Nabard Financial Services

What Nabard Financial Services does

NABFINS Limited (Nabard Financial Services) is a Bengaluru-headquartered, non-deposit-taking NBFC-MFI registered with the Reserve Bank of India and a subsidiary of the National Bank for Agriculture and Rural Development (NABARD), which holds not less than 51% of the shareholding alongside equity from Government of Karnataka, Canara Bank, Union Bank of India, Bank of Baroda, Dhanlaxmi Bank, and Federal Bank. The company extends microfinance credit to low-income households and the unorganized sector through Self Help Groups (SHGs), Joint Liability Groups (JLGs), Second Level Institutions (SLIs), and individual traders/micro-enterprises, with loan tickets ranging from Rs. 25,000 (skill loans) to Rs. 15 lakh (top-tier SHG loans) and interest rates starting at 22.95% for core group loans and 4-17.85% for concessional livelihood programmes such as PTSLP and PARFI skill loans. It operates a dual-channel distribution model combining 477 own branches across 18 states and 1 Union Territory with a network of 300+ empanelled Business & Development Correspondents/Facilitators (about 200 active, plus 119 dedicated Business Correspondents with 204 staff).

The company was incorporated in 1997, re-registered as an NBFC in 2008, and registered as an NBFC-MFI in February 2015, and was explicitly established by NABARD to set benchmarks and standards for the Indian microfinance sector. As of November 2024, NABFINS served 11.23 lakh active borrowers with a balance sheet of Rs. 3,332 Cr and a 3,300-member team organized into 28 regional units. The technology backbone is a Core Microfinance Solution with planned Go-Live in April 2025, designed to digitize end-to-end loan lifecycle (onboarding, disbursement, recovery), complemented by a Finpage portal, Nabfinet compliance module, Jan Samarth and e-KCC integrations, and an M-SWASTh digital healthcare partnership. Supplementary offerings include credit life insurance (Rs. 0.84 per Rs. 1,000 sum assured), individual traders loans, housing loans, and CSR-anchored livelihood programmes in partnership with organizations such as Swades Foundation, Sulabh International, and SKDRDP.

Name

Nabard Financial Services

Legal name

NABFINS Limited

Website

https://nabfins.org

Company type

Private

Founded year

1997

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

NABFINS Limited is a Bengaluru-headquartered NBFC-MFI and NABARD subsidiary that extends group and individual microfinance credit to low-income households and the unorganized sector across 18 Indian states via 477 branches and 300+ partner facilitators.

Ownership category

akta.pro rank

Product category

Microfinance

NAICS

Credit Intermediation and Related Activities (522)

SIC

Personal Credit Institutions (6141), Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Microenterprise Group Lending (Joint Liability) (FSAKAGAH)

akta.pro secondary industries

Co-signed & Joint Personal Loans (Unsecured Installment) (FSAKAAAJ), Personal Loan & Unsecured Credit Intermediation (FSAEAEAM), National Development Banks & State Development Finance Institutions (DFIs) (BPADACAC)

Keywords

• Microfinance lending
• Self help group credit
• Joint liability lending
• Rural financial services
• Micro enterprise loans

Headquarters

HQ city

Bengaluru

HQ country

India

HQ region

Asia

Offices5 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Microfinance Lending: NABFINS generates revenue primarily through interest income from microfinance loans extended to Self Help Groups (SHGs), Joint Liability Groups (JLGs), Second Level Institutions (SLIs), and individual traders/small businesses. Interest rates charged are among the lowest among NBFC MFIs in India.

Pricing tiers

Go-to-market motion3 records

Distribution channels4 records

Marketing channels5 records

Core offering

NABFINS Limited is a non-deposit taking NBFC-MFI that extends microfinance credit to Self Help Groups (SHGs), Joint Liability Groups (JLGs), Second Level Institutions (SLIs), and individual traders/small businesses, leveraging social collateral and group-based lending. The company operates a multi-channel delivery model combining 477 direct branches with a network of over 300 Business & Development Correspondents/Facilitators across 18 states and 1 Union Territory in India.

Product overview

NABFINS (NABARD Financial Services) is a non-deposit taking NBFC-MFI and subsidiary of NABARD, providing microfinance and financial services to low-income households and the unorganized sector. The company operates a multi-channel delivery model across 18 states and 1 union territory through 477 branches. The core product is Group Lending (SHGs and JLGs) delivered via two models: Partners-B&DC (through Business Correspondents/Facilitators) and Direct Lending. Complementary offerings include Lending to Institutions (SLIs), Traders Loan, Credit Under PTSLP (IFAD programme), and Skill Loan Model (PARFI partnership). Micro-Insurance Services provides linked credit life insurance.

Differentiator

Problem solved

Functional benefit

Products and services

• Group Lending Microfinance lending to Self Help Groups (SHGs) and Joint Liability Groups (JLGs) through social collateral and peer pressure dynamics. Delivered via two models: Partners-B&DC (through Business & Development Correspondents/Facilitators) and Direct Lending Model. Loan amounts up to Rs. 15 Lakh for SHGs and Rs. 7.5 Lakh for JLGs at 22.95% interest for low-income households.
• Lending to Institutions Credit facilities for Second Level Institutions (SLIs) including producer collectives, farmers' associations, and SHG federations engaged in aggregation, value addition, and rural producer support services. Variable interest rates from 11.80% to 17.30% based on institution grading.
• Traders Loan Individual loans for traders and small/micro-enterprises, including women-owned businesses, providing working capital and business expansion financing at competitive rates of 23.50% for loans up to Rs. 3 Lakh.
• Credit Under PTSLP Low-cost credit extended to beneficiaries of the IFAD-assisted Post Tsunami Sustainable Livelihood Programme, combined with Patient Capital support at 4% interest from Government of Tamil Nadu for micro-enterprise development in tsunami-affected areas.
• Skill Loan Model (PARFI) Strategic partnership with PARFI (Pan IIT Alumni Reach for India Foundation) to provide vocational training loans up to Rs. 25,000 at 6% interest for industry-specific skill development among underserved borrowers.
• Micro-Insurance Services Credit life insurance services for borrowers and co-obligants, providing financial protection linked to microfinance loans at Rs. 0.84 per Rs. 1000 of sum assured per month for both borrower and co-obligant.

Quantifiable outcome

• 11.23 lakh active borrowers served
• +4 more outcomes

Named customers3 records

Segments5 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Nine partnerships are on record, tiered core and minor.

• M-SWASThcoreStrategic or Co-development Partner · 1 July 2023NABFINS signed MoU with M-SWASTh to offer Digital Healthcare Services to its borrowers and rural clientele. This partnership enables provision of healthcare services alongside financial services to clients.
• Swades FoundationcoreStrategic or Co-development Partner · 1 December 2020NABFINS partnered with Swades Foundation for rural empowerment initiatives including dairy value chains for marginal farmers and empowerment in Raigad district.
• Shri Kshetra Dharmasthala Rural Development Project (SKDRDP)minorStrategic or Co-development Partner · 1 December 2020Visit to Shri Kshetra Dharmasthala Rural Development Project for knowledge sharing and partnership exploration in rural development initiatives.
• Tamil Nadu GovernmentcoreStrategic or Co-development Partner · 1 January 2020NABFINS signed MoU with Tamil Nadu Government for project expansion, enabling wider reach of financial services in the state.
• Sulabh International Social Service OrganizationminorStrategic or Co-development PartnerNABFINS joined hands with Sulabh International for Swachh Bharat Abhiyan. CSR projects include construction of school toilets and community toilet complexes in various locations.
• GRAAM (Grameen REACH)minorStrategic or Co-development PartnerCSR partnership for interventions to address malnutrition among target populations.
• IRIDS B&DCminorChannel Partner/ Reseller/ DistributorCSR funded project for Tailoring & Embroidery Skill Training center at Ramanagara District.
• Eco FemmeminorStrategic or Co-development PartnerCSR partnership for adolescent girl children menstrual hygiene program.
• UNRC West TripuraminorStrategic or Co-development PartnerCSR partnership for Poultry Enterprise Development Programme.

Scale indicators10 records

Recent moves11 records

Expansion highlights7 records

Direct peers

• Muthoot Microfin: NBFC-MFI part of the Muthoot Group, providing JLG group loans to women in rural India. Comparable on product, customer segment and channel-led distribution.
• Satin Creditcare Network: NBFC-MFI offering micro-credit to underserved women in rural India through JLG group model. Directly comparable on group-lending product, channel and customer profile.
• Bandhan Bank: Universal bank that originated as an MFI and retains a substantial microfinance book. Directly comparable in microfinance underwriting and rural borrower focus, though broader product suite.
• Spandana Sphoorty Financial: Listed NBFC-MFI providing joint-liability group loans primarily to women in rural India. Closely comparable in ticket size, borrower segment and group-based delivery model.
• Asirvad Microfinance: Chennai-headquartered NBFC-MFI offering micro-loans to women through group lending. Directly comparable in product, target customer and South-India geographic mix.
• Fusion Microfinance: NBFC-MFI focused on lending to women SHGs/JLGs across under-served Indian states. Direct comparable on group-lending product, geography (rural/semi-urban) and customer income profile.
• Ujjivan Small Finance Bank: Small finance bank with MFI origins serving low-income and unbanked segments across India. Overlaps with NABFINS in microfinance borrowers and financial-inclusion mission; differs in deposit-taking bank charter.
• CreditAccess Grameen: India's largest NBFC-MFI by AUM, focused on group lending to women SHGs/JLGs in rural India. Closest direct peer to NABFINS in business model, customer segment and group-joint-liability underwriting.
• Svatantra Microfin: NBFC-MFI providing group loans to women entrepreneurs in rural India. Comparable on group-lending product, social-collateral underwriting and low-income customer focus.

Broad incumbents

• Equitas Small Finance Bank: Small finance bank with origins in microfinance and a large MFI book among self-employed and low-income segments. Competes with NABFINS in the same borrower cohort but operates with a full banking licence.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat7 records

Key risks6 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/channel/UCIjJ_cJ7JRukIMOtxK80tRQ
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Revenue estimate

Valuation estimate

Number of profiles

Profiles23 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Nabard Financial Services