When in need of financing, personal loans can help reel you out of a tough situation. While banks have long been the go-to option, Non-Banking Financial Companies (NBFCs) are redefining the borrowing experience with their simplified processes, faster approvals, and customer-friendly terms.
In this article, we explore the key benefits of taking personal loans from NBFCs and why they are a good alternative for your financing needs.
What are NBFCs?
Non-Banking Financial Companies (NBFCs) are organisations that provide key financial services like loans and investments. NBFCs are registered with the RBI and are regulated and supervised by it.
Most NBFCs offer quicker approvals, customised loan products, and a more borrower-friendly experience, making them a preferred choice for those seeking personal loans without the rigid requirements of traditional lenders.
Benefits of Taking Personal Loans From NBFCs
Here are the key benefits of NBFCs that make it worth considering taking a personal loan from NBFC.
1. Speedier Loan Approval And Release
The biggest benefit of a personal loan from an NBFC is how quick and hassle-free the loan approval process is. NBFCs feature streamlined and accelerated loan processing thanks to their minimal eligibility and documentation needs.
NBFCs only ask for a few KYC documents, so the application process is easy.As a result, most NBFCs sanction loans in 24 to 48 hours, while some even provide instant loan sanctioning via their mobile applications or websites.
Such fast processing makes NBFCs a suitable choice for those looking for instant financing, either for emergency needs or for pre-planned expenses.
2. Eligibility Criteria
NBFCs also provide some leeway in their eligibility criteria, opening up personal loans to a greater number of borrowers.
Most NBFCs sanction loans even for those who have moderate credit scores. Even if your credit score is 600-650, you might still be able to get a personal loan from NBFC. Additionally, they consider the comprehensive financial profile of the borrower, such as monthly income, liabilities, and repayment ability, instead of taking only the credit score into consideration.
3. Loan Amounts And Tenure Flexibility
NBFCs provide personal loans with high borrowing amounts and flexible repayment tenures, making them appropriate for small as well as big financial requirements.
You can secure a high loan amount depending on your creditworthiness and financial needs and repay it easily over a fixed tenure. NBFC personal loans may have a term between 12 months and 5 years or more. Additionally, the loan term and EMI payment schedule can be adjusted to meet individual requirements.
4. Competitive Interest Rates
Many NBFCs offer competitive and customised interest rates for personal loans, making personal loans affordable for a wide range of borrowers.
They can provide tailored interest rates based on various financial parameters. For instance, if you have a good credit record and a stable source of income, you might be able to negotiate the personal loan interest rates with the lender.
What’s more, many NBFCs also offer the facility of choosing between fixed and floating interest rates, where you can choose the repayment mode that suits your financial plans.
5. Accessibility
Compared to traditional lenders, NBFCs have a greater reach in areas outside of strictly urban zones. This gives a greater section of individuals access to reliable financing. NBFCs may, therefore, be a more suitable alternative for individuals seeking financing in semi-urban, rural, or remote areas.
6. Technology-Driven Convenience
NBFCs use advanced technology to facilitate a smooth and convenient borrowing process. Through simple-to-use apps and online platforms, you can apply for a loan, upload documents, and monitor repayments without stepping out of your house.
Simply visit your lending NBFCs website and log in to your account to monitor your loan status, repayment schedule, and outstanding amount in real time, providing complete transparency and ease.
Plus, you can plan your loan effectively using the personal loan EMI calculators available on your lender’s website. The tools assist you in determining your monthly expenditures, enabling you to budget better.
7. Tailored Loan Products And Deals
NBFCs also provide tailored personal loan products for various financial requirements. Be it a medical emergency, wedding, or business investment, a personal loan from NBFCs offers you the flexibility of end-use to easily meet these demands.
At the same time, several NBFCs have segment-specific loans for salaried employees, self-employed individuals, or entrepreneurs, with specific terms and advantages based on their financial profiles.
And if that’s not enough, you can also enjoy exclusive offers, discounted processing charges, or lower rates of interest offered by NBFCs during festive seasons to make personal loans more affordable.
The flexibility and range of loan products make NBFCs a convenient option for borrowers with unique financial requirements.
In Conclusion
Applying for a personal loan from an NBFC brings you a whole lot of advantages. This comprises quick approval, liberal eligibility, competitive interest rates, wider access, and a hassle-free online experience.
This makes NBFCs a more suitable option than traditional lenders. Are you looking for instant personal loans at competitive interest rates? Go to the Tata Capital Website or download the app to explore our flexible loan offerings.
FAQs
Ans. NBFCs provide personal loans at competitive interest rates depending on the borrower’s credit profile and income stability, making them an attractive option.
Ans. Yes, NBFCs offer unsecured loans, which mean a borrower is not required to submit any assets as collateral
Ans. Yes, a personal loan can be shifted from an NBFC to a bank.
Ans. Yes, as NBFCs are convenient and flexible when it comes to the process of personal loans. It is particularly ideal for individuals looking for flexible loan terms or with average credit scores.
Ans. A personal loan from NBFC can be obtained in five easy steps:
a. Go to the website of the desired NBFC lender or download the app.
b. Verify your eligibility by filling out some basic details.
c. Complete the application form and select the loan amount and repayment tenure.
d. Complete the e-KYC process.
03 April 2025
5 mins read
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