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Asset Finance Company (AFC)
An Asset Finance Company is a Non-banking Financial company.
What is a "Asset Finance Company"? - meaning & definition
An Asset Finance Company is a company which is a financial institution
engaged in the principal business of financing of physical assets
supporting productive / economic activity, such as automobiles, tractors, lathe
machines, generator sets, earth moving and material handling equipments, moving
on own power and general purpose industrial machines.
What is principal business?
Principal business for this purpose is defined as aggregate of financing
real/physical assets supporting economic activity and income arising therefrom
is not less than 60% of its total assets and total income respectively.
What is asset financing?
Asset financing generally means getting a credit by using one or more assets as security for availing that credit.