Did you know that in recent years, NBFCs have emerged as a popular choice for personal loans in India? With the simplified application processes, competitive interest rates and customer-centric approach, it's no surprise that more and more people are turning to NBFCs for their borrowing needs.
Keep reading to explore the benefits of taking personal loans from NBFCs and how they can make one's financial journey quick and hassle-free. The versatility of personal loans from NBFCs like Shriram Finance ensures that common people should have access to funds when they need them the most, granting them the financial flexibility to navigate through life's challenges with ease.
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Personal Loan from an NBFC is a Better Option—Know Why
Personal loans have become increasingly popular as they provide a quick and hassle-free way to access funds for various needs. In India, Non-Banking Financial Companies (NBFCs) have emerged as a preferred choice for availing personal loans. With over 9,680 registered NBFCs operating in the country, there's a growing demand for their services.
The benefits of taking personal loans from NBFCs are numerous and here are some key reasons that make them a popular choice among borrowers:
Flexible Loan Tenure
One of the best NBFCs for personal loan features is the flexibility in loan tenure. Depending on their financial situation and preferences, borrowers can choose a repayment period ranging from 12 to 60 months.
This flexibility helps borrowers to manage their monthly payments effectively and in some cases, even prepay the loan without incurring any penalties.
Customisable Loan Amount
With NBFC personal loan online services, borrowers can tailor the loan amount to suit their specific needs. Whether a small loan for a short-term requirement or a larger amount for a big-ticket expense, NBFCs provide customised loan solutions that cater to all unique financial goals.
Simplified Documentation Process
The NBFC personal loan application process is designed to be as hassle-free as possible. These institutions typically have minimal documentation requirements, which means that borrowers can quickly submit their applications and receive funds in a matter of days.
Moreover, most NBFCs have digitised their application process, allowing borrowers to apply for personal loans from NBFCs online, further streamlining the entire procedure.
Benefits of Availing Personal Loans from NBFCs
Understanding the key differences between these two options is essential for making an informed decision about selecting a personal loan provider.
| Criteria | NBFCs |
| 1. Speedy Approval and Disbursal Process | NBFCs typically process loan applications within 24-72 hours, making funds available to borrowers sooner. |
| 2. Eligibility Criteria and Credit Score Requirements | NBFCs cater to borrowers with credit scores as low as 650*, making loans more accessible for those with poor credit. *T&C Apply. |
| 3. Customer Service and Support | NBFCs often assign a dedicated relationship manager to guide borrowers through the loan process. |
| 4. Diversified Product Offerings | NBFCs provide specialised loan products such as loans for self-employed individuals or loans against property. |
| 5. Prepayment and Foreclosure Charges | NBFCs may have lower or no prepayment charges, encouraging borrowers to clear their loans early. |
| 6. Collateral Requirements | NBFCs are more likely to offer unsecured personal loans, which do not require collateral. |
| 7. Digital Platform and Accessibility | NBFCs often have user-friendly online platforms for easy loan application and management. |
| 8. Target Customer Segment | NBFCs cater to a wider range of customers, including those in rural areas and with low incomes. |
With the convenience of NBFC personal loan online applications and the ease of the NBFC personal loan application process, it's no wonder that more and more borrowers are turning to these financial institutions for their personal loan needs.
Why Opt for NBFC for Personal Loans?
The benefits of taking personal loans from NBFCs extend beyond competitive interest rates and flexible tenures. Here are some additional advantages that make NBFCs the ideal choice for personal loans:
1. Catering to a Wider Audience
NBFCs cater to diverse customers, including those in rural areas, self-employed individuals and borrowers with low incomes.
In 2022, NBFCs experienced significant growth in rural and semi-urban areas, with loan sanctions increasing by 13% and 19% respectively. This highlights the expanding reach of NBFCs in providing accessible financial solutions to diverse populations.
2. Personalised Loan Products
NBFCs excel in offering tailored loan solutions to meet the specific needs of borrowers. From medical emergency loans to debt consolidation loans, the best NBFC for personal loan options ensures that customers receive the right financial support for their unique requirements.
3. Easy Accessibility and Availability
The convenience of NBFC personal loan online services means that borrowers can apply for loans from the comfort of their homes. With user-friendly websites and mobile apps, the NBFC personal loan application process has never been simpler.
Furthermore, NBFCs have a wide network of branches operating across India, making it easy for customers to access their services, even in remote locations.
4. Transparency in Terms and Conditions
NBFCs are known for their transparent approach to lending, with clearly defined terms and conditions. This transparency helps borrowers make informed decisions and avoid any hidden fees or charges associated with their personal loans from NBFCs.
How to Apply for Personal Loans from NBFCs in Three Steps?
Applying for personal loans from NBFCs like Shriram Finance is simple and convenient. Follow these three simple steps to secure a personal loan:
Step 1: Visit Shriram Finance's website to review the interest rates, loan tenure and eligibility criteria to ensure their offerings align with your financial requirements. Borrowers can also use their online loan calculator to estimate their monthly EMI payments and plan finances accordingly.
Step 2: Collect the necessary documents, complete the online application form and submit it for review.
Step 3: Wait for approval, review the loan offer, sign the agreement and receive funds in your bank account.
By following these three steps, anyone can enjoy a seamless and hassle-free experience when applying for a personal loan from Shriram Finance.
The benefits of taking personal loans from NBFCs are numerous and make it a smart choice for borrowers. With competitive interest rates, flexible repayment options, minimal documentation and faster approval processes, NBFCs have made it easier than ever to access funds when one needs them most.
As one embarks on a financial journey, remember that choosing the right lending partner can make all the difference. So why wait? Explore the benefits of taking personal loans from NBFCs like Shriram Finance today and turn dreams into reality!
FAQs
1. Why do people take loans from NBFC?
People take loans from NBFCs because they offer faster loan approvals, flexible eligibility criteria, personalised customer service, diverse loan products and competitive interest rates. NBFCs also cater to a wider audience, including borrowers in rural areas and those with lower credit scores.
2. What are the advantages of NBFC?
The benefits of taking personal loans from NBFC include quicker loan processing, more lenient credit score requirements, specialised loan products, a wider network of branches and better customer support.
3. What happens if I don't pay my NBFC loan?
If a borrower fails to return an NBFC loan, penalties and late payment fees can be levied, which can increase the loan's overall cost. In addition, the credit score will also be negatively impacted, increasing the difficulty of obtaining loans or credit in the future.
