Abstract—Non-banking financial companies (NBFCs) form
an integral part of the Indian financial system. The history of
the NBFC Industry in India is a story of under-regulation
followed by over-regulation. Policy makers have swung from
one extreme position to another in their attempt to set controls
and then restrain them so that they do not curb the growth of
the industry. This report covers the industry. Most of this
NBFCs’ are operating with high risk of lending and more often
NBFCs’ lend credit to Small and Medium size enterprises,
which are categorized as high risk class of Assets. To assess such
high risk assets we need to have a comprehensive model. This
paper aim is to build Risk Assessment Model for NBFCs’ based
on both qualitative and quantitative aspects of the client.
Index Terms—NBFC, Asset Financing, Risk, Credit Rating.
School of Management Dr. V.Manickavasagam Alagappa University.
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Cite:Srinivas Gumparthi SSn, "Risk Assessment Model for Assessing NBFCs’(Asset Financing) Customers," International Journal of Trade, Economics and Finance vol.1, no.1, pp. 121-130, 2010.