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What we will do
Evaluating funding needs, liabilities & credit health
Compiling director details, KYC, CIBIL & financial documents
Identifying lenders & pitching proposals
Structuring loan terms & repayment schedules
Due diligence by lenders, compliance & documentation by NBFC
After disbursement, DrNBFC supervises tracking & reporting
Non-Banking Financial Companies (NBFCs) play a vital role in India's evolving financial ecosystem. Serving as an enabler, NBFCs have proven to bridge the credit gap underserved by traditional financial institutions. NBFCs serve the overlooked sectors often ignored by conventional banks, infusing a positive outlook for those seeking credit facilities. As NBFCs expand their scope of services, the need for structured funding mechanisms arises. DrNBFC assist in debt raising for NBFCs.
Debt raising is one such method of infusing capital to meet the operational requirements. NBFCs can leverage this capital to scale up, manage liquidity, restructure existing debts, and drive continuous growth. Besides, the Reserve Bank of India's (RBI) regulations also make it mandatory for NBFCs to maintain robust capital structures.
At DrNBFC, we empower NBFCs with customised debt syndication and fundraising solutions. Our services include evaluating your capital requirements, identifying suitable lenders, providing support with paperwork, structuring deals, and ensuring regulatory compliance. We guide you through a transparent and efficient fundraising journey to meet your capital requirements. We liaise with different financial institutions, including national and private banks, institutional investors, and development finance institutions to help you secure cost-effective funding for your business.
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DrNBFC is a team of expert consultants, and by partnering with us for debt syndication, you can leverage various benefits. Our team offers unmatched expertise, agility and networking prowess to empower your NBFC through debt financing for NBFCs.
DrNBFC offers a transparent, comprehensive and structured process of debt raise for NBFCs. Our expert consultants get in touch with you to evaluate your financials to understand your funding requirements. Based on your business goals, our team designs a suitable debt structure and instruments, including a term loan, NCD, or ECB. We also select appropriate lenders and investors, assist with paperwork and proposal submission. Additionally, we provide support throughout due diligence, RBI compliance, and negotiation. We simplify our NBFC fundraising process for you.
As the first step in the Debt Raise for NBFC process, our NBFC funding experts review your funding requirements, business model, and financial stability. It helps us identify the best suitable debt instruments for your NBFC, and facilitate eligibility for lender or investor engagement.
As the next step in the NBFC fundraising process, our team designs robust financial projections, cash flow models, and a persuasive pitch deck to effectively align your NBFC with institutional investors and lenders.
In the next step of debt financing for NBFCs, our team reaches out to our network of financial institutions, including banks, DFIs, NBFCs, AIFs, and institutional investors. It helps us identify and engage the right funding partners to meet your capital needs.
The next part of our NBFC capital raise strategy involves negotiating key terms, such as tenure, repayment structure, interest rates, and securities. We design a strategic debt package that considers and is aligned with your business goals and financial health.
In the next stage of our NBFC capital raise strategy, we assist your NBFC in collecting, reviewing, and submitting all the required documents. These documents include board approvals, financials, KYCs, and legal paperwork, in line with the RBI and lender compliance.
In our process of Debt Raise for NBFCs, we guide your NBFC in leveraging smooth fund disbursement. However, our support does not end here, and we continue to assist you with post-deal reporting, compliance, and lender relationship management to facilitate long-term success.
Fuel your NBFC’s growth with structured debt raise for NBFCs as DrNBFC connects you with funding sources aligned with your business goals.
Explore funding options like Term Loans, NCDs, ECBs, Working Capital, Structured Finance, and more with our strong 100+ Lender Network.
Is your organisation confused about the process of Debt Raise for NBFC? You don’t need to worry anymore, because as your facilitator, DrNBFC is here to guide you in analysing the need to raise debt capital to achieve sustainable growth, boost liquidity and meet RBI compliance requirements. Before we connect you with the right investment sources for your funding needs, let us understand the scope of our debt raise services.
If you are a newly registered NBFC seeking capital to scale operations by solidifying your lending portfolio, onboarding talent, and establishing credit lines, we can help. We will support you in raising debt to meet all your organisational requirements.
If your NBFC is a mid-sized lender operating in semi-urban or rural markets (Tier II and Tier III cities), we will help you fulfil your financial needs. Our services can help you leverage capital to grow your loan book, increase credit limits, and diversify your funding sources.
If you are in the business with financial stability but have limited access to affordable capital, we can help you manage your capital needs through debt raising. You can benefit from structured debt to overcome your cash flow challenges and improve operational efficiency.
If you are a fintech-enabled NBFC and are rapidly scaling your digital lender profile, you can explore debt raise financing. This mode of capital facilitates rapid and strategic injection of borrowed funds to boost product innovation, customer acquisition, and maintain operational momentum.
If your NBFC is looking to refinance high-cost liabilities, strengthen its balance sheet, and ensure long-term financial stability, debt raise financing can be a helpful option. Our services can fulfil your capital needs and help you lower interest expenses, boost cash flow, and upgrade your creditworthiness.
As a facilitator, DrNBFC helps your NBFC in compiling various documents required for NBFC loan debt syndication. Our experienced consultants guide you in stamping, signing, legally vetting, and meeting RBI's scale-based regulatory norms for all your documents, which include the following:
As part of compliance with RBI guidelines, we assist you in submitting the certified copy of the board resolution that serves as authorisation for loan syndication and appointing signatories.
We assist you in obtaining the Certificate of Incorporation (CoI) from the ROC and submitting it along with your NBFC License. Both these documents confirm the legal existence of your NBFC and RBI authorisation, enabling you to conduct your business lawfully.
Both Memorandum of Association (MoA) and Articles of Association (AoA) are important, as these documents include clauses that specify the financial transactions and borrowing arrangements for your NBFC.
We help you arrange your audited financial statements for the last 2 to 3 years, along with the Net Owned Funds Certificate (NOF), in compliance with RBI norms.
Our consultants guide you in acquiring a no-lien balances certificate that confirms a clean banking record and adequate funds for your NBFC, a mandatory requirement for successful debt syndication.
Our NBFC specialists help you prepare your directors' profiles and credit history by facilitating KYC and CIBIL reports as a mandatory RBI compliance for NBFC loan syndication documentation.
Our team guides you in managing the statement of intent to ensure compliance with RBI's fair-practices and credit policies.
We support you in preparing and submitting a detailed business plan and financial projections that include the purpose of funds, repayment schedule, and asset-liability match for syndication.
Our team guides you in preparing and submitting time sheets and a loan syndication agreement that outlines participants, allocation ratios, interest rate, tenure, security structure, and disbursement schedule.
We facilitate the collection of various security documents, such as sanction letters, hypothecation/charges, trustee deeds, guarantees, or debentures (NCDs), to meet the loan syndication requirements.
NBFCs need debt funding, which is essentially borrowed money, to maintain adequate cash to meet various operational requirements. A Debt Raise for NBFCs allows them to expand their loan books, replace costly old loans, and improve their credit ratings. It is a way to maintain financial stability, meet RBI compliance, manage risks more effectively, and operate without interruptions.
Debt financing for NBFCs is a way to inject short term cash into the organisation and support daily operations without any hassles. It helps the business balance its asset-liability mismatches. Sufficient liquidity protects an NBFC against sudden cash flow disruptions and facilitates on-time loan disbursements.
By raising money through NBFC funding options, NBFCs can scale their lending capabilities and boost their loan portfolio. Adequate funds enable them to expand their market reach and increase revenues by giving out more loans. In simple terms, more loans lead to earning more interest, which in turn leads to improving the overall income.
The process of Debt Raise for NBFC enables them to substitute short-term borrowings with long-term debts. Short-term borrowings, such as commercial paper, are expensive in comparison to longer-term debts, which offer an affordable alternative with reduced interest rates and rollover risks.
Debt financing for NBFCs is a way to diversify their strategic funding, which in turn, improves their creditworthiness. A healthy combination of equity and debt is a sign of a robust capital structure, which helps an NBFC to improve its credit rating and, at the same time, allows it to borrow money at lower interest rates.
Debt funding requires debt planning, which helps NBFCs to plan their borrowings through a structured and wisely planned approach. Meticulous considerations during the NBFC capital raise strategy enable them to fulfil all RBI compliance requirements without relinquishing their ownership rights or equity. Therefore, ensuring a strong financial health in the long run.
Having a reliable, diversified and structured source of funds reduces the dependency of NBFCs on any single source. It helps them develop resilience against market shocks, ensuring continuous operations during financial stress. An NBFC with a diversified portfolio expands safely, manages risks effectively, and adheres to RBI regulations to maintain financial stability.
The debt raise for NBFCs is a comprehensive process. It enables NBFCs to access various debt instruments, raising funds that help them optimise funding, liquidity, regulatory capital, and manage risks. We offer end-to-end support to NBFCs to raise both short-term as well as long-term debt through different debt instruments, including:
As a part of NBFC funding options, we help your business arrange finances through term loans from nationalised banks, private sector lenders, and other NBFCs. They offer fixed repayment schedules, which enable the businesses to meet capital expenditures, undertake refinancing, and consider expansion plans.
Debt financing for NBFCs includes non-convertible debentures (NCDs). NCDs are long-term debt instruments in which the principal is paid upon maturity, along with the fixed interest. Qualified Institutional Buyers (QIBs), High Net-Worth Individuals (HNIs) and family offices find NCDs an appealing investment scheme.
Subordinated debt is another form of debt financing for NBFCs. It includes a loan type that NBFCs can repay once they have cleared other debts, in case the business suffers from financial losses. It is counted as Tier-II capital, facilitating RBI compliance with capital rules. As it is a risky investment, it yields high returns, making it an attractive opportunity for investors to bolster the NBFC's capital adequacy.
Cash credit and overdraft are working capital facilities that serve as short-term loans for NBFCs. They are easily accessible and help NBFCs maintain liquidity for daily operations, making them a helpful alternative for these institutions. Working capital limits also help an NBFC manage its cash flow fluctuations efficiently.
External Commercial Borrowing (ECB) is another available instrument for the NBFC fundraising process. Simply put, ECB is the process of borrowing money in foreign currency from outside India. However, to avail the ECB option, NBFCs must adhere to the RBI guidelines. In comparison, ECB is a cost-effective option, helping NBFCs meet their large-scale funding requirements.
Securitization is when NBFCs package various loans (such as home or car loans) and convert them into tradable securities (ABS/MBS/CDOs). The tradable securities are then sold to investors, helping the NBFC raise cash upfront, with lower risks. It also boosts their lending capability. On the other hand, a direct assignment is when NBFCs sell their loan portfolios directly, without creating securities, to a bank or another financial institution. It facilitates the buyer (financial institutions) to manage repayments directly from the borrower.
Hybrid debt instruments, such as mezzanine debt, are a combination of a loan and an investment. These instruments provide financial assistance to a business without requiring any collateral or security. They are paid after other loans are cleared. They are flexible and often include additional benefits, such as shares (warrants) or interest that can be paid later (PIK interest). Debt raise for NBFCs through this instrument helps fund their growth without giving up control, or when they fail to secure regular loans.
DrNBFC provides end-to-end business management solutions and expansion support to NBFCs. Given below are the reasons why partnering with DrNBFC can be an excellent choice to debt raise for NBFCs in India-
Non-banking financial companies (NBFCs) require funds to finance their operations and continue lending activities. One of the common ways to mobilise capital is through a Debt Raise for NBFC. This process enables NBFCs to borrow funds from various sources, including banks and financial institutions, or by issuing debt instruments such as bonds.
NBFCs secure capital at a time when they plan to diversify their lending portfolios or need to restructure existing debt. As an NBFC facilitator, DrNBFC has successfully guided over 100 NBFCs in meeting their capital requirements through debt financing.
Different types of NBFC funding options are available for existing NBFCs to raise funds for their operational or restructuring needs. As your debt advisory partner, DrNBFC guides you in choosing the best source to raise funds for your NBFC.
We evaluate your working capital requirements and suggest the best alternative from term loans, debentures, bonds, non-convertible debentures (NCDs), commercial paper, loan syndication, securitisation, and equity or foreign direct investment. After an in-depth assessment, we guide you through the selected option, helping your NBFC meet compliance requirements for timely regulatory approvals.
Debt financing for NBFCs and equity financing are two distinct sources for NBFCs to raise capital. Although both facilitate raising capital, they differ from each other.
Debt financing enables an NBFC to borrow money, which must be repaid along with the interest amount. However, even though debt financing does not affect NBFC's ownership rights, it certainly adds to its financial liability. On the other hand, equity financing is the process of raising capital by selling company shares. Even though equity financing does not involve any repayment obligations, it dilutes ownership rights, and the NBFC must share them with the investors.
NBFC loan syndication is a process in India where various non-banking financial companies (NBFCs) and other lenders collaborate to offer a substantial loan amount to a single borrower. Loan syndication is used when a single NBFC is unable to provide a large amount to the borrower owing to regulatory compliance, monetary restriction or any other reason.
In such a case, NBFC loan syndication serves as a legal alternative to arrange the financial requirements through multiple lenders, including banks, NBFCs, and venture capital firms. This method helps the lenders to distribute risk and access larger capital pools. DrNBFC helps arrange loan syndication services. You can contact us to learn more.
The NBFC fundraising process is exhaustive and must be handled by professionals to ensure accuracy and on-time approvals. It is a multi-stage process that starts with the evaluation of the capital required. It involves identifying the best funding sources to meet your NBFC's needs, preparing all the relevant documents and approaching lenders or investors. It also outlines drawing the negotiating terms, completing the due diligence process, and executing the agreements.
It also mandates that NBFCs meet all post-approval regulatory compliance requirements once the funds are disbursed. It requires a structured approach, and our team has the expertise to deliver solutions that help your NBFC meet its capital requirements, facilitating growth and operations.
A successful NBFC capital raise strategy blends various elements to drive successful results. It involves aligning funding sources, such as debt, bonds, equity, and syndication, with debt maturity profiles, asset-liability management, and cost-efficiency goals. Once evaluated, the NBFC is in a position to make informed decisions.
NBFC bond issuance is the process by which non-banking financial companies (NBFCs) raise capital by selling debt securities, such as bonds or debentures, to investors. Essentially, bonds are loans taken by NBFCs from the public to fund their operational needs, expansion plans, and meet liability obligations. Bonds are usually issued for a period of medium to long terms, where NBFCs offer fixed interest payments and repay the principal amount at maturity.
Yes, investment through foreign sources is one of the NBFC fundraising options. Indian NBFCs can leverage 100% FDI, as permitted, but are subject to the minimum capitalisation norms issued by the Government of India (GoI). FDI enables an NBFC to cover its lending, leasing, and asset management services, facilitating operational efficiency.
Yes, non-banking financial corporations are eligible to borrow from banks under the debt raise for NBFC initiatives. Not just banks, NBFCs frequently raise funds from various corporate lenders to meet their capital requirements, lending targets and managing liquidity.
Debt financing is an option available to NBFCs for meeting their short- to medium-term capital requirements through loans. On the other hand, the alternative of bond issuance is suitable when NBFCs need to fulfil their long-term needs. Bond issuance is managed by reaching out to a broader investor base, resulting in lower capital costs.
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