Benefits of Taking a Loan from Non Banking Financial Companies in India
Non banking financial companies (NBFCs) provide diverse financial services to individuals and businesses. It has become easy to get a loan from non banking financial companies because of the availability of different types of non banking financial companies. These institutions are very popular due to their ease of access and flexible loan products. Among the many features, one standout feature of NBFCs is their ability to provide specialized loans, including EV loans.
AMU stands out as a premier NBFC due to its personalized customer service, flexible loan options, competitive interest rates, and quick approval processes. It allows individuals and businesses to achieve their financial goals effectively and efficiently.
Types of Non Banking Financial Companies (NBFCs) in India
It is essential to understand the types of NBFCs operating in India before one looks to take a loan from non banking financial companies. The Reserve Bank of India (RBI) recognizes NBFCs according to their areas of focus and core functions.
Here are the different types of NBFCs in India:
1. Asset Finance Companies (AFCs): These companies specialize in providing loans for electric vehicles and the purchase of assets like vehicles, machinery, and equipment. They are particularly well-known for financing vehicles.
2. Loan Companies (LCs):LCs offer personal loans, business loans, and other types of unsecured lending. These companies often cater to individuals and small businesses looking for quick and easy financing.
3. Investment Companies(ICs): These companies focus on providing capital for investments in securities such as stocks, bonds, and mutual funds.
4. Infrastructure Finance Companies (IFCs): These NBFCs focus on lending for large-scale infrastructure projects like roads, bridges, power plants, and more.
Benefits of Taking a Loan from NBFCs
Take a look at the benefits one gets when they take a loan from these NBFCs.
Faster Loan Approval and Disbursement
One of the major advantages of taking a loan from NBFCs is the quick approval and disbursement process. Unlike traditional banks, NBFCs often have simpler and more streamlined procedures, reducing paperwork and processing time. This is especially beneficial for customers in urgent need of funds who want loans for electric vehicles.
Customized Loan Products
NBFCs offer a variety of loan products tailored to specific customer needs. For example, EV financing companies provide specialized loans with competitive interest rates for those looking to buy electric vehicles. This is a boon for individuals who wish to adopt sustainable transport options but find the initial cost of EVs a challenge. NBFCs also offer flexible repayment terms, allowing borrowers to repay loans in a manner that suits their financial situation.
Flexible Eligibility Criteria
NBFCs tend to have more lenient eligibility criteria compared to traditional banks. While banks may have stringent requirements related to credit scores, income levels, and employment status, NBFCs often assess loan applications more holistically.
Specialized Loans for Niche Segments
In addition to traditional loans, many NBFCs now provide financing for specific niches, such as loans for electric vehicles. As part of the government's push to promote electric mobility, EV financing companies have been established to make electric vehicles more accessible to the general public.
Conclusion
A loan from NBFCs in India offers numerous benefits, including faster loan processing, flexible eligibility, specialized loan products, and competitive interest rates. For those looking to purchase electric vehicles, electric vehicle financing companies have become game-changers by making eco-friendly transport more affordable and accessible.