Obtaining a loan is no more a tough task if you meet the eligibility criteria but the main concern among many is to decide whether to choose a bank or NBFC. NBFCs have played a vital role in India’s economic development and have been one of the key players in consumer financing. The continued better performance from NBFCs has given rise to an uptick of 15% customer satisfaction as compared to the banking customers.
Let’s see what makes NBFCs a better choice to avail loans these days:
- Quick Processing:
Traditional sources of financing are cumbersome and time-consuming. For consumers, time is often the key criteria in seeking funds. NBFCs have cut through countless processes leading to faster decision-making while ensuring the interest of both lender and borrower is safeguarded.
- Interest Rates:
Every consumer looks for a low-interest rate while availing a loan, and NBFCs have focused on this area. Borrowers found the low-interest rates by NBFCs more easy and affordable. This resulted in low EMI and thus helped borrowers remarkably.
- Loans available despite Poor Credit Rating:
Banks do not provide loans to individuals with a poor credit rating which often leaves the borrowers helpless. It is very difficult to get a loan sanctioned from the bank if the credit score is below 650. NBFCs took this as an opportunity and provide loans to individuals with poor credit ratings, but at a higher interest rate.
- Fewer Rules and Regulations:
As NBFCs are under the Companies Act, the rules and regulations for lending are not as stringent as banks. Of course, the risk of default is high with NBFC and thus interest rates and other charges will be accordingly priced by the NBFC. But, the borrowers are highly satisfied by the less complicated loan processes of NBFCs.
Most of the NBFCs are growing because of the above advantages they have.
Credit Fair, is an NBFC startup and aims to provide Fair Finance to Everyone, at the right time and the right cost.