Benefits of Borrowing from a Fintech NBFC in India

May 27, 2022

By Team Kinara

< 1 mins read

MSME Loan

Why do people, corporations, and organizations choose to borrow money from lenders? This is because we require funds for a variety of reasons. When lending money to individuals, lenders need specific assurances, but in some circumstances, trust is all that matters.

Any loan has three primary components: the loan amount, the interest rate, and the repayment time. Because they are reputable and are bound by specific government rules, NBFCs and banks prove to be the most trustworthy lenders.

Many NBFCs now provide loans, but it is crucial to understand the complexities of such loans before picking one.

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When you needed a loan a few decades ago, your options were limited to banks and individual moneylenders. With the introduction of NBFCs, things have changed dramatically. You may be unsure as to which form of financial institution is suitable for you to apply for a loan as a borrower. Should a person get a loan from a private or public bank? What about non-bank financial companies (NBFCs)? What about a financial technology company?

What is NBFC?

An NBFC is not a bank, but it provides monetary functions similar to banks, such as offering loans, credit facilities, investments, and other programmes. NBFCs also help firms buy shares, stocks, debentures, bonds, and government instruments.

It also makes services like hire buy, leasing, venture capital financing, home financing, and insurance possible.

Benefits of NBFCs

Taking a loan from an NBFC rather than a bank has various advantages for you as a borrower.

Customer care:

Customers receive superior service from NBFCs during and after the loan approval and distribution stages. Borrowers can check the status of their loans and set up reminders for when their payments are due.

Fast Processing:

For evaluation, most banks are bound by Reserve Bank of India’s legacy procedures, rules, regulations, and guidelines. They use a set of guidelines to analyse your eligibility, documents, and creditworthiness before finally approving and disbursing a loan to the customer. It can take up to two weeks to receive your funds in your account.

NBFCs, on the other hand, are recognised for expediting loan processing and approvals since they have more leeway with the rules. If a customer meets all of the loan conditions, an online Kinara Capital loan can be disbursed within 24 hours.

Credit rating:

A borrower with a low credit score is usually ignored by banks, and his or her loan application is denied, further lowering the credit score. These borrowers can, however, obtain loans from NBFCs subject to additional scrutiny, documentation, and a higher interest rate.

NBFC Loan Eligibility Criteria

The following are the eligibility criteria:

When applying for NBFC financing, you must be at least 21 years old (varies from lender to lender)
The loan's maximum maturity age shall not exceed 60 years (varies from lender to lender).
Salaried employees of government agencies, commercial firms, and multinational corporations are eligible to apply.
Self-employed individuals can apply for a loan as long as they match the income requirements of the top NBFC in India..
At least one year of work experience is required.
NBFC bank loans are only available to Indian residents.
For salaried applicants, a minimum monthly salary of Rs. 15,000 is necessary.

Loans are available from both non-bank financial institutions (NBFIs) and banks. NBFCs are fast reforming by offering individuals attractive rates, since banks are notorious for their low interest rates. NBFCs are a fantastic option if you need money quickly and with minimal hassle.

The needs and requirements of each individual vary. Some people want a faster loan approval, while others want a higher loan amount and superior customer service. Based on your needs, you must select a lender and a product.

Many of the aforementioned advantages, as well as many others, can be obtained by applying for an online business loan from Kinara Capital, which provides reducing rate loans up to Rs. 30 lakhs to meet your short and long-term financial needs. Kinara Capital offers a variety of business loans and flexible payment plans that are easy to apply for online and do not require collateral. Apply for a business loan in the myKinara app now.