Types of Credit / Loans
Banks and NBFCs (Non-Banking Financial Companies)
- Structured Lending Institutions: 2 types of banking licenses – the Universal Banking License and the Differentiated Banking License.
- Public Sector Banks: 50% more government - owned entities. e.g. SBI, PNB etc.
- Private Sector Banks: Run by the private sector, competitive and flexible. e.g. HDFC. ICICI
- Small Finance Banks: carry out all banking activity except of credit cards. e.g. Ujjivan, AU small finance, Jana Small Finance
- Payment Banks: like Small finance banks provide small savings accounts facilities and payment/remittance services. Cannot accept deposits more than Rs. 1 lac / customer. e.g. PayTM etc.
- Cooperative Banks: Function like normal banks, High FD rates, e.g. JPCB, Saraswat, Cosmos, Shamrao Vithal etc.
- Regional Rural Banks: (RRBs) 50% Govt., 35% by Sponsor bank and 15% state government. Primary purpose rural areas into the banking. e.g. Punjab Gramin Bank,