Natural computing, inspired by biological course of action, is an interdisciplinary field that formalizes processes observed in living organisms to design computational methods for solving complex problems, or designing artificial systems with more natural behaviour. Based on the tasks abstracted from natural phenomena, such as brain modelling, self-organization, self-repetition, self evaluation, Darwinian survival, granulation and perception, nature serves as a source of inspiration for the development of computational tools or systems that are used for solving complex problems. Nature inspired main computing paradigms used for such development include artificial neural networks, fuzzy logic, rough sets, evolutionary algorithms, fractal geometry, DNA computing, artificial life and granular or perception-based computing. Information granulation in granular computing is an inherent characteristic of human thinking and reasoning process performed in everyday life. The present article provides an overview of the significance of natural computing with respect to the granulation-based information processing models, such as neural networks, fuzzy sets and rough sets, and their hybridization. We emphasize on the biological motivation, design principles, application areas, open research problems and challenging issues of these models.