N@N

What is NBFC Loan? Difference between bank and NBFC Personal Loan

The article from Moneycontrol discusses the differences between Non-Banking Financial Companies (NBFCs) and banks in terms of personal loans. NBFCs are financial institutions that offer various banking services but do not hold a banking license, meaning they cannot accept demand deposits like banks. Key differences include: NBFCs often have less stringent eligibility criteria, making it easier for individuals with lower credit scores or those self-employed to secure loans. They might offer higher interest rates due to their higher cost of funds compared to banks, which can borrow at lower rates from the RBI. NBFCs also tend to provide quicker loan processing and disbursement, and they might be more flexible with loan terms. However, banks generally offer lower interest rates, have a broader range of financial products, and are perceived as more secure due to deposit insurance. The article also touches on the regulatory oversight, noting that while both are regulated, NBFCs face different regulatory norms which can affect their operations and the products they offer.

Read the Full Moneycontrol Article at:
[ https://www.moneycontrol.com/news/business/personal-finance/what-is-nbfc-loan-difference-between-bank-and-nbfc-personal-loan-12966857.html ]