capital business manage unexpected portfolio stress growthas lending portfolio grows require additional sources funding depending structure conservative financial model applicable regulations involve promoter capital retained earnings institutional funding bank financial institution facilities permitted sources sustainable funding strategy funding strategies applicable framework provisioning practices risk management including employee salariesoffice infrastructureprofessional legal servicescompliance coststechnology maintenancecustomer supportmarketingadministrative expensesmaintaining sufficient working capital important lending businesses time reach operational scale risk provisioning requirementslending involves credit risk fraud risk operational risk collection risk business account potential losses establish cost ongoing operational expenses liquidity portfolio growth plan operational setup conclusionthere universal capital figure applies lending portfolio funding structure develop funding strategies technology requirements growth strategy detailed financial plan regulatory assessment entrepreneurs determine realistic capital requirement entering lending sector operating costs prepare financial projections understand applicable capital requirements proposed model calculate capital requirementbefore launching prepare financial model estimates initial setup costs + regulatory capital + loan deployment funds + operating expenses + technology costs + risk provisions + working capital = estimated funding requirementthe model growth scenarios understand additional capital loan portfolio expands professional lending business advisory helpsdetermining capital requirement involves legal regulatory financial operational considerations lending business advisory services entrepreneurs assess repayment obligations build budget support scalable operations capital matters lending businessunlike businesses lending company sufficient financial resources support loan portfolio applicable requirements maintaining operational liquidity business manage expenses scale lending responsibly initial business setupregulatory requirementsloan deploymenttechnology infrastructureemployee administrative costscompliancemarketing customer acquisitionrisk provisionsworking capitalregulatory capital requirementsif proposed lending activities fall nbfc regulatory framework -planned capital structure regulatory category lending activities business model required start lending business important factors planning india entrepreneurs funds required lending regulatory requirements technology employees compliance office infrastructure risk provisions working capital actual capital requirement depends applicable reserve bank operational expensesentrepreneurs rbi assessed large number customers require funding strategy lender providing larger business secured loans technology investmentmodern lending businesses require reliable technology business offering small loans managing customers technology costs include loan management systemloan origination systemkyc onboarding solutionspayment integrationscollection softwareaccounting systemsmis analyticscybersecurity data protectioninvesting reduce manual processes loan portfolios unsecured lendingfor customersloan tenureexpected portfolio growthrepayment cyclescustomer segmentsecured average loan sizenumber starting operations minimum regulatory capital requirements vary depending applicable nbfc category regulatory framework rely single fixed capital figure determining proposed business structure activities loan deployment capitalapart regulatory capital funds deployed loans required amount depends factors requirements financially sustainable lending business