Business Model of NBFCs Explained


Everyone loves to buy smartphones, cameras, and other gadgets on low-cost EMIs but do you know who gives these loans at such low interest rates? NBFCs are the entities that help us buy these expensive things or get the loans at low interest rates, but are they equally loveable when it comes to investing in them? This course will help you know how these NBFCs work and how to analyze them before investing in them.

1 Modules

15 mins


Course Outline

What you will learn:

  • Understand the business model of NBFCs.

  • Understand the type of loans and ratios associated with the NBFC sector.

  • Understand the type of risks related to the NBFC sector.

  • Understand the concept of asset-liability mismatch.

  • Know the case study of IL&FS.

About Course

If you do not live under a rock then you must have opened a bank account in any Indian Bank. That means you trust the bank with your hard-earned money and are willing to give it to them for safekeeping until you need it. Banks and NBFC have absolute trust in the general public and who can blame them? People’s trust has not reduced even after scams like the Vijay Mallya scam, Nirav Modi scam, etc. NBFCs even help us buy expensive things or get loans at low interest rates, but are they equally loveable when it comes to investing in them? Get ready to question your trust in banks and NBFCs and understand why, despite so much popularity, why is the NBFC sector in constant distress. How do these prominent NBFCs earn money from the public's funds who trust them that their money is secured with these NBFCs?


This course will help you to learn about what makes the Balance Sheet of this sector so dangerous that has led to the failure of giant infrastructure NBFCs like IL&FS. You will also learn what causes such danger and how to identify these risks as an investor.

What you will get?





Course Syllabus

  • Asset Liability mismatch in NBFCs


Need answers? Find them here

There are no prerequisites for the course. However, it would be helpful if you first watch ‘How to analyze NBFCs’ to understand the NBFC business model first. 

Quick, quicker, quickest! This course falls under the Sprint category and can be completed in 15 minutes duration.

This course talks about risks faced by NBFCs that make their Balance Sheets dangerous and how NBFCs cope with it. 

Since the content of the course is pretty dynamic, we do not provide any certification for it. Trust us, you will definitely love it either-or. Moreover, we have a few very cool specialized courses that offer you Quest & BSE Institute-affiliated certifications. To know the details, please click here.


No, you do not need to install any specific software for this course. However, it is advised for a user to have an active Internet connection and an updated web browser for a seamless learning experience. 

Finology provides you with an opportunity to access all its tools and courses by subscribing to Finology One. Hence, you can access this course as long as your subscription of Finology One is active.

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