What is NBFC Loan | Bank Vs NBFC Personal Loan | Bajaj Finance (2024)

Advantages of getting a personal loan from NBFC

1. Easy eligibility criteria
   For an NBFC loan, you do not have to comply with lengthy or complicated eligibility criteria for personal loans with NBFCs.The primary parameter that these lenders consider is yourcredit score.A minimum CIBIL score of 685 or higher can get you instant approval. Those with low credit scores can also apply by indicating substantial income and a sound career portfolio.

   In contrast, theeligibility terms setby banks remain quite stringent, especially for self-employed applicants.

2. Minimal to nil documentation
   Existing or pre-approved customers do not need to submit any documents when applying for a personal loan with an NBFC. For new customers, the documents required are limited to OVDs for KYC, bank account statements, and the latest salary slips.

   In the case of banks, both existing and new customers may have to submit lengthy paperwork. These lenders usually require additional documents from self-employed applicants too.

3. Quick approval
   Pre-approved customers can receive loan approval within a few minutes of applying with the best NBFC for a personal loan. In other cases too, you can get an unsecured loan approval in just 5 minutes* from reputed NBFCs.

   This is not usually the case with banks, as they have more internal processes to comply with before approving an application.

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4. Swift processing
   NBFCs can process an application within one working day after approval. Borrowers can thus receive the money in their account in under 24hours* with select non-banking financial companies. This makes NBFC loans the ideal funding option for urgent needs such as medical emergencies.

   The disbursal time for a personal loan from banks may extend anywhere between a few days and a few weeks.

5. Completely online application process
   We offer a 100% digital and paperless application process.You only have to provide basic details such as name, phone number, and city to initiate the procedure of applying for an NBFC loan online.

   On the other hand, anonline personal loanapplication process is still not available from several banks. This makes it more difficult as borrowers must visit a branch and apply in person.

6. Exceptional customer service
   Last but not least, NBFCs have superior customer service that can be relied on.These lending companies usually assign a customer relationship manager who is available to assist a borrower before and after applying for or sanctioning an NBFC personal loan.

   On the other hand, such services with banks, especially those in the public sector, remain less customer-centric.

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For all these reasons, opting for an NBFC personal loan is often seen as a better option. You can also get an instant personal loan of higher quantum from an NBFC (based on eligibility) as compared to a bank. Apply for a personal loan with Bajaj Finance to get attractivefeatures and benefitsagainst nominal interest rates. You can also use our personal loan EMI calculator to compute your monthly repayments in advance and opt for the loan amount that best suits your budget.

Types of NBFCs

Below are a few types of NBFCs in India you need to know:

• Deposit-taking NBFCs (NBFC-D)
• Non-deposit-taking NBFCs (NBFC-ND)
• Asset Finance Company (AFC)
• Loan Company (LC)
• Investment Company (IC)
• Infrastructure Finance Company (IFC)
• Systemically Important NBFCs (SI-NBFCs)
• Microfinance Institutions (MFI)
• Housing Finance Company (HFC)
• Core Investment Company (CIC)

Eligibility criteria to get a personal loan from NBFC

The eligibility criteria for a personal loan differs from lender to lender. You can qualify for a Bajaj Finserv Personal Loan once you meet the five simple eligibility criteria mentioned below:

• Nationality: India
• Age: 21 years to 80 years*.
• Employed with: Public, private, or MNC.
• CIBIL score: 685 or higher.
• Monthly salary: Starting Rs. 25,001, based on the city you live in.

*You should be 80 years* or younger, at the end of the loan tenure.

Documents required to apply for the loan from an NBFC

The documentation requirements for a personal loan can vary from lender to lender. Below are the documents that are required to be submitted when applying for a Bajaj Finserv Personal Loan:

• KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register
• PAN card
• Employee ID card
• Salary slips of the last 3 months
• Bank account statements of the previous 3 months

Why is an NBFC loan a better option than bank loans?

Non-Banking Financial Companies (NBFCs) offer certain advantages over traditional bank loans, making them a preferred option for some borrowers. One advantage is flexibility in lending criteria, allowing individuals with lower credit scores or unconventional income sources to access financing. NBFCs often have faster approval processes and less stringent documentation requirements than banks, making them suitable for borrowers seeking quick access to funds. Additionally, NBFCs may specialize in niche markets or offer specialized products tailored to specific needs, providing borrowers with more options. However, borrowers should carefully consider interest rates, terms, and fees before choosing between NBFCs and banks.