About: NBFC MFI is a non-deposit taking NBFC (other than a company licensed u/s 25 of the Indian Companies Act, 1956). It meets the following conditions:
- Minimum Net Owned Funds (NOF) of Rs.5 crore. (For those registered in the North Eastern Region of the country, Rs. 2 crores is required as minimum NOF).
- At least 85% of its Total Net Assets are in the nature of “Qualifying Assets.”
Detail: The only difference between an NBFC MFI meaning and other NBFC meaning is that while other NBFCs can operate at a very high level but MFIs cater to only the smaller level of social strata, with the need of smaller amounts as loans. An NBFC, not qualifying as an NBFC MFI, is not to extend loans to the micro-finance sector, which, in aggregate, is more than 10% of its total assets.
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