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The financial sector of India is growing rapidly as various new Banks, NBFCs and other financial Institutions are coming in the market. They are backed by the current digital equipment and technology. The banks being the sole financial intermediaries in the past have accumulated heavy debts, their lending capacity is declining day by day due to their increased NPA (Non-Performing Assets) and hence NBFCs are coming into existence and marking their presence in the financial market. The main reasons for the success of NBFCs are lower costs, wider reach, and strong risk management capabilities with a better understanding of customer segments. NBFCs have largely contributed towards the growth of the economy over the past few years.

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