As per recent reports, the origination of personal loans in terms of value witnessed a double rise of more than 1.47 crore in December 2021. The reason behind this growth can be attributed to easy availability, no end-use restriction and minimal documentation.
In this regard, borrowers can choose NBFC personal loans as a borrowing option as they extend numerous lucrative offers. For the reasons mentioned above, personal loans are one of the popular credit options in the NBFC’s portfolio.
Before applying, read about the benefits of an NBFC personal loan.
4 Benefits of Availing of an NBFC Personal Loan
Personal loans are always considered a viable financing option for borrowers when they face an urgent financial crisis. One can avail of personal loans to meet professional and personal requirements. Lenders extend credit based on a borrower’s credit profile.
Nonetheless, here are some benefits of availing NBFC personal loans over commercial financial institution loans:
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Credit score
Borrowers with a substandard credit score are never entertained by commercial financial institutions. In fact, due to NPA or loan default, commercial financial institutions have made this parameter mandatory and even stringent. Meanwhile, availing of personal loans from NBFC comes with flexible terms, which means they do not consider a borrower’s creditworthiness only on the basis of credit score.
Borrowers with a credit score within the range of 600-650 can still apply for a personal loan. However, note that the borrowing cost will be higher than usual. However, one must know that borrowers can negotiate with lenders for low interest personal loans and flexible repayment terms with a higher credit score.
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Flexible eligibility parameters
Unlike commercial financial institutions, borrowers do not have to go through extensive eligibility parameters with NBFCs. Some of the basic parameters include credit score, age, employment, etc. By meeting these parameters, one can ensure instant personal loan approval.
Besides, applicants can also apply for a personal loan without a salary slip as the minimum salary requirement will depend on the job location.
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Minimal paperwork
Existing customers of leading financial institutions like Bajaj Finserv are not required to submit additional documents when applying for personal loans. Moreover, these customers are already eligible for exclusive pre-approved offers on a range of financing options, such as credit cards, business loans, personal loans, etc. These offers ensure hassle-free documentation for borrowers and save them time. Therefore, borrowers can check their pre-approved offers by submitting names and contact details.
For new customers, documents are limited to KYC, bank account statements, current salary slip, etc. Unlike commercial financial institutions, borrowers need not submit extensive documents.
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Prompt approval and swift processing
Borrowers can ensure quick approval within 5 minutes when availing of personal loans from reputed NBFCs. Moreover, pre-approved customers can also get approval within a few minutes of verification. However, one must also learn about the effective approval tips for a personal loan to avoid hassles during approval.
On the other hand, unlike availing of NBFC personal loans, borrowers have to undergo extensive documentation when choosing traditional financial institutions. In addition to that, NBFCs can process loan applications within one business day after the loan gets approved. Therefore, prospective borrowers can receive their preferred loan amount within 24 hours of approval.
Now that borrowers can identify that NBFCs are always a viable option when availing such credit options, they should also know the important things before taking a personal loan.
Apart from these, borrowers can completely rely on NBFC customer service assistance and follow a digital application process. These NBFCs usually appoint a customer relationship manager who assists a borrower when applying for or sanctioning a personal loan. In addition to that, borrowers must also look at the additional charges, lender’s credibility, etc., and choose the most suitable lender meeting their requirements.
Steps to Apply for NBFC Personal Loans
Usually, NBFC personal loans can be applied right from the comfort of your home. NBFCs follow a completely paperless process when borrowers apply for a loan.
Here is the step-wise guide to applying for an NBFC personal loan:
Step 1: First, borrowers need to visit their preferred lenders website and select ‘apply online’ to open the application form
Step 2: Input necessary details and verify the OTP sent to the registered contact number
Step 3: Submit KYC and income documents
Step 4: Select the loan amount one wishes to avail
Step 5: Submit the loan application
After verification, lender’s representatives will connect with borrowers to discuss further loan proceedings.
To sum up, both NBFC and commercial financial institutions extend personal loans with different rates and terms and conditions. Although traditional financial institutions offer lower interest rates, NBFC personal loans come with competitive interest rates. Therefore, NBFC can be an ideal option if one requires urgent finances. However, one must always select a lender per his/her financial requirements.
