NBFCs (Non-Banking Financial Companies) have emerged as a better alternative to Banks, for loans, including Business Loans, because of their innovative products, quicker Turn Around Time, higher Risk taking capabilities (because of better risk assessment and credit assessment systems), and better understanding of the segment in which they specialize. This fact is well understood by the policy makers at Banks as well, which is why Banks are more willing to lend to NBFCs, for onward lending to segments untouched by Banks. NBFCs have now, backed by the funding from Banks, become strong enough to challenge the Banks’ bread and butter areas - MSME lending, and Housing Loans and other personal loans. GROWTH IN BANK CREDIT The year-on-year growth in the Bank Credit, as on 22 nd December 2017 was 10.70% as compared to 4.70% in the last year. The growth can largely be the effect of the following: 1.        Post demonetization, Banks had surplus deposits for investment and providi