For business financing, companies have frequently turned to conventional lending institutions like banks. However, non-banking financial companies (NBFCs) have now undergone a significant transformation that has altered how lending is viewed in India.
Not all businesses can endure market fluctuations without financial support, which can be hard to get from conventional lending institutions due to their stringent eligibility criteria and terms and conditions. As a result, businesses have trouble meeting their working capital requirements. Consequently, getting a business loan from an NBFC turns out to be the ideal alternative. With their flexible eligibility criteria, competitive interest rates, and quick loan processing, NBFCs now run neck-to-neck with traditional lending institutions. This article talks about taking out an NBFC business loan.
Conventional financial institutions have strict lending requirements before they will approve a business loan. Additionally, lending firms look for a higher credit score, professional expertise, and annual revenue. In contrast, NBFCs have more permissive, flexible eligibility requirements for approving loan requests from businesses.
To make sure that their customers can easily obtain financing, they adopt a liberal approach.
The majority of borrowers choose NBFC business loans over loans from other lenders since they require minimal paperwork and documentation.
One of the main benefits for small businesses is that they can qualify for and receive the financing they need to meet their working capital needs quickly if they meet lender’s eligibility criteria.
Depending on your requirement, credit score, annual turnover, and other financials, lenders will offer you best possible interest rates. Interest rates can depend on many factors such as location, net income, business stability, collateral, monthly obligations, lender’s policy at the time of application, etc. NBFCs like SMFG India Credit offer business loan interest rates that are competitive and affordable.
In comparison to NBFCs, traditional lending firms have stricter guidelines when it comes to approving business loans. However, due to flexible eligibility and minimal documentation requirements, NBFCs typically handle loans more quickly. The time it takes to get a lending firm’s loan varies from a few days to a few weeks.
The majority of NBFCs today provide a 100% paperless application process for business loans through online channels. Business owners can apply for loans without leaving their homes or offices. To apply for an online business loan, all you need to do is go to the financial institution's website.
Contrarily, the majority of traditional financial institutions continue to use the conventional approach, which requires the borrower to present a hard copy of the documentation and personally visit the branch for confirmation.
A pre-approved business loan is offered to existing businesses with strong financials and a good CIBIL score by their existing lenders or banks. A business only needs to fill out the loan application and submit the required documents to the lender. The lender provides the loan considerably faster than the usual process. The quantum of the amount to be approved as a loan solely depends on the lender's policies, as well as other factors such as the business's financials.
Due to the ongoing developments in the financial lending sector over the past decade, NBFCs have begun to play a key role and have distinguished themselves as significant lenders in the loan market.
In order to free up as much of your valuable time as possible for your business, SMFG India Credit offers world-class business solutions and an application process that is entirely online. To fulfil all of your business and working capital needs, we provide attractive business loans with affordable interest rates and flexible repayment durations. Visit our website page to apply for a business loan online, now!
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