Personal loans allow you to fulfil any financial need, such as a wedding in the family, a vacation abroad, emergency medical expenses, debt consolidation, home improvements and repairs, etc. Almost every bank and non-bank financial company (NBFC) in India provides these loans. However, picking the best lender may be difficult when applying for a Personal Loan online or offline. Therefore, let’s look at how an NBFC Personal Loan differs from bank Personal Loans and why going with NBFCs instead of banks might be advantageous.
Factors that help NBFCs grow in India
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Better lending models
A Personal LoanPersonal Loan finance company uses technological innovation to offer better financial services to customers. For example, peer-to-peer lending platforms link lenders with borrowers for a small fee. In this system, the lenders gain interest on the money they lend, and the borrower gets to spend it as they see fit.
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Automated risk assessment
The underwriting procedure has been automated by NBFCs using technology, which enhances the pace of the personal application process. This also lowers operational expenses, allowing banks to provide competitive interest rates to their customers.
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Fast and easy loan approval and disbursal
Many small-Business Loans are approved from the first call. Approval time for an NBFC Personal Loan is usually under an hour in most cases. Faster loan approval means quicker access to money.
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Better data utilisation
Although NBFCs do not solely rely on a borrower’s credit score when making a loan decision, they consider several data points while evaluating the application.
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Strong security system
A Personal Loan finance company employs cutting-edge technology to safeguard your sensitive information.
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Unique offerings
New and existing NBFCs have expanded their loan products to fit the various financial objectives of clients, but they have also diversified them. The debt consolidation market, Personal Loan for weddings, durable consumer loans, home renovation loans, vehicle loans, and two-wheeler financing are a few examples of lending markets that have grown significantly in recent years.
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Loan Offered to More Borrowers
A focused Personal Loan finance company meets the numerous financial demands of bank-excluded individuals. Their lending model has allowed people, especially company owners, to get a previously impossible loan with regular banks.
Reasons for NBFCs being a better choice for Personal Loans
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End-to-end Online Application Process
From beginning to end, you can complete the entire application process online when you choose an NBFC Personal Loan. There is no need to go through the hassle of finding a branch, filling out paperwork, and waiting in line.
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Get Loan Amount Quickly
NBFCs offer quick loan disbursement as compared to banks. Sometimes, you can get your hands on the loan amount within 24 hours!
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Competitive Interest Rates
Interest rates offered by NBFCs are cheaper than those provided by banks. This is because NBFCs have lower operational costs, and they use innovative technologies which help them assess risk better.
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Customized Loan Offers
You can get customised loan offers from NBFCs based on your specific requirements. They offer loans for various purposes such as travel, wedding, home renovation, etc.
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No Hidden Charges
NBFCs are transparent about their charges, and no hidden costs are involved. Therefore, you will know exactly how much you need to pay back before applying for the loan.
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Flexible Repayment Options
You can choose from various repayment options when you have an NBFC Personal Loan. This flexibility helps you repay the loan at your convenience.
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Easier Eligibility Criteria
It is easy to meet the eligibility criteria for Personal Loans from NBFCs are easier to meet than banks. This is because they have a more flexible approach to assessing the loan application.
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Better Customer Service
NBFCs offer better customer service as compared to banks. They have a dedicated team of executives who are always ready to help you with your queries and concerns.
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No Prepayment Charges
You can prepay your NBFC Personal Loan without having to pay any charges. However, this is not the case with banks where you must pay a certain amount as a penalty for prepaying the loan.
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Quick Loan Approval and Disbursal
NBFCs offer quick loan approval and disbursal, which means you can get the money you need within a few days.
Conclusion
So, if you are looking for a Personal Loan, it is best to opt for NBFCs instead of banks. They offer lower interest rates and flexible repayment options but have a quicker turnaround time. And most importantly, NBFCs are more customer-centric than banks, which means you will get better service and support throughout the loan process. Have you decided yet? If not, you should consider researching while you find your perfect NBFC Personal Loan provider.
