Equirus Group gets RBI Nod to Launch NBFC; Targets Rs 3,000 Cr Loan Book

Financial services firm Equirus Group has received approval from the Reserve Bank of India (RBI) to launch its non-deposit-taking non-banking financial company (NBFC) Equirus Finance. The firm, which is into wealth management, investment banking, and institutional equities businesses, will provide Loan Against Securities (LAS), ESOP financing, Market-Linked Debentures (MLDs), structured finance, and other customised secured lending solutions through its new NBFC.

The solutions will be tailored to the needs of high-net-worth individuals (HNIs), family offices, and corporate promoters across both its wealth and investment banking platforms, the company said, with over $2.2 billion worth of assets under management (AUM).

“This integration aligns perfectly with our vision of creating a unified “One Equirus” experience for our clients, whereby the platform provides the capability of expert advisory insights backed by funding capabilities,” said Amit Arora, COO & Managing Director, Equirus.

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As a wealth-focused NBFC, Equirus Finance will offer high-value credit products alongside investment advisory and portfolio management. The NBFC aims to build a loan book of over Rs 3,000 crore in the coming years. Unlike mass-market NBFCs, Equirus Finance said it will adopt a niche, relationship-driven approach, supported by a lean and expert-led team.

The announcement comes a day after the central bank issued revised guidelines tightening the co-lending framework between banks and NBFCs. Now, each regulated entity under a co-lending arrangement will be required to retain a minimum 10 per cent share of the individual loans in its books.

Moreover, the originating entity or lender may provide a default loss guarantee up to 5 per cent of loans outstanding in respect of loans under the co-lending arrangement. The arrangement also needs to ensure that the respective shares of the lenders are reflected in their books without delay after disbursement by the originating lender to the borrower, in any case not later than 15 calendar days from the date of disbursement.

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Importantly, the rising demand in India's retail credit market has opened new opportunities for NBFCs to expand their investor base, according to a recent report by Crisil Intelligence, ANI reported on Wednesday.

With more retail borrowers coming into the fold, NBFCs have the chance to diversify funding sources and attract new categories of investors, it said.

As of FY25, the total retail credit in India stood at Rs 82 trillion, reflecting a strong CAGR of 15.1 per cent between FY19 and FY25. In FY25 alone, retail credit grew by 14 per cent, backed by consistent demand in key asset segments like housing and auto, the report noted.

Additionally, the consumption-led surge in credit card usage and personal loan demand also played a significant role in this growth.