Non-Banking Financial Companies (NBFCs) in India have emerged over the last few years. These Companies have improved the arena of personal lending hugely. People in India prefer NBFCs over traditional commercial banks for taking a loan. There are many reasons behind this tremendous evolution of NBFCs in India. The easing eligibility criteria, affordable interest rates along with many other such benefits have broadened the reach of NBFCs.
Key factors helping NBFCs to Evolve in India
- The major reason behind the evolution of NBFCs in India is that it provides an easier way of borrowing. NBFCs use financial technology to offer a loan to consumers. There are many instant loan apps in India, like PaySense, that can help you get an instant loan online.
- As NBFCs assist you with a smooth online process, it reduces all the operating costs and makes it simple to assess the risk. Along with that, it also boosts the process of application and makes it quicker.
- Unlike banks, NBFCs approve your loan within a few minutes and disburse the loan amount instantly.
- NBFCs do not only look at your credit score but also consider many other things before sanctioning your loan. That way, you do not have to worry about your average or bad credit score to get an instant loan.
- There are higher chances of your documents getting lost when you submit them to a bank for the loan application process. But being an online loan provider, NBFCs guarantee you the security of your information.
- NBFCs offer you multiple loan options depending on your different financial needs. It includes loans such as wedding loan, personal loan, travel loan, vehicle loan, etc.
Why should one prefer NBFCs over Banks to get an Instant Loan?
There are many reasons why one should opt for NBFCs to get an instant loan rather than a bank. Some of these reasons are listed below, and you must consider them if you are planning on getting an instant loan.
1- Online Process
As NBFCs assist you with an online loan, the application process for your loan gets easier and more comfortable for you. Unlike banks, you need not go through a long application process while applying for a loan from NBFCs. In addition, the online process has made it convenient for customers as they do not have to visit the branch of any bank and can get the application process done at their home.
2- Fast Approval
Since the loan application process of NBFC is simple, that also gets the lenders to approve your loan faster. If you are a pre-approved customer, it takes a few minutes for reputed NBFCs to get your loan approved.
3- Easy Processing of Loan
As a result of fast approval, the processing of your loan also gets easier. Once your loan application gets approved, your account will be credited with the loan amount within 24 working hours. At the same time, it takes more than a few days or weeks for your loan to get disbursed by a commercial bank.
4- Affordable Interest Rates
While the interest rates of banks are regulated by the Reserve Bank of India (RBI), the interest rates of NBFCs are based on the prime lending rate. That’s how NBFCs provide you with affordable interest rates.
5- Flexible Eligibility Criteria
Banks have several eligibility criteria which everybody cannot qualify for. On the other hand, the eligibility criteria to get an instant loan from NBFCs is Flexible and easier for most people to qualify. You also do not have to maintain a good credit score to get an instant loan from NBFCs.
6- Minimal Documentation
You are required to have a minimum number of documents to get an instant loan from NBFCs. However, various instant loan apps in India do not require many documents. For example, if you are applying for a loan from PaySense, you will require a few documents for your identity, address, and income proof.
7- Customer Friendly Approach
Since it caters the online loan to their customers, NBFCs are always there to help their customers out with any problem or queries that they may have.
