Personal loans are a great tool to fund any financial need, including a wedding in the family, a trip abroad, urgent medical expenses, debt consolidation, home renovation and repairs, and so on.
These loans are offered by almost all banks and non-banking financial companies (NBFCs) in India. That is why when you want to apply for a personal loan online or offline, choosing the best lender can be a difficult task.
Here we will discuss how NBFC personal loans are different from bank personal loans and which one to choose.
What is Bank?
Banks are organised financial institutions and are governed by the apex bank of the nation, i.e. the Reserve Bank of India (RBI).
What is NBFC?
A Non-Banking Financial Company or NBFC is not a bank. However, it runs financial functions similar to banks, like providing loans and credit facilities, investments, insurance plans, and so on.
Why Opt for NBFC Personal Loan?
NBFCs have been exceptional in the unsecured loans (including personal loans) market due to their customized offers, broader reach, co-lending agreements, robust risk management and a dynamic digital presence. NBFC personal loans come at attractive interest rates of 10.99% to 36% p.a. You can get the loan
amount of minimum Rs. 50,000 to maximum Rs. 50 Lakhs from NBFC in India
and make the repayment in equated monthly instalments (EMIs) in flexible tenure
of 10 months to 7 years.