Easy NBFC Personal Loan Eligibility Parameters
The NBFC loan eligibility criteria are as follows:
The minimum age should be at least 22 years at the time of applying for NBFC Finance.
The maximum age at maturity of the loan should be less than 58 years.
The applicant may have at least one year of work experience.
The applicant must be an Indian resident to avail of the NBFC loan.
Salaried employees working with a government organization, private firm, or multinational company can apply.
Why Should You Apply For A Personal Loan From An NBFC?
Simple eligibility requirements
When applying for personal loans with NBFCs, you are not required to meet any stringent eligibility requirements. Your credit score is the main factor that lenders take into account while approving your loan application.
Shorter Loan Processing Time
The traditional loan process takes anywhere between a few days to a few weeks. NBFCs can process a loan application within 24 hours after the approval. Borrowers get to use the money for their urgent funding needs.
Flexible loan terms
NBFCs often offer a larger loan amount than most banks and provide borrowers with flexible repayment options. They also allow you to select the payback period that best aligns with your financial situation.
Minimum Documentation
NBFCs require minimum documents to process the loan, unlike banks where customers are bogged down with exhaustive paperwork.
Competitive Interest Rates
NBFCs’ base interest rate is based on the prime lending rate, which the RBI does not regulate. Hence, NBFCs enjoy greater flexibility and can offer competitive rates of interest to their customers.
What Are The Factors That Are Helping NBFCs to Grow in India?
Better data utilization
NBFCs do not base their lending decision on only the borrower’s credit score. A lot of data points are considered when scrutinizing the loan application.
Automated risk assessment
NBFCs have automated the underwriting process which increases the speed of the personal application process. This also lowers operating costs, enabling NBFCs to offer competitive interest rates to their customers.
Unique offerings
The unique financial requirements of the consumers. Through debt consolidation loans, personal loans, wedding loans, consumer durable loans, home renovation loans, vehicle loans, two-wheeler loans, etc.
Better lending models
NBFCs use financial technology to offer better financial products to consumers. For example, peer-to-peer lending platforms connect lenders to borrowers for a small fee.
Benefits Of Taking Personal Loans From NBFCs In India
You have several advantages of taking a Personal Loan from an NBFC as compared to a bank.
Fast Processing
Most banks are bound by legacy procedures, rules, regulations, and guidelines laid down by the Reserve Bank of India for assessment. They follow various rules to assess eligibility, documentation, and creditworthiness and then finally approve and disburse the loan. It can easily take 1-2 weeks to get your money in your account.
Easy With Credit Score
Getting a loan is easier with a good credit score, but NBFCs are generally more flexible than banks when it comes to credit scores. They may sometimes offer personal loans to individuals with lower credit scores or even those with no credit history, as they have an inbuilt mechanism to review the customer profile.
Customer Service
NBFCs provide better customer service to their customers during and after the stages of loan approval and disbursement. Borrowers can view loan status and enable notification on the installment deadline.
Flexible Loan Option
NBFCs may offer more flexible loan options than banks, such as longer repayment tenures or the option to choose between fixed or variable interest rates. If you are unable to manage a fixed EMI, choosing this type of loan may be a better option for you.
Why Should You Choose An NBFC For A Personal Loan?
Credit Score
A borrower with a poor credit score is usually not entertained by banks, and his/her loan application is rejected, which further lowers the credit score. NBFCs are subject to certain scrutiny, extra documentation, and a higher interest rate.
Competitive rates
On instant personal loans, NBFCs can offer a competitive rate of interest. Due to the competition in the market and for promoting financial services, they offer reasonable interest rates.
FAQ
What is NBFC?
NBFC or Non-Banking Financial Company is a financial institution that provides banking services without requiring to hold a bank license. NBFC is a company registered under the Companies Act, and regulated by RBI.
What is the outlook for the NBFC industry in 2023?
NBFC-IFCs have demonstrated a healthy profitability trajectory with their post-tax return on assets (RoMA) estimated at 2.2% for 9M FY2023. ICRA expects the RoMA to improve further to 2.2-2.4% in FY2024.
Is it good to invest in NBFC?
NBFC fixed deposits with ratings of AAA from CRISIL and ICRA are considered the safest deposits. It is best to select NBFCs with a strong reputation and high safety ratings when saving with fixed deposits.
How much loan can I get from NBFC?
The eligibility criteria set by the NBFCs, you can get a high loan amount of up to Rs. 50 Lakh.
Which NBFC is best for work?
HDB Financial Services (HDBFS) is a leading Non-Banking Financial Company (NBFC) that caters to the growing needs of an Aspirational India. Incorporated in 2007, we are a well-established business with strong capitalization.
What are the new rules for NBFC?
NBFCs are required to hold a 0.25% reserve. for outstanding loans on personal home loans and loans to small and micro businesses.
Can NBFC provide a Personal Loan?
Yes, Non-Banking Financial Companies can provide Personal Loans.
Is it safe to take a loan from NBFC?
Yes, it is absolutely safe to take a loan from NBFCs. You must ensure to visit a secure website while applying for a loan.
