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REASONS WHY NBFC’S ARE BETTER THAN BANKS?
4 REASONS 1.Competitive Interest Rates: 2.Quick Processing: 3.Less Rules and Regulations: 4.Loan available for Individuals with Poor Credit Rating Let us discuss one by one
1. INTEREST RATES • Rate of interest is one in all the most aspects of all kinds of loans. • Non-Banking monetary Sectors have begun to consider this space within the recent decades and have brought down the interest rates to equally to bank disposal rates or sometimeseven lower to bank rates.
2. QUICK PROCESSING • At banks, it is vital that the person ought to fulfill the eligibility criteria however, NBFC are lenient during this facet. • This makes empowerment easier, power tool method and faster.
2. QUICK PROCESSING • Most of the days, folks apply for loan after they are in immediate want of cash. • NBFCs have taken this as a chance to fulfill the demand by quickly process the loans at competitive rate of interest.
3. LESS RULES AND REGULATIONS • As NBFC are beneath firms Act, the principles and rules for disposal do not seem to be as demanding as banks. • the chance of default is high with NBFC and therefore interest rates and different charges are according priced by the NBFC.
3. LESS RULES AND REGULATIONS This helps borrowers to induce loans simply. In addition, the simpler loan process is borrowers are extremely glad.
4. Loan available for Individuals with Poor Credit Rating • Individuals with poor credit rating usually will not get loans from banks. • The explanation for this can be banks take into account borrowers square measure unsound people if the credit evaluation is low.
4. Loan available for Individuals with Poor Credit Rating Unless the credit score is higher than 600 -650, it is terribly troublesome to urge a loan sanctioned from banks.
4. Loan available for Individuals with Poor Credit Rating: On the opposite hand, loans are offered to people with low credit score by NBFCs however most of the time the interest rates for such borrowers are above market rates.