startup?
The Account Aggregator model is easiest for startups with strong tech infrastructure and limited capital.

Q4. How long does it take to get NBFC registration?
It may take 4 to 6 months depending on RBI approvals and document verification.

Q5. Do I need RBI approval for PPI license?
Yes. All Prepaid Payment Instruments (PPI) require prior approval from RBI.

Conclusion

Choosing the right NBFC business model is critical for your startup's success. Whether you want to offer loans, payments, or data aggregation—there’s a model that suits your vision.

Make sure you understand the capital, technology, and compliance needs of each model. For expert help, consult Corpbiz—we make the entire process of NBFC registration, license application, and business setup easy and affordable.

Need Help Setting Up Your NBFC?

Let Corpbiz handle everything from NBFC registration to getting your P2P, PPI, or Aggregator License—all online and hassle-free. Book your free consultation today! 🚀
 

Author: Atul Shukla

Atul Shukla is a seasoned business consultant at Corpbiz with over 10 years of experience in NBFC registration, fintech licensing, and RBI compliance. He specializes in helping startups grow through smart legal and financial structuring.

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