NBFC stands for Non-Banking Finance Company. It is registered under the Companies Act of 1956 and 2013. According to this act, NBFCs can provide advanced services such as loans, selling of bonds, stocks, securities, and so on. RBI’s Department of Non-Banking Supervision is responsible to supervise and regulate the NBFC loan companies.
● Why NBFCs for personal loans?
Here we’ll discuss the reasons why we should choose NBFC over banks to avail of a personal loan.
– Quick Processing: In the past few years people are choosing NBFCs for personal loans instead of going to the bank because non-banking financial institutions provide instant loans as compared to traditional banks. Sometimes it hardly takes five minutes. The disbursement process of the loan amount is also faster than the banks.
– Minimal Paperwork: Traditional banks always require heavy documentation for loan processing and approval. Here NBFCs use AI, ML, and ACD approaches. Most of the time online documentation submission and verification process is so simple and hassle-free.
– Competitive Interest Rates: NBFCs offer more competitive interest rates as compared to banks. People notice the comparison of the interest rates between the bank and financial companies. A lender can negotiate the rate of interest based on a good credit score and repayment history while on the other hand the interest rates of the banks are regulated by the Reserve Bank of India.
● What is a quick personal loan?
Quick loans are the type of short-term loans, advance salary, line of credit, etc. We can choose the option which is suitable for us just right from our mobile phones. The process of quick loans is different from the traditional loans which we get from banks. The lending process is simple and quick with easy registration and verification. If we meet the eligibility criteria the funds are transferred immediately to the bank account. We can repay the loan amount with the comfortable options chosen by us. In our country now most NBFCs have started providing quick loans to fulfill the needs of the borrower. Anyone can avail of a quick loan from Non-Banking Financial Companies.
● Choosing the right NBFCs for personal loans
Let’s discuss how we can choose the right NBFCs for personal loans so that we can avail of the maximum benefits.
- Personal Loan Interest Rates: Before choosing any NBFC we should research the market for low-interest rates. Always go for the financial company which is providing fewer interest rates so that we’ll not feel overburdened because of the high-interest rate.
- Loan Amount: After deciding the loan amount, we should check whether the NBFC provides an adequate loan amount. You can check for the Flexi personal loan so that you can get the option of paying only the interest part on the loan amount as per your requirement.
- Loan Terms and Conditions: You should check for the terms and conditions of the NBFC which you want to finalize. Get in touch with the existing customers to understand the NBFCs repayment flexibility, prepayment option, rescheduling option, etc. Directly check with the customer service or executive about the personal loan terms.
- Processing Fees: You can save the amount by comparing the processing fees of different NBFC loan companies. Simply visit a loan aggregator website. Also, check for the other costs involved in pre and post loan disbursement.
- Prepayment Options: Make sure your lender is proving you the option of prepayment. So that you have the choice of closing the loan before the tenor ends. If the foreclosure option is available then ask for the foreclosure charges.
- Add-on Benefits: Before applying for a personal loan check what benefits are provided by the lender. Add-on benefits like top-up loan option, discount on interest rates, any other additional loans, etc.
● Conclusion
You can get a personal loan from NBFC very easily. We have so many reputable non-banking financial companies in our country. By following the above tips and the factors you can choose the best lender with additional benefits. When you apply for a personal loan from NBFC instead of a bank, you can easily get a competitive rate of interest, online process, quick approval, and flexible terms and conditions.
