Need Personal loans at short notice? Banks or NBFC?

When it comes to loans, there is always a popular question about which bank would be best for a particular loan. Since we know that various loans have different sets of rules in different banks, we shall put this thing in mind. The fact is that we should look at all the options available to us and then only start with further processing with great caution again to avoid putting ourselves in much of the worst situation. Taking this into account, we shall discuss what is essential for us, i.e. which sector is the best for an individual to find personal loans at short notice.

Since we know that taking a loan from a bank involves a massive pile of paperwork, documentation and time, so we shall be comparing the two major playing cards in the lending sector:-

1) Banks

Banks being our always convenient and conventional plan to look for money and savings.

2) NBFC

NBFC means a Non-Banking Financial Company which are registered under Companies act of 1956. these are financial institutions besides the bank that lends money. 

Now we shall understand the fact that a decade ago, NBFC was never considered even an option. Still, due to their impeccable facility of giving the loan at a short time, their conditions improved tremendously from Financial Year ‘16 to Financial Year 18-19 and that too within September of 2018. But it is obvious to be under the confusion that which organization shall be chosen when it comes under the obligation of getting a personal loan in short notice. Now it shall be noticed that While personal bank interest rates rely on the vagaries of RBI policy rates and market forces, NBFCs have control over interest rates charged to customers because of internal benchmarking.

It might be pretty evident for now that NBFC is much better for short term personal loan. The reasons shall be:-

1) Faster Processing

In banks, all the documentation, eligibility, creditworthiness and everything, takes a lot of time to approve the loan, which might take 1-2 weeks finally. On the other hand, we have the NBFC ( since 1956 ) in the field of lending which is known for their fast loan processing and approval because they have more flexible and bendable rules. Typically, on online a fullerton india personal loan ( a loan which serves multiple serves and has a rate of interest starting from 11.99% till the amount of 25 lakhs for a tenure of 60 months or five years ) that too within a few minutes requiring you meet all personal loan requirements.It is a straightforward job to apply for a personal loan and that too sitting in your home in your comfort zone.

2) Less requirement for Credit Scores 

The credit score that an NBFC demand is much lower than that of a bank. It makes it easier for the borrowers to get a loan without a sufficient credit score. When it comes to personal loans, NBFC is much reliable source when compared to banking irrespective of the fact that they came in the game of lending much later as compared to the banking, but modern problems require modern solutions.

Also Read:- Tips For Personal Loan, For The New One’s!