Why do people, organizations, and companies decide to borrow money from lenders? All of this is due to the fact that we require money in all circumstances. When lending money to individuals, lenders typically require a number of assurances, but occasionally trust is the only factor that matters.
Any loan is made up of 3 main components: the principal or the loan amount, the interest rate (and hence interest amount), and the payback period. NBFCs and banks prove to be the most reliable lenders as they are dependable and are bound by certain government policies.
Today, many NBFCs give out Personal Loans, but it is important to learn the intricacies of such loans before choosing one. You can also get NBFC Personal Loan for bad credit if you understand the procedure and Personal Loan rules and regulations in India.
Till a couple of decades ago, banks and individual moneylenders were all you had when you wanted a loan. Things have changed significantly with the entry of NBFCs. As a borrower, you might be confused as to which type of financial institution is best for you to apply for a Personal Loan. Should one take a Personal Loan from a private bank or a public sector bank? What about NBFCs? What about a fintech?
What is a Bank?
The banking industry leads the way in finance, including cash and loans. Banks are the institutional structures that take deposits and issue loans to individuals, they play an important role in the financial condition of the state. In India, the Reserve Bank of India (RBI) is the Indian banking regulator.
What is NBFC?
A Non-Banking Financial Company (NBFC) is not a bank, but it performs certain monetary functions like banks such as providing loans, credit facilities, investments, other schemes, and so on. NBFCs also provide services to businesses such as the acquisition of shares, stocks, debentures, bonds, and securities issued by the government.
It also enables the services such as hire purchase, leasing, venture capital financing, housing financing and insurance. Get an NBFC loan apply now.
Also Read:- Here’s How To Get A Rs 25 Lakh Personal Loan With NBFCs
Benefits of Taking Personal Loan From NBFCs
As a borrower, you have several advantages of taking a Personal Loan from an NBFC as compared to a bank.
Fast Processing
Most banks are bound by legacy procedures, rules, regulations, and guidelines laid down by the Reserve Bank of India for assessment. From the moment you apply for a Personal Loan, they follow various rules to assess eligibility, documentation, and creditworthiness and then finally approve and disburse the loan. It can easily take 1-2 weeks to get your money in your account.
NBFCs on the other hand are known for faster loan processing and approvals as they have more room to be flexible with the norms. Generally, an online Credit success Personal Loan can be approved in a matter of minutes if you fulfil all the Personal Loan requirements. You can easily apply for a Personal Loan from any place at any time from the comfort of your home or office.
Credit Score
A borrower with a poor credit score is usually not entertained by banks, and his/her loan application is rejected, which further lowers the credit score. However, these borrowers can get loans from NBFCs subject to certain scrutiny, extra documentation and a higher interest rate.
Customer Service
NBFCs provide better customer service to their customers during and after stages of loan approval and disbursement. Borrowers can view loan status and enable notification on the instalment deadline.
Easy NBFC Personal Loan Eligibility Parameters
The NBFC loan eligibility criteria are as follows
- The minimum age should be at least 22 years at the time of applying for NBFC Finance (varies from lender to lender)
- The maximum age at maturity of the loan should be less than 58 years (varies from lender to lender)
- Salaried employees working with a government organization, private firm or multinational company can apply.
- The applicant may have at least one year of work experience.
- The applicant must be an Indian resident to avail of the NBFC loan.
- The minimum monthly income required for salaried applicants is Rs 20,000, varying slightly from lender to lender.
- Choose What is Right for You
- Both NBFCs and banks offer Personal Loans. While banks are known for their low-interest rates, NBFCs are rapidly reforming by offering competitive rates to individuals. If you need funds quickly and without any difficulty, NBFCs are a good solution.
- Every person’s needs and requirements are different. Some prefer faster loan approval, and some prefer larger loan amounts, while some prefer good customer service. You must choose a lender and product based on your requirements.
Minimal to Nil Paperwork
There is no collateral requirement which reduces the document requirements while applying for a Personal Loan. Compared to other loans, the documentation process for a Personal Loan is simple and faster.
Quick Approval
With online approval and disbursal, a borrower can apply to get quick approval once you meet all the eligibility criteria mentioned on the official website of the lender.
Completely Online Application Process
It is easier for a borrower to apply for a completely online loan application process. You can directly apply for a loan from anywhere and anytime.
FAQs
1.Can NBFC provide a Personal Loan?
Yes, NBFCs (Non-Banking Financial Companies) can provide a Personal Loan to borrowers.
How much loan can I get from NBFC?
Once you match the eligibility criteria set by the NBFCs, you can get a high loan amount of up to Rs. 50 Lakh.
2.How can I get a loan from NBFC?
You can apply for a loan from NBFCs by visiting the official website of the lender. If you are not comfortable with the online loan application, you can visit the official branch of the NBFC and apply for a Personal Loan offline.
3.Which NBFC in India provides personal loans for salaries?
There are various NBFCs that offer Personal Loans for salaries, with varying interest rates, fees and levels of customer service.
4.Is it safe to take a loan from NBFC?
Yes, it is absolutely safe to take a loan from NBFCs. You must ensure to visit a secure website while applying for a loan. Also ensure that the NBFC is genuine.
5.What is an NBFC loan?
Non-Banking Financial Companies (NBFCs) are establishments that provide diverse and customised financial offerings like NBFC loans at favourable terms. They have a well-established presence both online and offline. This makes it easier for people to avail of an NBFC loan to fulfil their specific financial needs without any hassle.
6.Who is eligible for NBFC loan?
The eligibility criteria to apply for an NBFC loan vary among different lenders. The basic requirements include your age, income proof, residential proof, and any other criterion laid out by your chosen lender.
7.What are the types of financing companies that come under NBFC?
The different types of financing companies that can be classified under NBFCs include those that offer loans, asset finance, infrastructure finance, investment, etc.
8.Are NBFCs private or government entities?
As non-banking companies that operate as financial institutions, NBFCs must be registered under the Companies Act 2013 or 1956 as public or private limited companies.
9.Who controls NBFCs?
The regulatory body for NBFCs is the Reserve Bank of India (RBI). These financial institutions are governed as per the RBI Act 1934.
