Why NBFCs are Better than Banks?
when it comes to borrowing loan most prefer NBFCs over banks and the reason for this is banks have hard rules and requires more time to approve or sanction a loan. On the other hand NBFCs ensures the processing is quicker and necessary loan amount is disbursed within days.
4 Reasons why NBFCs are preferred over banks for loans
Competitive Interest Rates: Rate of interest is one of the main aspects of all types of loans. Non-Banking Financial Sectors have started to concentrate on this area in the recent decades and have brought down the interest rates to either equally to bank lending rates or at times even lower to bank rates.
Quick Processing: NBFCs have taken this as an opportunity to meet the demand by quickly processing the loans at competitive rate of interest. At times, borrowers are even ready to compromise on the interest rates if the loan amount is huge and if they could get it approved quickly.
Less Rules and Regulations: As NBFC are under Companies Act, the rules and regulations for lending are not as stringent as banks. This helps borrowers to get loans easily.
Loan available for Individuals with Poor Credit Rating: Loans will be offered to individuals with low credit score by NBFCs but most of the time the interest rates for such borrowers will be higher than market rates. Due to these aforementioned advantages, most of the NBFCs are growing.
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