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Reasons NBFC business loans are Better than Banks

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Reasons NBFC business loans are Better than Banks

A Non-Bank Financial Company (NBFC) is a financial institution that offers various financial services but does not provide banking service. The Non-Banking Financial Corporation (NBFC) is a company incorporated under the Companies Act, 1956 and Companies Act, 2013 that is involved in a variety of activities, including lending, hire-purchase, leasing, insurance, receiving deposits, chit funds, stocks, shares, etc. So business owners even consider NBFC business loan.

 

When MSMEs decide to apply for a business loan, they usually have to choose between a bank and an NBFC business loan. According to recent trends, MSMEs are more likely to turn to NBFCs due to their advantages, which include greater flexibility, more individualised services, and a quick loan disbursement process.

Advantages of getting a NBFC business loan as opposed to a conventional bank:
1. Adjustable Qualifications
The most obvious benefit of selecting an NBFC business loan over a bank is adjustable qualification. Banks usually have strict requirements before approving business loans. When granting requests for business loans, they adhere to a rigorous verification process and make extensive demands for supporting documentation.
An excellent credit score (750 or above), a minimum of three to five years of company experience, a minimum annual revenue of Rs. 1 crore, etc., are a few examples of the kind of requirements that banks typically ask for. The qualifying rules for NBFC business loans, in contrast, are more liberal and flexible when approving loan requests from firms. They take a permissive approach to ensure that their consumers can easily secure financing with NBFC business loan.

2. Quick Money Transfer
You can consider this point to be an extension of the one we just made. As was previously noted, obtaining business loans from banks entails a rigorous verification process and extensive paperwork. Completion of this can require some time.
On the other hand, NBFC business loan tends to have slightly more relaxed lending requirements. NBFC business loan require only minimal documentation, and their eligibility requirements are flexible. NBFC business loan are therefore disbursed more quickly. Due to this, business owners can easily access money when they need it.

3. Digital Techniques for Disbursing Loans
Hard copies and physical papers take up relatively little room in the modern digital environment. With the use of digital platforms, the majority of NBFCs have begun to provide 100% paperless NBFC business loan. Through the fusion of finance and technology, they have developed into “Fintech Companies.” These Fintech companies provide business owners with access to financing without them having to leave their homes or places of employment. To apply for an online NBFC business loan, borrowers simply need to visit the lender’s website or download one of their mobile applications. They can upload digital copies of the necessary documentation, and within 24 hours the money will be sent to their bank account.
Contrastingly, the majority of banks continue to use the conventional approach. This calls for the borrower to deliver hard copies of the paperwork and show up in person at the branch for verification. They may need to devote a significant amount of time and energy to this that they would otherwise devote to their business.
4. An agreed-upon loan cap
Several NBFC business loans are pre-approved lending ceilings. This loan cap allows business owners to withdraw funds as needed. It’s helpful to remember that only the amount used by the business owner and not the entire loan limit available to that person is subject to interest.
Such a plan assists business owners in reducing their EMIs, which allows them to save even more money. Additionally, a pre-approved loan limit guarantees that businesses never run out of money and eliminates the need for them to submit new business loan applications when they are in need.
Why the HFS business loan is ideal for you:
Easy and fast process
Applying for a business loan at HFS is a matter of 3 easy steps. Simply call us at your doorstep, apply for a loan, get quick loan approval and receive the necessary funds in your account!
Collateral-free
Yes, you heard that right. Our smart loans are collateral and guarantor-free, so you don’t have to be worried about either. As long as you have the zeal to grow, our business loans are just right for you.
Repayment tenure
The tenure for smart loans or collateral-free loans goes up to 5 years; while that for secured business loans goes for as long as your business needs. At HFS, you have the flexibility to choose the type of loan and tenure depending on your requirements.
Hassle-Free documentation
We understand that receiving the right funds at the right time is crucial for any business. With minimal documents, we ensure faster disbursal of the business loan.

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