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When considering a personal loan, one of the most common questions is whether to opt for a bank loan or an NBFC personal loan. Both financial institutions cater to borrowers, but they differ in eligibility criteria, interest rates, loan processing time, and flexibility. While banks follow stricter regulations, NBFCs are known for quicker approvals and more relaxed norms.
Choosing between the two depends on your financial preferences and borrowing needs. Understanding these differences will help you make an informed decision. In this article, we explore the differences and why FIRSTmoney is an ideal personal loan choice for you, offering the best of both worlds.
A Non-Banking Financial Company (NBFC) is a financial institution that offers banking services like loans and credit facilities, except for traditional banking services such as accepting demand deposits. Unlike banks, NBFCs operate under the Companies Act, 1956 and are regulated by the Reserve Bank of India (RBI).
NBFCs primarily focus on lending, offering financial services like:
Choosing between a bank and an NBFC for a personal loan depends on your financial priorities — whether it’s quick approvals, lower interest rates, or flexible repayment options.
While both banks and NBFCs provide personal loans, they differ in several key areas:
·
Feature |
NBFC personal loan |
Bank personal loan |
Regulatory authority |
RBI |
RBI (Fully regulated) |
Processing time |
Faster approvals |
Can be lengthy due to documentation |
Interest rates |
High |
Competitive |
Eligibility criteria |
Flexible |
Rigid |
Loan tenure |
Can be customised |
Predefined options |
Loan amount |
May offer smaller amounts |
Additional loan offer |
Both NBFCs and banks are available when you have a good credit score. However, there are certain conditions where you can choose one or the other based on the convenience.
Instead of an NBFC loan or a regular bank loan, FIRSTmoney smart personal loan from IDFC FIRST Bank provides a balanced solution, offering the best of both worlds:
Both banks and NBFCs offer personal loans, but your decision should be based on your financial needs, urgency, and credit profile. If you are looking for fast approvals, minimal paperwork, and flexible repayment options, then IDFC FIRST Bank’s FIRSTmoney smart personal loan is the perfect solution for you.
So, whether you need funds for an emergency, travel, or personal expenses, FIRSTmoney offers the ideal balance of quick disbursal and affordability. Apply today and meet your financial needs with ease!
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.