List of Best NBFC Stocks in India (2025)

NBFC stocks are shares of Non-Banking Financial Companies listed and traded on stock exchanges. These companies offer financial services similar to those of banks, but they do not hold a banking license.

1. Bajaj Finance Ltd: Bajaj Finance Ltd offers consumer loans, SME finance, and housing credit, serving urban and rural customers across India with a diversified lending portfolio.
2. Jio Financial Services Ltd: Jio Financial Services Ltd provides digital loans, insurance distribution, and payment solutions, leveraging Reliance’s ecosystem to expand financial services in India.
3. Cholamandalam Investment and Finance Company Ltd: Cholamandalam Investment finances vehicles, home loans, and SMEs, focusing strongly on semi-urban and rural lending markets in India.
4. Shriram Finance Ltd: Shriram Finance Ltd lends for vehicles, MSMEs, and gold, maintaining a strong customer base among India’s middle-income groups.
5. Muthoot Finance Ltd: Muthoot Finance Ltd provides gold loans and allied financial services, holding a strong presence in South India.

Here are a few steps you can follow to invest in non-banking financial company shares:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Conduct thorough research into the top NBFC shares in India that align with your investment thesis. Investors can use tools like the Tickertape Stocks Screener to do this. The screener offers 200+ built-in filters to choose from, and investors can choose the parameters to research and generate different NBFC lists.
3. Place a ‘Buy’ Order on the top NBFC stocks in India

• Sector Contribution: NBFC stocks represent companies that provide nearly one-fourth of India’s total credit, making them a key segment of the financial services industry.
• Flexibility and Innovation: NBFCs are quick to adapt to market changes and offer innovative, customised financial products, serving niche segments that traditional banks do not serve.
• Capitalise on Financial Sector Growth: NBFC stocks provide exposure to a sector in India that is expanding steadily as individuals and businesses require more financial products.
• Diversification: These companies operate across various lending categories, including housing finance, vehicle loans, gold loans, and MSME credit. The growth of these categories will indirectly benefit NBFCs by expanding their lending opportunities and customer base.

• Regulatory Dependence: NBFCs operate under RBI oversight, and changes in compliance norms or capital requirements can affect their business models. 
• Default and Asset Quality Risk: If borrowers fail to repay, then the NBFCs may face rising NPAs and weaker asset quality, which may impact the financial performance of NBFC stocks. 
• Liquidity Dependence: A heavy dependence on borrowing may lead to liquidity issues, especially for the emerging NBFC stocks, particularly during market stress or restricted access to funding sources.
• Interest Rate Impact: The cost of borrowing for NBFCs is closely linked to interest rate cycles. Any change in interest rate may affect lending margins, profitability, and create volatility in NBFC stock performance.

• Financial Strength: The stability of an NBFC depends on its financial health, measured through capital adequacy, profitability, and asset quality. Weak earnings or rising NPAs directly influence confidence in NBFC stock investment and long-term sustainability.
• Loan Portfolio Mix: NBFCs operate across different segments like housing finance, SME loans, gold loans, and vehicle finance. The balance of these segments determines risk exposure, and investors must review this aspect during NBFC shares analysis..
• Market Trends: The sector is closely linked to demand for housing, vehicles, and small business credit. Observers track NBFC stock trends to understand how shifts in consumption and infrastructure financing affect company performance across cycles.
• Company Size: The NBFC universe includes large, mid, and small companies, each with different levels of risk and growth potential. So it’s important to understand how NBFC small-cap and NBFC mid-cap stocks contribute to the sector alongside larger players.
• Credit Ratings: Credit ratings given by agencies indicate the repayment ability and financial stability of NBFCs. A downgrade increases borrowing costs, reduces funding access, and puts pressure on NBFC stock performance, especially in uncertain markets.