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What we will do
Submitting an application to the RBI for prior approval
Signing of MoU & processing due diligence
Conducting a detailed evaluation of the NBFC
Publishing a public notice 30 days before the final NBFC acquisition
The balance sheet will be liquidated, and assets will be transferred to the buyer
Final step of the NBFC sale by signing the Share Transfer Agreement (STA)
If you are looking to sell your NBFC, you are in the right place. NBFCs are an important part of India’s financial system, offering loans, credit, investment and other financial services to individuals and businesses without having a banking license. NBFC for sale refers to selling an existing NBFC along with its licenses, assets and the customer base.
The NBFC’s in India are operated under the regulation of the Reserve Bank of India (RBI) to ensure stability, transparency and ensure consumer protection. By maintaining proper compliance, strong capital, and clear operations, your Non-Banking Financial Company will attract investors looking to buy an NBFC available for purchase.
At DrNBFC, we help you deal with the complex process of selling your NBFC in India. From preparing the documents to securing RBI approvals and finding the right buyer, we make sure that selling your NBFC is smooth and hassle-free.
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NBFC License for sale can offer attractive opportunities for you as an owner. If you have a valid RBI registration, clean compliance records and audited financial statements and are looking to sell your NBFC, DrNBFC can connect you to verified and interested buyers and ensure that your hard work is converted into high liquidity. The key benefits include:
The sale of Non-Banking Financial Company (NBFC) in India is a complex but structured process that involves the buyer and the seller. To sell your NBFC, you will have to get approval from the board of the company and the Reserve Bank of India (RBI).
The NBFC for sale will include an NBFC license, which is an RBI-approved license for the buyer to legally operate in the financial sector. However, you will need to get prior approval from the RBI to ensure the buyer’s financial soundness and management capabilities.
Given below is the stepwise guide to sell an NBFC in India with DrNBFC expert-led support-
The first step in the process of selling your NBFC is to get approval from the members of the board of the company. The approval in a Board resolution should come from both the buyer and the seller’s companies. This approval will act as the first legal step to show that the board is aware of the proposed sale or transfer of ownership.
Once the board has approved the sale of NBFC, the acquirer and the NBFC seller must sign a memorandum of understanding (MoU). This MoU will indicate that both parties are willing to move forward with the business deal, and a token amount of money must be given to the seller.
The MoU is a preliminary document outlining the obligations of the company, such as purchase price, timelines, payment schedules and the conditions of the sale, which is signed by the directors of the buyer and the seller company.
After the MoU, both the seller and the buyer will need to conduct a board meeting to formally approve the MoU, give approvals, discuss any company related issues, apply for RBI approval and address any queries that RBI might have about the MoU and its terms.
Board meetings are also held to decide on the location, date and time of the Extraordinary General Meetings (EGMs).
In India, you cannot sell or buy an NBFC without getting prior approval from the Reserve Bank of India (RBI). This is a mandatory requirement under the RBI’s guidelines on change of control for NBFCs.
You will have to submit an application with the required documents and send it to the RBI for review to ensure that the new owner meets the fit and proper criteria to run the NBFC.
After you receive the RBI’s in-principle approval, you will be required to publish a public notice about the acquisition. This notice must be published 30 days before the official sale or transfer. The public notice will have to be printed in one national daily newspaper and one local newspaper in the location where your NBFC is registered. The notice must include an opportunity for the public to raise objections, if any.
It is necessary for you to obtain a No Objection Certificate (NOC) from the NBFC’s creditors before the seller signs the share transfer agreement. This NOC will ensure that there are no liabilities and if any is addressed before the ownership of the NBFC is changed. Getting the NOC is essential as it will help you avoid any disputes in the future.
When the 30-day public notice period is over and you have received the RBI’s approval, the transfer of the NBFC company will take effect. Therefore, the NBFC seller can sign the Share Transfer Agreement (STA) with the buyer.
If the RBI approves the transfer, the buyer can legally acquire the company assets as the signed agreement will formally transfer the Non-Banking Financial Company (NBFC) to the new owner.
After you receive the NOC from the creditors and the signature on the share transfer agreement is signed by the seller and the buyer, the buyer can legally acquire the NBFC’s assets.
The balance amount for the purchase of the Non-Banking Financial Company (NBFC) will have to be paid to the selling company by the acquirer company during the signing of the share transfer agreement.
After the sale of the NBFC company is completed, the buyer will need to evaluate the company according to the RBI regulations to represent the current value of the company. The evaluation must be done through a Chartered Accountant, and the result must be sent to the Reserve Bank of India (RBI).
After acquiring the NBFC, the buyer will have to submit an application on the company’s letterhead to the Regional Office of the RBI. The application will need to include details about the buyer’s income source, information on the director and shareholders and if any changes have been made following the takeover of the NBFC.
All the assets that were owned by the NBFC seller shown in the balance sheet must be liquidated, and any liabilities must be paid off. The balance will be calculated according to the company’s net worth on the date of the sale.
Experience a quick and compliant NBFC sale with DrNBFC, India’s no 1 marketplace for selling and buying the Non-Banking Financial Company (NBFC).
DrNBFC will guide you through the entire process of obtaining prior approval from the Reserve Bank of India (RBI) to sell your NBFC. Our expert team ensures that all your documentation, compliance and due diligence are handled by us while we connect you with verified buyers to complete your NBFC sale smoothly.
If you own an NBFC and is looking to sell, it might not be a bad idea as the RBI is making strict changes in the market for the Non-Banking Financial Company’s (NBFCs) in India. The recent amendment made by the Reserve Bank of India (RBI) for NBFC ICC (Investment and Credit Company), NBFC MFI (Micro Finance Institution) and NBFC Factors has been increased to 10 crores. The table below shows the changes in the different types of NBFC:
| Types of NBFC | Net Owned Fund (NOF) Previously | NOF Required by end of March, 2025 | NOF Required by end of March 31, 2027 |
|---|---|---|---|
| NBFC - ICC | Rs. 2 Crore | Rs. 5 Crore | Rs. 10 Crore |
| NBFCC - MFI | Rs. 5 Crore and Rs. 2 Crore for NE region | Rs. 7 Crore and Rs. 5 Crore for NE region | Rs. 10 Crore |
| NBFC - Factors | Rs. 5 Crore | Rs. 7 Crore | Rs. 10 Crore |
Given below is the list of details needed from the NBFC seller-
All the businesses looking to sell the (Non-Banking Financial Company) in India will have to submit the listed documents below, along with the application. The key documents required for the sale of NBFC business are:
The sale of an NBFC in India will mandate you to obtain regulatory approval and compliance under the guidelines of the Reserve Bank of India (RBI). Any company looking to transfer ownership or sell the NBFC will be required to meet the eligibility criteria. The key eligibility criteria for the sale of NBFC business are mentioned below-
The most important step is to obtain prior approval from the RBI for business NBFC for sale and to take over the Non-Banking Financial Company (NBFC). It is mandatory for the NBFC and the buyer to submit an application with the documents to the regional RBI’s office.
When you apply for a change in control for an NBFC, you will need to submit a banker’s report to the RBI, which includes confidential details on the new director and shareholders. This will help the RBI to check if the new management has financial capability and is trustworthy.
The NBFC business for purchase must hold a valid Certificate of Registration (CoR) issued by the Reserve Bank of India (RBI). The company must also ensure that it is fully compliant with all RBI regulations and reporting requirements at the time of sale.
During the transfer of ownership, the buyer of the NBFC will have to ensure that they can meet the Net Owned Fund (NOF) requirements for the due diligence process as prescribed by the Reserve Bank of India. NBFCs have varying minimum NOF of ₹10 crore.
Before the sale of NBFC business, you should have a clean credit history with no major defaults, outstanding penalties or unresolved liabilities. If you are a buyer, you must do a comprehensive due diligence to ensure the NBFC have a clean credit record.
Before selling an NBFC, the company must ensure that all Know Your Customer (KYC) documentation and compliance records are complete, accurate and up to date. This also includes maintaining proper customer identification and Anti-Money Laundering (AML) procedures.
The NBFC should have its financial statements audited and updated for the latest financial years. All mandatory filings with the Reserve Bank of India, the Registrar of Companies and tax authorities must also be current.
The Non-Banking Financial Company’s Articles of Association (AoA), shareholder agreements, loan documents and other company contracts should not have restrictive clauses that prevent the transfer of shares or ownership for a smooth and legal NBFC sale.
As per the Reserve Bank of India (RBI) guidelines, when the NBFC decides to sell or proposes a change in control, a public notice must be issued in at least one leading national newspaper and one vernacular daily newspaper 30 days before the transfer or the sale.
To sell or transfer of ownership or changes in control of the Non-Banking Financial Company (NBFC), a prior approval from the Reserve Bank of India is mandatory. Additionally, all the documents submitted to the RBI must be filed in agreement with the company that is acquiring the NBFC. To get the approval from the RBI to sell NBFC in India, you will need to submit the following documents:
You will have to submit an application and a cover letter with your company’s letterhead to the regional office of the Reserve Bank of India (RBI) that has jurisdiction.
You will have to submit information about the new director and shareholders and include proof of identity, address proof, KYC documents, and educational and qualification documents enclosed with the application.
It is mandatory to add the information on the sources and explain where the money to buy the Non-Banking Financial Company (NBFC) is coming from. It is important to include the funding source data in the RBI for complete transparency.
The new director and shareholders must give a declaration and confirm that they are not involved with any similar businesses that are engaged in loan or deposit business, which is not registered with the RBI.
The new director and shareholders will have to give a declaration that they have not been part of any company whose application for the Certificate of Registration (CoR) was rejected by the Reserve Bank of India.
The new director and shareholders will be required to give a statement declaring that they do not have any criminal cases, whether ongoing or past, including under the Negotiable Instruments Act.
The new director and shareholders will need to provide a clean report from the bank to ensure that the proposed buyer or the acquirer of the NBFC has financial integrity and soundness.
As an NBFC seller, you will have to submit annual reports and financial statements from the beginning of your NBFC or for the last three years. Before submission, you must ensure that the financial statements are audited and updated.
You will be required to publish a public notice at least 30 days before the sale or ownership transfer. The public notice must be published in one national daily newspaper and one in the local daily newspaper.
When the promoters of a mid-sized NBFC with assets worth ₹50 Crore decided to exit the financial services sector, they faced a common challenge: how to complete the sale quickly, compliantly, and at the right valuation.
That’s when they partnered with DrNBFC, India’s leading marketplace for buying and selling Non-Banking Financial Companies.
The Challenge
Our Approach
The Outcome
Looking to sell your NBFC quickly and compliantly? Partner with DrNBFC and get expert-led support from India’s No.1 NBFC marketplace.
DrNBFC is the leading company that is helping entrepreneurs, investors, and NBFC owners sell and acquire Non-Banking Financial Companies in India. With our expert knowledge of RBI regulations and legal processes, we will help you secure prior approvals, handle due diligence and connect you with verified buyers.
Partner with DrNBFC and enjoy the best solutions for an NBFC company for sale-
The process to sell your Non-Banking Financial Company (NBFC) in India requires following the steps below:
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