am frm bom india i intend to start a finance company gvng prsnl loan wht licnce do i nd n frm whm hw do i go?

Question

am intending to start an financial company where i wud b giving personal loan at the rate lower thn the bank wht i wud like 2 knw is wht permisssion do i ve 2 apply for n wht guidelines i need to follow is it ok if i start a proprieter firm as xyz financial n just start my business n file my returns annually........yr help wud b highly appreciated thank you very much

i ntend to start this in bombay. loans will b gvn to individuals maximum amnt wud be a lac per prsn n the instlmnt wud b deducted frm their salary either by the bank directly or by the finance dept of the company the borrower is wrkng i wud b taking a letter frm the borrower gvng me the authority 2 do same. i wud b charging the borrower an intrest of 12% per annum plus documentation chrgs of 1%

Answer 1

If you are a serious businessman and really mean what you have put in your question above, you must hire the services of an appropriate professional for the purpose. There is a lot to do, comply and honour - in this business.

To begin with, you need to have a registered NBFC with ROC and RBI......to carry on your this kind of business legitimately..

Answer 2

First, I would stop using the internet shorthand. Words like "wud" instead of "would" turn people off to you professionally. Use real words, not numbers (2=to)

Next, if you are starting such a company, I suggest you get an accountant to help. They would know more about the rules and can get your started more easily than someone from another country on the internet.

Good luck in your new business.

Answer 3

all nbfc's [non-banking finance companies] have to be registered with the Reserve bank of India. Best it to go to the RBI web site and get more info. If you are planning larger scale operations you need to incorporate a company.

Answer 4

Where is your company going to be located? In India? On the Internet? In the US? Laws and regulations vary depending on where you are and what exactly you want to do. For instance, are you goin to offer loans only to individuals or to businesses or to governments? Are you going to require collateral?