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Services & Financial sector · Regulated NBFCs & fintech lenders

Debt advisory for NBFCs & Fintech.

On-lending lines from banks, NCD placement for capital diversification, securitization of receivables, and ECB structures for NBFCs and fintechs. RBI-regulated NBFC structuring expertise.

₹100 Cr+ mandates NCD is primary capital Securitization expertise
WORKING CAPITAL TERM LOANS PROJECT FINANCE STRUCTURED DEBT ECB NCD SERVICES & FINANCIAL NBFCS & FINTECH SECTOR

How does BIG LOANS work with NBFCs and fintech lenders?

BIG LOANS arranges debt mandates for Indian regulated NBFCs (Type I, Type II, IFCs, MFIs, HFCs) and lending fintechs — for whom debt IS the raw material of business. Most common products: bank term-loan lines (banks lend to NBFCs who on-lend to retail / SME); NCD placement (primary capital source for most established NBFCs); securitization of receivable pools (PSL/PTC transactions); and ECB for larger NBFCs with structuring through GIFT IFSC or mainland route.

Section 01 — NBFCs & Fintech debt landscape

Debt is the raw material.

For NBFCs and lending fintechs, cost of borrowing is the single most important variable after asset quality. Every 25 bps reduction in borrowing cost translates directly to spread and ROE. The capital structure typically mixes bank term-loan lines, NCDs (50-70% of liabilities for most established NBFCs), securitization (off-balance-sheet for some asset classes), and sometimes ECB for larger players.

Regulatory framework is dense — RBI prescribes NBFC asset classifications (Type I, Type II, IFCs, MFIs, HFCs), capital adequacy (Tier 1 / Tier 2), exposure limits, and the SARFAESI / IBC framework for asset enforcement. All of this affects debt structuring.

NBFC sector
~12% of credit
NCD share
50-70% of liab.
Bank lines
Major source
Securitization
Growing
Section 02 — Common funding situations

When nbfcs & fintech businesses approach us.

Common funding situations for NBFCs and fintechs.

01

Bank on-lending lines

Term loans from banks to NBFC for on-lending. ₹100-1,000 Cr per bank, multiple bank relationships typical.

02

NCD placement

Private placement of NCDs to mutual funds, insurance, AIFs. ₹250-2,500 Cr issues, listed or unlisted.

03

Securitization

Securitization of receivable pools via PTC / Direct Assignment routes. Off-balance-sheet capital release.

04

Subordinated debt / Tier 2 capital

Sub-debt to bolster Tier 2 capital, typically through NCD placement to specific investors.

05

ECB for larger NBFCs

Cross-border debt for larger rated NBFCs. Restrictions apply per RBI ECB framework for NBFCs.

06

Fintech growth + working capital

Bank credit lines + alternative funding for fintech lenders — combining bank lines + AIF credit fund + venture debt.

Section 04 — Lender appetite

Bank + capital market + securitization mix.

NBFC funding combines bank lines, NCD investor universe, and securitization buyers.

01

Major banks (PSU + private)

SBI, BOB, HDFC, ICICI, Axis — all have large NBFC lending desks. Typical ticket ₹100-1,000 Cr per bank.

02

NCD investors

Mutual fund debt funds (largest), insurance companies (LIC, HDFC Life, SBI Life), AIF Cat-II funds, family offices.

03

Securitization buyers

Banks (for PSL fulfillment), mutual funds, insurance companies — primary buyers of PTCs and Direct Assignment pools.

04

Foreign banks (selective ECB)

StanChart, HSBC, DBS — selectively for top-rated larger NBFCs.

05

AIF credit funds (sub-debt)

Active for NBFC sub-debt / Tier 2 capital tranches.

Section 05 — Our process

How nbfcs & fintech mandates close.

Same 5-stage process for any large-ticket corporate debt mandate, applied to nbfcs & fintech specifics.

01

Discovery & sector diagnostic

NDA, then a short call to understand the business model, key financial drivers, capital need. Sector-specific risk factors mapped early.

Week 1
02

Structuring & lender shortlist

Optimal facility mix, tenor, security. Lender shortlist tuned to sector appetite — banks for vanilla, NBFCs / AIFs for specialty structures.

Week 2 – 3
03

IM + lender outreach

Sector-grade Information Memorandum, financial model, market analysis. Pitched to shortlisted lenders in parallel.

Week 3 – 8
04

Competing term sheets & sanction

Multiple sanctions negotiated in parallel on pricing, covenants, security. Final lender(s) selected.

Week 8 – 12
05

Documentation & drawdown

Loan agreement, security creation, CPs satisfied, drawdown. Sector-specific compliances (RERA, FEMA, SEBI, etc.) handled along the way.

Week 12 – 16
Section 06 — FAQ

NBFCs & Fintech debt — FAQs.

Three reasons: (a) diversification away from banks reduces concentration risk; (b) longer tenor than bank lines (NCDs run 3-10 years vs bank lines 1-3 years); (c) pricing competition from a broader investor universe (mutual funds, insurance, AIFs) often beats bank pricing for AA+ rated NBFCs.
Securitization removes the receivable pool from the NBFC's balance sheet (true sale), freeing up capital for new lending. Improves capital adequacy ratio. Banks buy these pools to fulfill PSL (Priority Sector Lending) requirements, which gives NBFCs a captive demand.
Limited. Pure-play fintechs without RBI-regulated NBFC license typically can't borrow on standard NBFC terms. They access debt through (a) becoming an NBFC themselves, (b) co-lending arrangements with regulated NBFCs, or (c) venture debt from AIF funds.
Tier 1: equity capital + retained earnings + perpetual non-cumulative preference shares. Tier 2: subordinated debt, revaluation reserves, certain hybrid instruments. RBI prescribes minimum Tier 1 ratios and overall CRAR (Capital to Risk-weighted Assets Ratio).
NBFCs & Fintech mandate?

Let's structure your nbfcs & fintech funding.

Share a one-page brief on your business and funding need. We respond within one working day with feasibility, structuring and lender shortlist tuned to your sector.

BIG LOANS BIG LOANS

Bigger Support, Brighter Future. India's specialist debt advisor for ₹100 Cr+ corporate funding mandates. Pan-India. Confidential. Senior banker-led.

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BIG LOANS is the trade name of [Legal Entity Pvt. Ltd.], CIN: [xxx], registered at [address]. BIG LOANS is a debt advisory and loan facilitation firm. It is not a bank, NBFC or any other lending institution registered with the Reserve Bank of India, does not accept public deposits, does not lend money on its own books, and does not issue any loan, credit facility or financial product directly. All loans, limits and credit facilities are sanctioned, disbursed and serviced solely by the relevant banks, NBFCs, AIFs and other regulated lenders, in accordance with their internal policies and applicable RBI / SEBI / IRDAI guidelines. BIG LOANS is empanelled as a Direct Selling Agent / Channel Partner with various banks and NBFCs and may earn sourcing fees from such lenders for successful disbursements. Any borrower fees are governed exclusively by a written engagement letter. Information on this website is general in nature and not financial, legal or tax advice. Please consult your CA / advocate before acting.

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