Learn the Benefits of taking Personal Loans from NBFCs in India

India’s credit landscape has witnessed people’s strong propensity toward obtaining personal loans. The reason behind such demand can be attributed to its zero collateral requirements, quicker approval, minimal eligibility norms, documentation, etc. 

Moreover, with the emergence of NBFC (Non-Banking Financial Company), availing of a personal loan has become easy. An NBFC personal loan extends faster disbursal of loan amounts, provides personalised offerings, etc. Moreover, they have a dynamic digital presence which contributes to borrowers’ convenience. In this regard, individuals seeking an NBFC personal loan must have a well-rounded understanding of its intricacies and benefits.

Know the benefits of taking personal loans from NBFCs in India

Individuals can reap several lucrative benefits from availing of a personal loan from an NBFC:

• Faster processing 

Traditional financial institutions have to undergo legacy processes, rules and regulations while approving a personal loan application, which takes up some time. Lenders will follow several steps of verifying the borrower’s eligibility, documentation and creditworthiness before disbursing the loan amount. 

On the other hand, NBFCs ensure swift processing and quick approval. With a successful verification process, borrowers can have immediate access to funds. Hence, individuals in urgent need of funds will find it preferable to opt for the credit option from an NBFC. 

• Easy to meet eligibility norms

The eligibility parameters set by NBFCs are easy-to-meet. Borrowers do not have to comply with tedious eligibility norms; they will just abide by age factors and income stability. Though NBFCs are less stringent with CIBIL scores, keeping a higher credit score will improve borrowers’ eligibility to receive quick loan approval. Moreover, as a higher credit score reflects borrowers’ decent repayment record, it also helps them fetch low-interest personal loans. 

• Minimal documentation

With NBFC, borrowers can enjoy a paperless application process. Moreover, a personal loan being a secured credit option, does not demand a lengthy documentation process. Hence, borrowers will receive approval for the loan amount on submitting KYC papers, bank account statements, salary slips etc. 

In case borrowers have a good CIBIL score of 750 and above or have additional sources of income, they can avail of personal loan without salary slip. 

• Leniency regarding credit scores

Borrowers who are availing of a personal loan for the first time or have a lower credit score than the desired score will prefer opting for an NBFC personal loan. This is because NBFCs do not have a rigorous approach to scrutinising borrowers’ creditworthiness through their credit scores. Though borrowers have to bear higher costs of borrowing, they have the chance to receive loan approval. 

Moreover, borrowers who have substandard CIBIL scores, However, in such case, borrowers must show stable income proof. Furthermore, they must know the things to do to improve their personal credit score.

• Online application form 

One of the significant benefits of NBFCs is their dynamic online presence. Borrowers can reap the advantage of a 100% online application and approval process by following the mentioned steps.

Step 1: Visit the preferred lender’s official website and head to the product page to select a personal loan.

Step 2: Now click on ‘Apply Online to get redirected to the application form

Step 3: Provide the mobile and OTP and proceed to mention basic information.

Step 4: Upload documents, mention the desired loan amount and submit the form.

On successful application, a representative from the NBFC will contact and assist with the remaining application process. To ensure quick approval, borrowers must know the mistakes to avoid while applying for a personal loan.

• Exceptional customer service

NBFCs are also popular because of the prompt customer service that they offer. These financial institutions have a customer relationship manager who will ensure instant assistance to borrowers at every stage of their loan application and approval process. Borrowers can even track their loan status and EMI deadline online, helping them make timely repayments. 

• Pre-approved loan offers

Furthermore, leading NBFCs like Bajaj Finserv extends exclusive pre-approved offers to borrowers. These offers ensure an expedited application process and are available on various financial products like personal loans, business loans, credit cards etc. Willing individuals can check their pre-approved offers by submitting their names and contact details.

Before choosing between an NBFC and traditional financial institutions, one must consider a few things before taking a personal loan.

To sum up, the easy accessibility of an NBFC personal loan has made it easier for individuals to sail through monetary exigencies. Moreover, with the availability of competitive NBFC personal loans, it has become convenient for borrowers to opt for an affordable cost of borrowing, reduce EMI burden and meet urgent financial requirements.