Usha Financial Services Limited is a non-banking finance company (“NBFC”) incorporated in the year 1995 registered with the Reserve Bank of India as a NBFC-ICC (Investment & Credit) - base layer- non-systemically important non-deposit taking NBFC with over 9 years of lending experience. They provide lending solutions to fellow NBFCs and corporates, MSMEs, and individual, particularly to women entrepreneurs. Their services also extend to Electric vehicle (EV) financing. They provide a diversified range of financial products to individuals, body corporates, NBFCs and MSMEs. 

THEIR KEY BORROWERS: 
I. NBFCs and other body corporates 
II. MSMEs and Small business owners 
III. Individuals

Further, the company has established partnerships with multiple NBFCs and other companies to act as facilitators and accelerators, allowing them to provide loan services to MSMEs across various states nationwide. These agreements are customized to mutual terms and conditions, expanding their service to different locations and states. They have established business partnerships across multiple states with 13 (thirteen) business partners.

At present, the Company have 43 employees in the company. The Bankers of the Usha Financial Services Limited are HDFC Bank Limited and State Bank of India.

OVERVIEW OF THE NBFC SECTOR'S CURRENT STATE
As of 2024, the Non-Banking Financial Companies (NBFCs) sector in India remains a pivotal component of the financial landscape, demonstrating significant growth despite global economic uncertainties. The sector has continued to expand, capitalizing on digital innovations and a broadening customer base. With a recorded yearon-year growth rate of 25.8% in August 2024, NBFCs have significantly outpaced many other sectors of the Indian economy.

INTRODUCTION TO NON-BANKING FINANCIAL COMPANIES (NBFCS)
Non-Banking Financial Companies (NBFCs) are financial entities that operate without a banking license yet perform functions similar to banks. They are crucial in offering credit and other financial services, especially in regions and sectors not sufficiently served by traditional banks. NBFCs are regulated by the Reserve Bank of India, although they do not offer checking facilities or demand deposits.

The Non-Banking Financial Companies (NBFCs) sector in India has seen substantial growth over recent years, which is evident from the expansion in their assets and market presence. From FY 2021 to FY 2026, the NBFC sector is projected to grow at a compound annual growth rate (CAGR) of approximately 18.5%, driven by a combination of factors including increased demand for credit, governmental financial inclusion initiatives, and widespread digitalization. 

In more specific terms, as of the financial year ending in 2023, the NBFC sector witnessed significant growth in their assets under management (AUM), with an expected increase in their annual growth rate by about 13-14% compared to the single-digit growth observed in the previous years from 2020 to 2022 (India Brand Equity Foundation). This acceleration indicates a robust recovery and an optimistic outlook for the sector, primarily fuelled by improving economic activities and stronger balance sheet conditions. 

Moreover, NBFCs have also been instrumental in diversifying their service offerings and expanding into niche markets. This includes increasing their footprint in sectors such as microfinance, personal loans, and auto finance, which have shown vibrant growth and are crucial in supporting various other economic sectors including housing, consumer goods, and transportation. 

This statistical growth is not only a reflection of the NBFCs' ability to adapt to the dynamic financial landscape of India but also showcases their pivotal role in fostering financial inclusion and supporting the broader economic infrastructure of the country.

MARKET OVERVIEW OF NBFCS IN INDIA
As of 2023, the Non-Banking Financial Companies (NBFC) sector in India has reached an impressive market size of USD 326 billion, underscoring its expansive influence within the financial landscape. This growth highlights the sector's robust performance and strategic importance, driven by various factors such as increasing digital penetration, favourable government policies, and innovative service delivery to underserved regions. Such specific figures demonstrate the significant role NBFCs play in the broader economic framework and validate the projected compound annual growth rate (CAGR) of 13-15% between 2023 and 2025.

This integration of precise market size data not only substantiates the growth narrative but also aligns with industry-reported statistics to strengthen the overall impact and trustworthiness of your report. 

The market size of NBFCs in India has experienced robust growth. From 2021 to 2023, the sector saw significant increases in its assets and customer base. As of 2023, the assets under management (AUM) of NBFCs are estimated to have grown substantially.

This overview encapsulates the dynamic and rapidly expanding landscape of NBFCs in India, underpinned by technological advancements, supportive governmental frameworks, and shifting consumer preferences.

USHA FINANCIAL SERVICES LIMITED COMPETITIVE STRENGTHS
1. Experienced and Qualified management team
2. Their Business partnership/ Correspondent’s arrangements
3. Robust underwriting process and risk management policies

USHA FINANCIAL SERVICES LIMITED STRATEGIES
1. Leverage Technology to Grow their Business
2. Expansion of their Loan Portfolio

USHA FINANCIAL SERVICES LIMITED RISK FACTORS & CONCERNS
1. Their top two states contribute the major revenue i.e. Delhi and West Bengal.
2. They are subjected to supervision and regulation by the RBI as a non-systemically important NBFC, and changes in RBI’s regulations governing them could adversely affect the business.
3. Their marketing and advertising activities may not be successful in increasing the popularity of the Company among customers.
4. Any deterioration in the credit quality of their loans could adversely affect the business, results of operations, financial condition and cash flows.
5. They are required to comply with guidelines issued by regulatory authorities in India, which are evolving and may increase the compliance costs and subject them to penalties.

Usha Financial Services Limited is a non-banking finance company (“NBFC”) incorporated in the year 1995 registered with the Reserve Bank of India as a NBFC-ICC (Investment & Credit) - base layer- non-systemically important non-deposit taking NBFC with over 9 years of lending experience. They provide lending solutions to fellow NBFCs and corporates, MSMEs, and individual, particularly to women entrepreneurs. Their services also extend to Electric vehicle (EV) financing. They provide a diversified range of financial products to individuals, body corporates, NBFCs and MSMEs. 

THEIR KEY BORROWERS: 
I. NBFCs and other body corporates 
II. MSMEs and Small business owners 
III. Individuals

Further, the company has established partnerships with multiple NBFCs and other companies to act as facilitators and accelerators, allowing them to provide loan services to MSMEs across various states nationwide. These agreements are customized to mutual terms and conditions, expanding their service to different locations and states. They have established business partnerships across multiple states with 13 (thirteen) business partners.

At present, the Company have 43 employees in the company. The Bankers of the Usha Financial Services Limited are HDFC Bank Limited and State Bank of India.

OVERVIEW OF THE NBFC SECTOR'S CURRENT STATE
As of 2024, the Non-Banking Financial Companies (NBFCs) sector in India remains a pivotal component of the financial landscape, demonstrating significant growth despite global economic uncertainties. The sector has continued to expand, capitalizing on digital innovations and a broadening customer base. With a recorded yearon-year growth rate of 25.8% in August 2024, NBFCs have significantly outpaced many other sectors of the Indian economy.

INTRODUCTION TO NON-BANKING FINANCIAL COMPANIES (NBFCS)
Non-Banking Financial Companies (NBFCs) are financial entities that operate without a banking license yet perform functions similar to banks. They are crucial in offering credit and other financial services, especially in regions and sectors not sufficiently served by traditional banks. NBFCs are regulated by the Reserve Bank of India, although they do not offer checking facilities or demand deposits.

The Non-Banking Financial Companies (NBFCs) sector in India has seen substantial growth over recent years, which is evident from the expansion in their assets and market presence. From FY 2021 to FY 2026, the NBFC sector is projected to grow at a compound annual growth rate (CAGR) of approximately 18.5%, driven by a combination of factors including increased demand for credit, governmental financial inclusion initiatives, and widespread digitalization. 

In more specific terms, as of the financial year ending in 2023, the NBFC sector witnessed significant growth in their assets under management (AUM), with an expected increase in their annual growth rate by about 13-14% compared to the single-digit growth observed in the previous years from 2020 to 2022 (India Brand Equity Foundation). This acceleration indicates a robust recovery and an optimistic outlook for the sector, primarily fuelled by improving economic activities and stronger balance sheet conditions. 

Moreover, NBFCs have also been instrumental in diversifying their service offerings and expanding into niche markets. This includes increasing their footprint in sectors such as microfinance, personal loans, and auto finance, which have shown vibrant growth and are crucial in supporting various other economic sectors including housing, consumer goods, and transportation. 

This statistical growth is not only a reflection of the NBFCs' ability to adapt to the dynamic financial landscape of India but also showcases their pivotal role in fostering financial inclusion and supporting the broader economic infrastructure of the country.

MARKET OVERVIEW OF NBFCS IN INDIA
As of 2023, the Non-Banking Financial Companies (NBFC) sector in India has reached an impressive market size of USD 326 billion, underscoring its expansive influence within the financial landscape. This growth highlights the sector's robust performance and strategic importance, driven by various factors such as increasing digital penetration, favourable government policies, and innovative service delivery to underserved regions. Such specific figures demonstrate the significant role NBFCs play in the broader economic framework and validate the projected compound annual growth rate (CAGR) of 13-15% between 2023 and 2025.

This integration of precise market size data not only substantiates the growth narrative but also aligns with industry-reported statistics to strengthen the overall impact and trustworthiness of your report. 

The market size of NBFCs in India has experienced robust growth. From 2021 to 2023, the sector saw significant increases in its assets and customer base. As of 2023, the assets under management (AUM) of NBFCs are estimated to have grown substantially.

This overview encapsulates the dynamic and rapidly expanding landscape of NBFCs in India, underpinned by technological advancements, supportive governmental frameworks, and shifting consumer preferences.

USHA FINANCIAL SERVICES LIMITED COMPETITIVE STRENGTHS
1. Experienced and Qualified management team
2. Their Business partnership/ Correspondent’s arrangements
3. Robust underwriting process and risk management policies

USHA FINANCIAL SERVICES LIMITED STRATEGIES
1. Leverage Technology to Grow their Business
2. Expansion of their Loan Portfolio

USHA FINANCIAL SERVICES LIMITED RISK FACTORS & CONCERNS
1. Their top two states contribute the major revenue i.e. Delhi and West Bengal.
2. They are subjected to supervision and regulation by the RBI as a non-systemically important NBFC, and changes in RBI’s regulations governing them could adversely affect the business.
3. Their marketing and advertising activities may not be successful in increasing the popularity of the Company among customers.
4. Any deterioration in the credit quality of their loans could adversely affect the business, results of operations, financial condition and cash flows.
5. They are required to comply with guidelines issued by regulatory authorities in India, which are evolving and may increase the compliance costs and subject them to penalties.