The NBFC industry in India has grown significantly in recent years, which has significantly improved the personal loan market. The use of NBFCs’ credit facilities in India has increased due to their individualized products, expanded reach, varied co-lending arrangements, and vibrant online presence. Continue reading to see why borrowers choose an nbfc personal loan over bank loans.

The benefits of using NBFCs for personal loans

• Simple eligibility requirements

For personal loans from NBFCs, you are not required to meet demanding or protracted qualifying requirements. These lenders primarily take into account your credit score. You can acquire fast clearance with a CIBIL score of at least 750. Those with poor credit can still apply if they have a stable source of income and a strong resume.

• Minimal paperwork

When requesting a personal loan from an NBFC, existing or pre-approved clients are not required to provide any supporting documentation. Only bank account statements, the most recent pay stubs, and OVDs for KYC are needed for new clients. Customers of banks, both current and new, may need to submit extensive documentation.

• Fast processing

An increasing number of customers have resorted to NBFCs recently for personal loans. Understand why? Due to the rapid loan approval offered by non-banking financial companies, sometimes five minutes, as opposed to traditional banks. In addition to approval, NBFCs have a quicker distribution procedure than banks.

• Better Support

Whether for form completion, document collecting, or query resolution, NBFCs always provide their clients with the best handheld help. In contrast, frequent clients of banks are given preference over non-regular customers who do not have an account (current or savings) with one of the bank’s locations.

• Online application choice

The application process is entirely digital and paperless. To start the process, all you need to supply is basic information like your name, phone number, and city to their website or even the urgent loan app. On the other hand, a few institutions still do not offer an online loan application process.

• Rapider Loan Processing

Obtaining a loan traditionally might take a few days to even weeks. Within 24 hours of the approval, NBFCs can begin processing a loan application. Borrowers can use the funds as a result of their immediate financial demands.

• Flexible regulations

Under the Companies Act, NBFCs are registered. The RBI is fully involved in the daily operations of banks, in contrast. Customers may easily obtain personal loans because of the lax regulations and straightforward procedures.

In conclusion

An NBFC makes it very simple to obtain a personal loan. Choosing a lender is made much simpler by using the advice above because many trustworthy non-banking financial companies nationwide exist. A personal loan from an NBFC rather than a bank can offer you more flexible terms and conditions with minimum documents required for a personal loan and speedy approval.

Read Also: Here’s a Quick Guide to Availing of An Instant Personal Loan with Bajaj Finserv