If you are a small business entrepreneur looking for formal credit, you have two options.
To take a small business loan online from a Non-banking Financial Company (NBFCs) or from a bank. However, since getting a bank loan can be difficult and cumbersome for small businesses, many NBFCs are there to support them, making it easier for micro-small-and-medium enterprises (MSMEs) to obtain a small business loan online.
Before taking a loan, it is vital to understand the two financial intermediaries offering them – NBFCs and banks.
Borrowing money from a bank usually entails a lot of paperwork and a lengthy loan application process. Most NBFCs, on the other hand, allow for easy application, approval and disbursement of funds due to their minimal documentation requirements. With tech-enabled NBFCs like Kinara Capital, you will not have to go through any long screening procedures to avail of a small business loan online, and will therefore be able to get funds sooner.
The document requirements for NBFCs can be minimal and flexible. Whereas a bank requires much more proof and documents.
ManyNBFCs look beyond the credit scores and have a less stringent requirement. Kinara Capital for instance uses technology and data to assess loan applications beyond just the credit score.
With NBFCs, you can get a loan much quicker than from a bank. With a bank, the loan processing itself can take weeks/months, let alone the loan disbursement.
Both banks and NBFCs have their own sets of pros and cons. But if you are a small company seeking a small business loan online, then choosing an NBFC would be a better option. This is because the loan products offered by NBFCs are better customized to suit the loan requirements of small businesses. Moreover, less paperwork, limited documentation, and no property collateral requirement are some added advantages that you get with Kinara Capital. You can even get started with an eligibility check that only takes 1 minute!