Banking used to be a chore, but technology has brought it into the 21st century. However, paperwork is still being used by banks which can feel like a drag on our precious time as we strive for something better. But not anymore!
Long gone are the days of grueling paperwork and countless hurdles when applying for a loan, thanks to NBFCs. By avoiding onerous legal protocols, these companies have increased their lending capabilities exponentially in recent years, making it easier to access personal loans with just a few simple steps.
Getting personal loans has become a lot easier. People are no longer going through banks or struggling with loan sharks for financial assistance. Borrowing money is just a few clicks away! But that’s not all. They are highly beneficial. Read on to know the reason for choosing NBFCs for personal loans.
What are NBFCs
NBFCs, or Non-Banking Financial Companies such as lendingplate, primarily provide loans to individual and corporate borrowers. For those requiring funds, NBFCs are an attractive alternative to conventional banks. They offer their services to borrowers who are unable or otherwise find it difficult to get loans from a commercial bank.
Securing a personal loan from non-banking financial institutions has major benefits. They are not overly restrictive and can finance the entire amount. In the case of bank loans, if the loan amount is large, the bank typically approves a portion of it, and the borrower is responsible for arranging the rest.
Unlike the lengthy processes associated with loans from banks, NBFCs offer fast and convenient borrowing. Those worried about credit checks or the need to provide collateral can put their worries at bay. NBFC personal loans are unsecured; it takes minutes to approve them and much more. Read further to understand why the NBFCs are the best when getting personal loans.
Reasons to Choose NBFCs for Personal Loans
Be it a private or government-owned bank, NBFCs are still the go-to option for those who want personal loans. Below are the reasons why:
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Involves less paperwork
With the advancements in technology, non-banking institutions are now able to provide borrowers with loans without having them go through a mountain of papers to be approved. They use AI or ML approaches to quickly assess risk profiles using just basic documentation.
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Available at affordable rates
Taking out a loan is a major decision, and the interest rate applicable can have consequences. A high-interest rate will not only be a financial burden but could also mean paying more. NBFCs offer personal loans at lower rates than conventional banks. Taking out a loan with an NBFC is a relief for borrowers. The lower rate means you will not repay more.
NBFCs have an advantage in their lending capabilities. Since they are not governed by the government, they can offer lower interest rates on loans to attract more customers. This flexibility allows them to stand out from other lenders and provide better services.
With low-interest rates and a lack of prepayment charges, it’s no surprise that people seeking loans are flocking to NBFCs. Compared to banks, these institutions offer more affordable borrowing options.
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Less strict with credit history
NBFCs offer a unique credit evaluation approach that puts them ahead of traditional banks. Rather than strictly relying on your credit score or history, they consider various aspects, such as account transaction patterns, to create an overall profile for assessing risk. This view paves the way for those without a credit history.
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Nil collateral
NBFCs can offer a personal loan without requiring collateral as security. Banks, however, require collateral before you can be given a loan. This is the main reason why people are avoiding bank loans. Let’s say you don’t have an asset to provide as collateral. It means you will not get the loan.
But with NBFC, you are sure to get the loan if you don’t have a property to use as collateral.
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Convenience
Millennials are constantly on the go. They don’t find time for even basic errands, let alone tedious bank visits. Thankfully, online personal loan applications have come as a savior, providing convenience and flexibility like never before. Individuals can now apply for personal loan for self-employed from home without having to step out and have their money disbursed directly into their accounts.
These instant personal loan applications enable borrowers to customize their loans and access fast funding, even without a credit history. The relaxed laws are also making it easier for people to access loans quickly.
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Digital approach
NBFCs have taken full advantage of digital processes to create a more favorable lending environment for borrowers. Their digital approach has helped them not only process loan applications faster but also become more competitive in the market.
The high-tech customer service allows NBFCs to provide quick responses and personalized insights about which loans are best suited for individuals. This helps create a more tailored approach to the loan process that traditional banks are unable to provide due to their rigid systems.
More and more people are turning away from traditional loans to instant ones provided by NBFCs. These companies offer many advantages, including a wide selection of options for urgent loans, making it the ideal choice when money is needed fast for personal use.
