Personal loans are short-term, unsecured advances, ideal for meeting unforeseen or urgent expenses (personal, medical, travel, education, etc.). Apart from the conventional options, individuals also have other resources to borrow such loans from. For instance, many Non-Banking Financial Companies (NBFCs) have come to the forefront, extending tailor-made advances to prospective borrowers. Personal loan from NBFCs are one of the most preferred borrowing options off-late.
The working, existence, and services of NBFCs come under the purview of the Companies Act (1956). Although these institutions are registered with the Reserve Bank of India, they are independent to make decisions regarding financial products and services. For example, personal loan interest rates from banks are determined based on RBI policies and other market rates. But NBFCs follow an internal benchmarking scheme, using benchmarks like repo rates as point of reference.
6 points you must understand about NBFC personal loan
Even if you are in urgent need of funds, choosing the right lender for a loan is crucial. It is on this point that your future liabilities depend. Although there are many ways in which a personal loan meets financial needs, you need to make a smart choice between Government-backed financial institutions and NBFCs. But in order to choose wisely, you need to understand the following six points about personal loan from NBFCs:
Eligibility criteria
Eligibility parameters set for personal loans by NBFCs are a lot more lenient than those set by most other commercial lenders. In such cases, the credit score of an applicant is given more priority over other personal details. A score above 750 is enough to avail a loan from non-banking financial institutions. Other points enlisted under personal loan eligibility by NBFCs are:
Age between 23 and 55 years.
Specified minimum income as per the city of residence.
Minimal paperwork
NBFCs ensure to keep brief documentation and paperwork to avoid undue delay in the process of availing loans. For new borrowers, the document requirements are limited to KYC papers, bank account statements, and salary slips. Existing borrowers can avail personal loans without having to submit any documents again.
This allows reputed NBFCs, like Bajaj Finserv, to extend pre-approved offers to their existing customers. These offers can be availed on various financial services and products. It makes the entire process of getting funds simpler. Prospective borrowers can go ahead and check their pre-approved offers by sharing their name and mobile number.
High loan amount
NBFCs offer personal loans of up to Rs.25 lakh, depending upon an applicant’s eligibility. The amount is sufficient to meet most of the expenses such as emergency medical needs, education expenses, and so on.
Instant approval and quick disbursal
NBFCs usually provide loan approvals within five minutes of receiving applicants. Post that, the processing time is also kept short so that customers can access funds faster when it is the right time to avail personal loans. Usually, the sum is disbursed to the applicant’s account in less than 24 hours* of approval.
Dedicated customer service
Customers get to enjoy exceptional customer service from NBFCs. Representatives and customer relationship managers are always at service to guide customers about the products, services, benefits, and features.
Online services
These reasons make NBFCs an ideal stop to avail a personal loan from. For further assistance, one can also use a personal loan EMI calculator online. Through this calculator, the EMI estimates and interest outgo on repayments can be checked.
Personal loan from NBFCs are an ideal option when you are looking for funds with added assistance. Better personal loan interest rates and borrower-friendly terms facilitate easy repayment as well.
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