No longer is it necessary to approach banks or usurers in order to obtain a loan. The growth of non-banking financial institutions (NBFCs) has fundamentally altered the way loans are granted. Old-fashioned bank customers would be aware of how challenging it is to apply for a loan from a bank.
There is a lengthy process and many laws and regulations are to be followed while obtaining a loan from the bank. In contrast, it is simple to apply for a loan from an NBFC. This has lead to an increase in people obtaining personal loans from NBFCs. Do you know why getting a personal loan from an NBFC is better?
Online application capability
For an NBFC personal loan, one may apply online. Additionally, you may look at the interest rates provided by different NBFCs. By giving some basic information, such as his or her name, address, and phone number, the consumer may start the loan procedure.
Loan with a low credit rating
Banks often have rigorous credit score requirements. Banks won’t offer personal loans to borrowers with credit scores between 700 and 750. However, NBFCs make loans available to borrowers with bad credit. In addition to credit score, they take into account other factors like salary.
Affordable interest rates
A personal loan from an NBFC is simple to apply for, and the interest rates are reasonable as well. These charges begin at a rate of 11% annually. Although NBFC interest rates are typically higher than those of banks, they are increasingly providing loans at competitive rates in an effort to draw in more clients.
NBFCs are not constrained by cumbersome processes, unlike banks. Because of this, less paperwork is required to apply for the loan. Loans are offered by NBFCs based on KYC information, bank records, and pay stubs. Due to the online nature of the application procedure, minimal paperwork is required.
Customer service at NBFCs is also superior to that of banks, which is an advantage. These businesses often give the borrower a customer relationship manager. Relationship managers are on hand to assist both throughout and after the personal loan application process. The services provided by banks, particularly those in the public sector, are less focused on the needs of the consumer. Apply now link to: IIFL.com
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