How an NBFC is structured

Org chart

The branch branch is shown in depth, from the business head to a branch manager and the sales and collections team. Credit, operations, compliance, IT, HR and finance are drawn one level down. Regional managers sit between the business head and branches in larger NBFCs.

Levels and designations

Approval chains

How the structure works

The business runs through branches, but control functions keep it honest. A business head owns lending targets across branches, each led by a branch manager with relationship managers and sales officers who source loans and collections staff who recover instalments. Credit and risk decide whether a loan is approved, and they report separately from sales so targets do not bend credit rules. Operations processes disbursements, documents and repayments. Compliance tracks RBI norms, KYC and audits. IT runs the lending system, and finance manages funds and treasury. This separation of business from credit, risk and compliance is the heart of the structure.

How it changes with size

A small NBFC may run a few branches with a business head, a credit manager and a shared operations desk. A mid-sized lender builds a branch network, regional business managers over clusters, and full credit, risk, operations and compliance functions. A large NBFC adds product verticals such as vehicle, gold or business loans, each with its own head, a central underwriting hub, and a dedicated internal audit team. As the lender grows, the wall between the business line and the control functions gets taller, because regulators expect independent credit, risk and compliance.

Common problems

Field-heavy roles are the structural challenge. Sales officers and collections staff spend the day out with customers, so attendance is taken on a phone, not at a desk. Sales targets can clash with careful credit, which is why credit must stay independent. Branch staff handle cash and sensitive customer data, so access must be controlled by role. Attrition among sales and collections staff is high, and month-end brings collection pushes with long hours. The steady fixes are app-based attendance for field staff, role-based access to salary and customer fields, and one branch manager as reporting manager per officer.

• App-based attendance for sales and collections staff in the field
• Credit and risk kept independent of sales targets
• Role-based access to salary, bank and customer fields
• One branch manager as reporting manager per officer

Set up this structure in ZeniaHR

1. Add each branch as a branch record, and create departments like Sales, Credit, Risk, Operations, Compliance, IT, HR and Finance so staff group by function.
2. Create designations such as Sales Officer, Relationship Manager, Collections Executive, Credit Manager and Branch Manager, and use grades to hold pay bands.
3. Give every officer a reporting manager, usually the branch manager, and an HR partner, so leave and corrections route to the right person.
4. Use access control with data scope per role and field masking, so branch staff see only what their role needs of salary, bank and contact fields.
5. Set up mobile app punches with check-in spots for sales and collections staff who work in the field, and set grace and correction rules for branch staff.
6. Keep leave, corrections and overtime on the reporting manager then HR route, and add the business head as a hiring approver above branch managers.

Frequently asked questions