Top 10 Small Finance Banks in India

Small Finance Banks (SFBs) are regular banks, but smaller in size and bigger in purpose. They help people who don’t earn much, live in small towns or villages, and can’t get loans from big banks. Whether you're looking to save money, grow your fixed deposits, or invest in banking stocks, knowing the top 10 small finance banks in India can help you make smart choices.

What is a Small Finance Bank?

Imagine you’re a tea seller earning ₹500/day. A big bank might ignore you. But an SFB? That’s built just for people like you. In Simple words, SFBs are mini-banks that:

Offer savings accounts and fixed deposits
Give small loans to small businesses, farmers, and workers
Work mostly in small towns and rural areas

They’re registered as public companies under the Companies Act 2013 and follow RBI and SEBI rules.

List of Top 10 Small Finance Banks

Suryoday Small Finance Bank
Shivalik Small Finance Bank Limited.
Jana Small Finance Bank.
Bandhan Financial Services Limited.
Capital Small Finance Bank.
AU Small Finance Bank.
Fincare Small Finance Bank.
Utkarsh Microfinance Private Ltd.
Ujjwal Small Finance Bank
Equitas Small Finance Bank.

Suryoday Small Finance Bank

The bank offers a variety of products. This bank serves more than 30 lakh customers. It operates in 15 states. The bank employs over 7,700 people. Its goal is to provide personalized assistance, understand customer perspectives, and protect customers from fraud.

Quick Review:

Earn more on savings and FDs.
Where: Works in 15 states
Customers: Over 30 lakh
Best For: High FD returns (9.10% for seniors)

Services:

Savings & current accounts
Fixed deposits
Small personal loans
Online & mobile banking

Shivalik Small Finance Bank Limited

The key advantage of Shivalik Small Finance Bank is its focus on small business loans. Customers can take out small loans and repay them accordingly. It is registered with the DICGC. Customers can open fixed deposits (FDs) for both the short and long term.

Quick Review:

Good for small loans and fixed deposits.
Best For: Small business loans
Extra Safety: Registered with DICGC (your money is insured)

Services:

FDs (short & long term)
Loans for local businesses
Net banking & mobile app

Jana Small Finance Bank

Headquartered in Bengaluru, it operates under the regulations of the Reserve Bank of India (RBI). Customers can avail themselves of both gold and home loans. It has approximately 278 branches in rural areas. It has more than 12 million customers.

Quick Review:

Lots of branches in rural areas
Head Office: Bengaluru
Branches: 270+, mostly in small towns
Customers: Over 1 crore

Services:

Gold loans
Home loans
Savings & business accounts

Bandhan Financial Services Limited

Founded on August 3, 1995, the bank manages investments. It also has a subsidiary of BFSL. As it follows corporate governance principles. It also provides detailed results and reports and manages unpaid and unclaimed dividends. It also displays its shareholding pattern.

Quick Review:

Started small, now a big player.
Started: 1995, became a full bank in 2015
Now: Acts like a full, regular bank

Services:

Savings, current accounts
Business loans
Investment management
Shareholder updates (good for stock investors)

Capital Small Finance Bank

It provides innovative banking solutions and also offers loan insurance to customers. As it effectively manages customer portfolios. It has a consistent track record of growth.

Quick Review:

The oldest small finance bank in India.
Based In: Punjab
Good For: Local trust, personal service

Services:

Loans with insurance
Savings & FDs
Digital banking

AU Small Finance Bank

The benefit of AU Small Finance is that it offers Video Banking Services. Customers can resolve their queries on video calls. For businessmen, business banking services are available. It has a total of 2,383 branches across India. Customers can also avail themselves of mobile banking and internet banking.

Quick Review:

Digital, stock-listed, full-service.
Head Office: Jaipur
Branches: 2,300+

Services:

Video banking (get help on video call)
Business banking
Savings, FDs, credit cards
Mobile & net banking

Fincare Small Finance Bank

For child education, it offers a child education program. It also has a banking app that allows people to manage their accounts conveniently. Products are savings accounts, deposits, loans, and others.

Quick Review:

Best for mobile banking and education support”
Best For: Tech-savvy users in small towns

Services:

Child education savings plans
Regular banking services (accounts, loans, deposits)
Banking app

Utkarsh Small Finance Bank

Utkarsh Small Finance Bank offers banking services such as loans, accounts, deposits, and investments. Also provides online banking services through which people can add money to their accounts. Customers can easily make online transactions.

Quick Review:

Smooth online banking and simple accounts.
Offer online banking services.

Services:

Personal and business loans
Savings and fixed deposits
Easy online money transfers
Simple net banking

Ujjivan Small Finance Bank

Started operations on February 1, 2017, based in Bengaluru. Comes from Ujjivan Financial Services, holding approximately 80% stake. Became a Scheduled Bank in August 2017. Operates in 26 Indian states/UTs with around 752 branches. Serves nearly 9.5 million customers and employs over 28,000 people.

Quick Review:

Personal loans and great customer service
Where? Big in rural areas
Stock Market: You can buy shares (listed company)

Services:

Personal and group loans
Savings and FDs
Net banking, mobile app

Equitas Small Finance Bank

This financial bank provides loans to people in rural areas at a low interest rate. The main office is in Chennai. Specifically, it offers personal loans.

Quick Review:

“Mobile-first and investor-friendly”
Based In: Chennai
Listed on: NSE & BSE (good for stock investors)

Services:

Car, home, and personal loans
Easy online account opening
Good mobile app
High savings interest

Pros & Cons of Small Finance Bank

Pros of Small Finance Banks:

Higher Interest Rates: You can earn more on savings and fixed deposits compared to big banks.
Easy Small Loans: Perfect for shopkeepers, farmers, and small business owners who need quick, low-amount loans.
Better Service, Less Rush: Smaller branches mean fewer crowds and more personal attention.

Cons of Small Finance Banks:

Limited Branches and ATMs: Not available in every city or town like SBI or ICICI.
Less Brand Recognition: Still not as popular or trusted as big names like HDFC or Axis.
Trust Still Growing: Many people are still unsure because these banks are relatively new.

Conclusion

In conclusion, Small Finance Banks may be small in size, but they make a big impact. Whether you're a small business owner, a senior citizen looking for high FD returns, or just someone wanting a simple bank account, SFBs are a smart choice. They’re helping India grow from the roots. It’s time we gave them a serious look.