Non-banking financial institutions have specialized services, a broader reach, sophisticated risk management frameworks, a diverse variety of co-lending arrangements, and a strong digital presence, all of which have aided their credit facility acceptance in India. Continue reading to see why borrowers choose loans from non-bank financial institutions (NBFCs).
Why is a personal loan from a non-bank financial institution (NBFC) a better option?
1. An essential eligible criteria
Personal loans from non-bank financial institutions (NBFCs) do not need you to fulfill lengthy or demanding standards. Your credit score is the most important factor that these lenders examine. You may be able to gain clearance fast if you have a CIBIL score of 750. Even if you have an average credit rating, you may still apply if you have a decent income and a strong work history.
On the other hand, banks continue to place strict eligibility restrictions on applicants, especially those who are self-employed.
2. Paperwork is either non-existent or minor
When applying for an nbfc personal loan, current or pre-approved customers do not need to provide any documentation. Only OVDs for KYC, bank account statements, and the most recent pay stubs are required for new users.
Customers, both old and new, may be asked to produce a substantial quantity of documents while working with banks. These lenders often request additional records from self-employed individuals.
3. Prompt approval
Customers who have been pre-approved for an NBFC personal loan may get loan approval a few minutes after submitting their application. In some instances, reputable NBFCs may be able to provide an unsecured loan in as little as 5 minutes.
Before approving an application, banks, on the other hand, frequently go through other internal processes.
4. The processing speed
After gaining permission, NBFCs may process an application within one working day. Borrowers using non-banking financial institutions may get funds in as short as 24 hours. Consequently, NBFC loans are a great way to cover unexpected expenses like medical bills.
A personal loan from a bank may take anything from a few days to a few weeks to be disbursed.
5. The application is completed entirely online
There is a paperless and digital application procedure accessible. You need to enter basic information like your name, phone number, and city to get started.
On the other hand, some banks still do not provide an online loan application alternative. Borrowers must submit their applications in person at a branch, making the process more onerous.
6. Outstanding client service
Finally, NBFCs give clients dependable client service. These lenders often appoint a customer relationship manager to provide counseling to borrowers before and after applying for or getting an nbfc personal loan.
Bank services, on the other hand, especially those in the public sector, remain less customer-centric.
Obtaining a loan from a non-bank financial institution (NBFC) is typically considered the superior alternative for all of these reasons. An NBFC may be able to supply you with a higher-value immediate loan (depending on your eligibility) than a bank (depending on eligibility). You can apply for an nbfc personal loan after reading this article.
So you’ve looked at all of the non-bank financial companies that may be able to provide you with a low-interest nbfc personal loan. You’re standing in front of ten non-banking financial institutions, and you have the option of applying for an nbfc personal loan from any of them. You may transfer the balance of a loan to one of these NBFCs and save money on interest. On the other side, the extended repayment time lowers your EMI, making your monthly EMIs easier to handle.