Here's Why NBFCs Are Better Than Banks For Personal Loan - Loan Trivia

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Friday, 31 July 2020

Here's Why NBFCs Are Better Than Banks For Personal Loan

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Even after you have decided to opt for a personal loan, there are certain things that you need to consider beforehand. These things can be regarding where you apply for a personal loan and overall eligibility criteria. 


Personal loan eligibility standards are usually very simple, which is why it is the most convenient financing alternative. However, what can add to your borrowing experience is finding the right financing firm for your requirements. 


One of the best ways to get instant personal loans online approval is with the help of NBFCs. In case you do not know what NBFCs are and how they are better than banks, then here is a write-up for you.


What are NBFCs?


The full form of NBFC is Non-Banking Financial Company. These organizations have a license to provide banking and financing services. However, these companies will be able to provide you with common financing alternatives, but not one of every type. 


On the other hand, non-banking financial companies are not supervised by international or national banking regulatory agencies. It means they are independent organizations that are allowed to deal in financial services by the government. This is the main difference between NBFCs and regular banks. 


Reasons NBFCs are better


1. Competitive interest rates


Interest rate on a financing service or product is one of the first things that you would like to compare while checking personal loan services online. With the help of NBFCs, you can save a significant amount on your interest rates. While general banks give a comparatively higher interest rate, NBFCs can be more affordable. This can also lead to savings on your part when it comes to monthly EMIs. Moreover, you can even calculate personal loan EMI for NBFCs online. 



2. Quick processing


The next reason why NBFCs are preferred for financing services, rather than a bank, is due to processing time. When you are in an emergency, you cannot wait for months to acquire a personal loan. Therefore, you can apply for a loan from an NBFC, if you want quick processing. Moreover, the documentation required for personal loan eligibility is also simple, which adds to the overall convenience.


3. Poor credit rating


When you have a low CIBIL score, it becomes almost impossible for you to generate finance. However, another reason that makes NBFCs superior is that they offer services to poor credit rating holders as well. But the interest rate offered for such services can be significantly high. It is because your transaction will be considered as a high risk one.


4. Fewer rules 


When you visit a bank to inquire about their personal loan services, you come across a number of different rules and regulations. These rules and regulations are sometimes difficult to understand, especially when it is your first time borrowing a loan. However, in the case of NBFCs, you do not have to worry about extensive rules and regulations. It allows you to borrow a personal loan more conveniently without being strict about terms and conditions. In short, the process of availing a loan from an NBFC is more flexible.


Bajaj Finserv provides you services like personal loans, business loans, credit cards, and EMI finance. For all these services, you can easily find pre-approved online deals. With the help of these deals, your loan processing time can be cut down and made completely hassle-free.


If you want to unlock your pre-approved loan offers, then register online using your basic personal information.


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