Non-Banking Financial Companies have been game changers in the financial markets of India. These organizations have eased the borrowing process significantly and made credit more accessible.

If you are looking for quick financing solutions, opting for an NBFC personal loan is ideal. The reason is, the prerequisites are easy to meet, the financing amount is adequate, and the interest rate is competitive.

Before applying for any loan, it is important to check a few parameters to ensure it is a knowledgeable decision.

What to Look for in an NBFC Personal Loan

Here are some pointers that you need to keep in mind before applying for a personal loan:

Eligibility Criteria and Documentation

The first point that you need to take care of are the eligibility parameters and the documents required for the loan. Usually, with a personal loan, you must maintain a minimum credit score of 750. Also, you must be in the age bracket specified by the lender. Apart from that, you must have a steady source of income and meet the monthly income criteria of the financier.

Regarding documentation, you must have the usual ID and address proof, along with proof of employment and business registration details for self-employed individuals. You must also submit your income documents, such as salary slips and Form 16 for salaried professionals and business turnover details for self-employed ones.

Interest Rate and Additional Charges

The next point to review here is the interest rate and additional charges. Since interest rate will decide your total debt, you need to check it, make the calculation, compare between financial institutions and then decide. Along with that, you also need to factor in additional charges like processing fees and prepayment charges. The reason is that these charges will amplify your total cost of borrowing.

Repayment Terms

The repayment terms are the next point to review before taking a personal loan from an NBFC. Usually, the repayment tenure for personal loans is five years, but some financiers also provide a 7-year term. Besides this, you also need to check the prepayment and foreclosure-related terms to ensure a smooth experience. You can find all these details in the apps to take loans.

Processing Time

The next point to check here is the processing time. Usually, for NBFCs take about 24 hours to approve a loan application. Check this point before applying to avoid any delays.

Better Customer Service

Usually, NBFCs provide customer support to assist in every step of loan processing. They use data migration and collection for better customer profiling. These help them understand customers’ interests and preferences much better.

A customer relationship manager assists the borrowers with pre and post-application activities. Customer Relationship Managers resolve all customer queries, putting their concerns to rest once and for all.

Final Words

You can apply for a personal loan from NBFCs easily and quickly. Ensure you have checked all the above pointers to make an informed decision