An Asset finance company which is a financial institution engaged in the principal business of financing of a physical asset or movable assets and other economic activity such as Bus, Car, tractors, lathe machines, generator sets & manufacturing machine. An Assets finance company also provides short-term working capital loan against receivables, inventory i.e. Assets finance company must generate 60% of its revenue from the aggregate of physical assets supporting the economic activity is not less than 60% of its total assets and total income respectively. Assets finance can be either deposit taking NBFC or non-deposit taking NBFC. Assets finance can be registered with RBI with minimum net owned fund Rs. 200 Lakh.
