Startups face a recurring challenge when they seek credit. Traditional banks usually insist on a long credit history, collateral, and extensive paperwork. Most early-stage founders cannot offer all of this, which creates a funding gap. Non-Banking Financial Companies (NBFCs) fill this gap by adopting flexible credit models, using technology to evaluate borrowers, and offering loans without heavy collateral.
Startups choose NBFCs because these institutions move faster, design specialized products for small businesses, and show greater willingness to take risks. Entrepreneurs need partners who understand cash flow variability, seasonal revenue, and rapid growth patterns. Some NBFCs stand out because they not only provide money but also work like enablers, ensuring entrepreneurs focus on scaling instead of battling red tape.
Here are the top 10 startup-friendly NBFCs in India, ranked by their flexibility, product range, speed of operations, and adaptability to startup requirements.
1. Lendingkart Finance
Lendingkart focuses on small businesses and startups. It built its reputation by making the loan process simple and fast. Instead of depending solely on collateral, it uses technology-driven credit analysis.
Why startups choose Lendingkart:
- The company disburses loans quickly, often within a few days.
- Documentation stays minimal compared to traditional banks.
- It supports businesses with limited financial history.
Products: Lendingkart offers business loans and working capital advances.
Strength: Lendingkart has built expertise in evaluating new-age businesses through alternative data points. That makes it an ideal partner for startups that do not yet have conventional credit records.
2. U GRO Capital
U GRO Capital focuses on small and medium enterprises. It created a niche by using technology and sector-specific knowledge in lending decisions.
Why startups choose U GRO Capital:
- The NBFC uses GST filings, bank statements, and business inflows to evaluate creditworthiness.
- Its proprietary “GRO Score” algorithm reduces the need for long credit histories.
- The company funds businesses across different industries, making its products relevant to varied startup sectors.
Products: U GRO Capital offers collateral-free business loans, supply-chain financing, and equipment finance.
Strength: By blending technology and deep market insights, U GRO Capital supports early ventures with speed and accuracy. It also scales funding as the business grows.
3. InCred Finance
InCred positions itself as a technology-driven lender. It combines the agility of fintech with the scale of an NBFC. Startups find its approach useful because it avoids rigid rules and instead focuses on data analytics.
Why startups choose InCred:
- It offers unsecured business loans and merchant financing.
- Entrepreneurs benefit from flexible repayment structures.
- It focuses on customer experience, making loan applications straightforward.
Products: InCred offers personal loans, education loans, and business loans tailored for startups.
Strength: InCred’s digital-first model ensures quick approvals and transparent processes. It has become popular among businesses seeking fast, collateral-free credit.
4. Perfect Finserv
Perfect Finserv holds the fourth spot in this ranking. Though not as large as some established NBFCs, it stands out for its flexible and personalized approach.
Profile: Perfect Finserv operates under the Perfect Group and delivers a range of financial services. Because it runs at a smaller scale compared to giant NBFCs, it can adapt faster and negotiate terms directly with clients.
Why startups choose Perfect Finserv:
- The company designs credit solutions to fit unique startup needs.
- It avoids rigid structures, giving founders space to negotiate repayment schedules.
- Its size allows it to adopt an entrepreneur-friendly approach.
Products: Perfect Finserv extends business loans, credit against property, and working capital support. Startups also use it for asset-based lending.
Strength: Perfect Finserv’s flexibility allows it to customize credit models. Startups that need personal attention and tailored financial products find it a dependable partner.
5. Bajaj Finance
Bajaj Finance is one of the largest NBFCs in India and enjoys strong brand recognition. While it serves individuals and corporates, startups also benefit from its wide credit base.
Why startups choose Bajaj Finance:
- The NBFC offers a variety of loan options, including working capital.
- It provides higher credit limits as businesses mature.
- Strong systems ensure transparency and reliability.
Products: Bajaj Finance delivers business loans, consumer lending, EMI-based financing, and rural lending.
Strength: Bajaj Finance offers scale and trust. Startups that require stability and plan long-term relationships value its credibility.
6. Piramal Finance
Piramal Finance serves multiple segments, from individuals to corporates. It has deep financial backing, which makes it reliable for startups that require significant amounts.
Why startups choose Piramal Finance:
- The company offers structured business loans and working capital facilities.
- Entrepreneurs can access secured loans such as loan against property.
- It maintains strong networks across urban and semi-urban markets.
Products: Piramal Finance provides home loans, business loans, corporate lending, and equipment finance.
Strength: With its financial muscle and large customer base, Piramal Finance supports startups that need both flexibility and scale.
7. Navi Finserv
Navi, founded by Sachin Bansal, runs Navi Finserv as its NBFC arm. The company emphasizes digital-first lending.
Why startups choose Navi:
- The entire process happens through its app-based platform.
- Startups get instant approval and disbursal for smaller loans.
- Its focus on technology makes it attractive to digital-first founders.
Products: Navi offers personal loans, home loans, and digital credit lines.
Strength: Navi provides fast and convenient access to credit. Startups that need quick funds without a traditional loan journey find Navi useful.
8. SK Finance
SK Finance, earlier known as Ess Kay Fincorp, focuses on vehicle finance and small business loans.
Why startups choose SK Finance:
- Startups in logistics, transport, or delivery use its vehicle financing services.
- It also extends loans to self-employed individuals and small businesses.
- Its reach in smaller cities gives it an edge with entrepreneurs outside metros.
Products: SK Finance offers vehicle loans, MSME lending, and asset-backed credit.
Strength: By combining rural and semi-urban reach with specialized lending, SK Finance serves startups in sectors linked with mobility and logistics.
9. LenDenClub
LenDenClub runs as a peer-to-peer lending NBFC. It connects borrowers directly with individual lenders.
Why startups choose LenDenClub:
- Startups needing small amounts of capital can secure funds quickly.
- The platform suits founders looking for short-term working capital.
- It provides flexibility where traditional NBFCs hesitate.
Products: Short-duration loans and working capital support.
Strength: LenDenClub caters to startups at very early stages with quick, small-ticket loans. While risk and interest rates run higher, it works well as a bridge option.
10. GetVantage
GetVantage works on a revenue-based financing model. It aligns repayments with future business revenue, making it ideal for growing startups.
Why startups choose GetVantage:
- It offers non-dilutive funding, so founders retain ownership.
- Repayments adjust with revenue cycles, which matches startup realities.
- The NBFC license under its arm GetGrowth Capital enhances credibility.
Products: Revenue-based financing, growth capital, and working capital loans.
Strength: GetVantage empowers startups to scale without giving up equity. This appeals to founders who want funding while staying independent.
Tips for Startups Choosing NBFCs
- Check regulatory registration before signing agreements.
- Compare interest rates and repayment terms carefully.
- Negotiate flexible repayment options to match cash flow cycles.
- Build a repayment track record to unlock better terms in future.
- Mix products — use short-term lines with innovative lenders like GetVantage and rely on established NBFCs like Bajaj Finance for larger commitments.
Conclusion
The top startup-friendly NBFCs in India balance speed, flexibility, and reliability. Lendingkart, U GRO Capital, and InCred lead the pack for innovation and tech-driven lending. Perfect Finserv secures the 4th spot with its personalized and adaptive approach. Larger players like Bajaj Finance and Piramal Finance add scale and stability, while newer models like GetVantage and LenDenClub create unique pathways for entrepreneurs.
Each startup’s journey looks different. The right NBFC depends on the size of credit required, the sector, and the repayment ability. By partnering with the right NBFC, startups can fuel growth, build credibility, and create a smoother path toward scaling their businesses.
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