Have you ever felt overwhelmed when applying for personal loans due to lengthy paperwork and delays in the approval process? What if you require funds for unexpected expenses like medical or urgent home renovations? Thanks to Non-Banking Financial Companies offering low-interest personal loan online, you don’t have to rely on traditional banks and save more time and effort.
In this blog, we’ll explore the advantages of NBFCs, compare them to traditional banking, learn about the eligibility criteria and know why NBFCs are a better option.
What are NBFCs?
Non-Banking Financial Companies, or NBFCs, are financial institutions that provide services like loans and insurance but don’t have banking licenses. In recent times, NBFCs have gained popularity as they offer flexible and tailored plans compared to traditional banks. These institutions mostly rely on raising funds from various sources to finance their operations.
Benefits of Taking Personal Loans from NBFCs
Before going forward, here are some of the reasons why NBFCs are most preferred for applying for personal loans India:
- Convenient Loan Application and Quick Approvals: Unlike traditional banks, where you are required to wait for days for loan approvals, NBFCs promise seamless and fast loan approval and disbursement of funds to avoid delays, which is helpful in emergencies.
- Flexible Repayment Tenures: Many NBFCs offer flexibility in repayment tenures. You can choose a period that suits your financial situation, making the process smooth and stress-free.
- Minimal Documentation: Now, you don’t have to worry about a lengthy documentation process and several background checks, as NBFCs have simplified the process by asking for minimal to no paperwork.
- Competitive Interest Rates: Many NBFCs offer loans at competitive rates and allow the room to negotiate based on factors like a good credit score (potentially more than 700) or if you are a loyal customer.
- 100% Digital: NBFCs have reduced the need to visit banks or physical offices, as the process is completely online. You can apply using your smartphone and get approval from the comfort of your home.
Difference Between Personal Loans from NBFCs and Traditional Banks
Since both non-banking financial institutions and traditional banks offer personal loans, knowing the difference between them is important to make an informed decision. Following are some of the key differences between NBFCs and traditional banks:
- Processing Speed: While banks might take days to approve the loans, non-banking institutions are committed to approving your EMI instant loans in hours.
- Loan Application: Loan applications via non-banking apps are straightforward as you don’t have to wait in lines and go through various background checks, like in traditional banks.
- Flexible Terms: Personal loan terms can be tailored per your financial needs on NBFCs. They even offer flexible repayment options to help you choose the right time to cover the loan and make the process stress-free.
- Interest Rates: Banks mostly set interest rates based on RBI regulations, which can’t be changed. On the other hand, NBFCs offer competitive rates where you have room for negotiation.
- Eligibility Criteria: Traditional banks have strict criteria to qualify for loans, but NBFCs often ask for basic eligibility, and you can get a faster loan approval.
NBFCs Personal Loan Eligibility Criteria and Documents Required
When applying for a low-interest personal loan online via a non-banking platform, here are the basic eligibility criteria to qualify:
- Age: Salaried employees must be at least 21 years and 23 years for self-employed individuals.
- Credit Score: A good CIBIL score (potentially more than 700) for quick loan approval at a lower interest rate.
- Income Proof: Must have a stable source of income.
The essential documents that you need to keep handy for personal loan applications are:
- Identity Proof (Aadhar Card or PAN Card)
- Income Proof (Salary Slips or Bank Statements)
- Address Proof (Rent Agreement or Utility Bills)
Why Choose Stashfin for Your Personal Loans?
Stashfin, a leading NBFC, offers a range of financial services, including instant loans and insurance. It stands out due to its user-friendly interface, making the navigation easy and loan application seamless.
Here’s why you should choose Stashfin for EMI instant loan:
- Offers credit limit of up to ₹5,00,000 at competitive rates.
- For short-term loans, you can enjoy up to 30 days of interest-free credit and save on extra costs.
- Choose the tenure of repayment as per your financial needs.
- The process is 100% digital, saving you time and effort visiting physical banks.
- Offers fast loan approvals and disbursements.
- Use EMI calculators for effective loan management to plan your loan repayments easily.
Conclusion
In the digital world, choosing NBFCs over traditional banks makes it a wiser option to get personal loans with greater flexibility and speed. Borrowers seeking low-interest personal loans online choose the non-banking platform like Stashfin for a seamless experience.
Remember to compare your options and choose a platform that offers terms that align with your goals. Read the fine print carefully before deciding, and make the most of your loans.
