7 Reasons to Consider NBFCs When Looking to Get a Business Loan

7 Reasons to Consider NBFCs When Looking to Get a Business Loan

Business Loan
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Are you an entrepreneur or a business owner seeking financial support to fuel your business growth? Considering Non-Banking Financial Companies (NBFCs) can be a viable option when it comes to obtaining a business loan. NBFCs have emerged as prominent players in the lending industry, offering flexible and tailored financing solutions to meet the diverse needs of businesses.

Let's delve into seven compelling reasons to consider an NBFC when seeking a business loan.

7 Reasons Why NBFCs Are a Good Choice

When considering a business loan, there are several factors that require careful consideration, making the process cumbersome and time-consuming. However, opting for NBFCs can simplify and enhance this experience, offering a range of benefits that make them a favourable choice.

  1. Hassle-Free Documentation

    One of the most intimidating aspects of applying for a business loan is often the documentation required. Traditional banking institutions can require a vast array of papers that must be compiled, sorted, and submitted, often in person. This can be daunting and incredibly time-consuming for busy entrepreneurs who must focus on their operations.

    However, when dealing with NBFCs, this process becomes significantly simpler and more streamlined. The entire documentation process has been digitised and moved online for your convenience.

    You only need to upload the required documents onto their secure web portal. This can be done anytime, from the comfort of your office or home. This innovative approach eliminates the need for physical paperwork, allowing you to focus on what truly matters: growing your business.

  2. Customised Loan Products

    Every business is unique, and therefore, its financial needs are too. Traditional banking institutions often provide loan solutions that might not fit your business perfectly. But NBFCs offer a wide range of customised loan products catering to your needs.

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  3. Quick Processing

    In the world of business, time is an invaluable resource. Every minute spent waiting for your loan to process is a minute not spent on growing your enterprise. Traditional banking methods often involve a lengthy approval process which can hold up your business operations.

    NBFCs understand the importance of quick loan processing. Their loan process is quite simple and easy to follow, as they require minimal documentation. You can submit your application, check your eligibility, and, once approved, see the funds transferred to your account with just a few clicks. This rapid processing time ensures that your business operations never have to pause due to a delay in obtaining funds.

  4. Flexibility

    The financial cycle of every business varies. There are peaks and troughs, periods of growth and consolidation. Traditional banking loans often have rigid repayment structures, which can strain your cash flow, especially during slow business periods.

    However, NBFCs offer flexible repayment options tailored to your business needs. These options allow you to plan your repayments without overburdening your finances. This flexibility ensures that your loan repayment schedule aligns with your cash flow, enabling a smoother financial management process. Whether you wish to pay in smaller instalments over a longer period or larger instalments over a shorter period, the choice is yours. This flexibility can be a game-changer in managing your business finances efficiently.

  5. Accessibility

    In our digital age, the need for services that are accessible anytime, anywhere has become paramount. Traditional banks can be restrictive with their fixed operational hours and physical branches. If you're a busy entrepreneur, the last thing you need is to be bound by these limitations.

    Various NBFCs provide around-the-clock service through their web portal. You can access the loan services anytime, whether working late hours or travelling. All you need is a device with internet connectivity.

    The web interface is designed to offer you a seamless experience. Everything can be managed online, from applying for a loan and uploading the required documents to tracking the status of your application. The convenience of this accessibility allows you to focus on running your business rather than worrying about banking hours or branch locations.

  6. Higher Approval Rate

    Securing a business loan from traditional banking institutions can often be challenging. Their strict criteria and risk-averse nature can result in a lower approval rate. This can be discouraging for small businesses or start-ups in desperate need of funds.

    However, NBFCs operate differently. They leverage advanced algorithms to assess creditworthiness, leading to a faster and more inclusive approval process. Most of the NBFCs do not discriminate based on the size or type of your business. It's all about your eligibility and your ability to repay the loan. This inclusive approach makes NBFCs a more reliable and encouraging option for businesses of all sizes and types.

  7. Less Stringent Regulations

    Traditional banks are often governed by stringent regulations that can limit their ability to offer loans to certain businesses. Their rigid eligibility criteria can make it difficult for many businesses to secure the funding they need.

    NBFCs, on the other hand, operate with less stringent regulations. They follow a simpler eligibility criteria, which broadens the scope for businesses seeking financial assistance. This makes it easier for a wider range of businesses to avail the benefits of a business loan, helping them grow and flourish.


Whether you're a budding start-up in need of initial capital or an established business seeking funds for expansion, NBFCs (Non-Banking Financial Companies) present numerous advantages compared to other financing options. With their emphasis on simplicity, flexibility, and convenience, NBFCs offer a compelling choice for securing a personal loan and business loan.

Don't let financing hurdles hold back your business dreams. It's time to explore the numerous benefits that NBFCs bring to the table. Check your eligibility, apply for a loan, and prepare to take your business to the next level. You can also get personal loans on KreditBee, an instant personal loan platform for self-employed and salaried professionals, and let the journey to success commence!

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