Why Should You Consider NBFCs For Personal Loan?

Last Updated: 14 Oct 2024

In the oeuvre of finance, traditional banks have long held the spotlight concerning loans, especially personal ones. But in recent years, NBFCs have emerged as a formidable contender, bringing about a revolution in the lending landscape. It offers a plethora of benefits, which makes it a better option for securing personal loans than traditional banks.

This article will unravel all the reasons why a personal loan from NBFC is better option. Does this excite you? Read until the end to unlock financial opportunities tailored to your needs and preferences!

What Is NBFC?

The full form of NBFC is a Non-Banking Financial Company, which represents a financial institution that provides various financial services similar to that of a traditional bank but doesn’t hold a banking license. The financial regulatory authority regulates the operations of these NBFCs in the respective countries.

The financial services offered by NBFCs are of a wide range, which includes business loans, personal loans, asset management, investment banking, insurance, and vehicle financing, among many more. These financial institutions especially attracted the attention of individuals as well as other sectors as they cater to their financial needs and goals.

However, the only limitation that NBFCs entertain is that they are not allowed to accept deposits from the public like traditional banks or issue demand drafts or checks. They are allowed to raise funds through various other means like issuing bonds, debentures, or accepting fixed deposits from certain categories of investors.

Sapna aapka. Personal Loan Humara

Apply Now

Why Personal Loans from NBFCs Are Considered To Be A Better Option?

There are various reasons that justify opting for loans from NBFCs to be a much better option than traditional banking systems. NBFCs offer a plethora of benefits on personal loans; these are:

Flexible Criteria For Eligibility:

Unlike traditional banking systems, NBFCs offer a wide range of flexibility concerning eligibility criteria for personal loans as well as other loans. They consider a range of credit profiles, even individuals with lower credit scores or limited credit history. This allows opportunities for specific individuals who have not been granted with personal loans by other banks.

Quicker Loan Approval And Disbursal:

NBFC for personal loan is well known for its faster approval of loans and streamlined process of disbursal. They entertain simplified requirements for documentation and an efficient system of evaluation, which results in quicker loan disbursal. NBCFs can be particularly helpful if you require urgent funds for time-sensitive financial needs or other medical emergencies.

Personalised Loan Solutions:

NBFCs offer customised loan solutions tailored to the requirements of the borrowers. They develop a thorough understanding of the unique needs of their customers and offer more flexibility concerning loan amount, term of repayment, and installment plans. There the borrower can opt for a loan structure that aligns with the specific financial goals and capabilities for repayment.

Competitive Rate Of Interest:

One of the most important benefits that NBFCs offer is competitive interest rates for personal loans. While the rate of interest may vary from one NBFC to the other, they still offer attractive rates as compared to the rates offered by traditional banks. Compare rates of various NBFCs to find the best deal for your personal loan.

Accessibility For Unreserved Segments:

In the realm of financial inclusion, NBFCs play a crucial role as it extends services even to the underserved segments of the population. They provide specialised loans especially curated for individuals who have limited access to the formal channels of banking, for instance, in rural areas. This makes a provision for increased financial access and the empowerment of society’s marginalised communities.

Other Value-Added Services:

There are several NBFCs that go beyond offering loans. They also offer some value-added services such as access to financial education resources, credit card improvement assistance as well as financial counseling. This proves helpful for individuals in managing their finances and enhancing their financial well-being.

Sapna aapka. Personal Loan Humara

Apply Now

Conclusion:

If you are considering NBFC for personal loan, make sure that you research extensively and select a reputable NBFC. Ensure that the NBFC is registered with the proper regulatory authorities and review all their terms and conditions to ascertain the maintenance of transparency in their lending practices.

Last but not least, the final decision of choosing a NBFC must be made on the basis of careful consideration of your financial situation, preferences, goals, and needs. Compare the loan offers from multiple NBFCs and choose the one that aligns with your requirement.