For your immediate financial needs if you are thinking of taking a loan then we know what comes to your mind first. You must be wondering whether you must approach a Public sector bank for a personal loan. Or whether it is better to connect with a Non-Banking Finance Company for a personal loan. If you are not sure whether you must choose a public sector bank for the loan or go for private financing then you are at the right place. Here, in this article, you can get detailed information about the private finance loan and NBFCs loans vs PSB Loans.
First a quick look at what is a private finance loan?
- These days some private money lenders or organizations offer personal commercial loans truerate services to people and that is called private financial loans.
- There are some differences between the loan from NBFC and that from PSB. If one considers the major differences then it appears that opting for a private financial loan from an NBFC can work out to be a better option.
Major differences between NBFC loans and PSB loans:
Interest rate-One of the most important aspects:
- The EMI that the borrower has to pay in the future depends on the interest rate and hence this is one of the most important factors that should be considered before availing any kind of loan.
- In the case of public sector banks, there are chances that one may have to bear an interest rate of 10.4 % or even more.
- As for NBFCs, some financial institutions charge a rate of interest of around 14%
- But private money lending companies like Money View are known to offer loans at a low-interest rate. The ROI at which Money View provides a loan to the applicant is 1.33% per month.
Have you checked the processing time of the personal loan?
When you need a loan urgently all that you want is that the loan is processed at the earliest.
- But in the case of banks, this may not be possible as many banks can take as long as 3 to 7 days to process the loan application.
- But private money lending companies like Money View take minimal time for loan processing. The entire loan application and disbursal process of the personal loan is done online and if everything is as per the requirement then the loan application is processed in just a few hours.
- After the loan approval, the amount will get credited to the bank account of the applicant in a very short duration.
The amount offered as a loan by the lending institution is important:
The principal amount that shall be disbursed by the lending institution also holds a lot of importance for the borrower. In the case of banks, an applicant can get a very high loan amount of around Rs. 40lakhs. But in the case of private lenders, it is possible to get a small amount which can be in the range of Rs 3000 to Rs 15 lakhs.
The point to be noted here is that the maximum amount given by the institution varies for different financial companies.
Knowing the details of the loan tenure:
The personal loan tenure is usually short in the case of most financial institutions.
- In the case of PSBs, the personal loan tenure can be in the range of 4 to 5 years.
- In the case of private lending institutions, the personal loan tenure is usually in the range of 1 to 5 years and it depends on the loan amount and risk involved.
The creditworthiness of the applicant matters:
- When it comes to getting a personal loan the creditworthiness of the applicant is very important.
- In the case of PSBs, the creditworthiness requirements are very high and here the applicant must have a very high credit score failing which the loan application is rejected by the bank.
- But in the case of lenders like Money View, they have their in-house credit measuring system and here candidates with low credit scores also have a chance to get a personal loan.
Details about the processing fees for the personal loan:
- Now the processing fee that is charged by the institution depends on the amount that the person has taken as a loan.
- In the case of PSBs, the processing fees can be in the range of 0.5% to 2.5%. But when it comes to private money lenders it is found that the processing fee might be a bit higher as compared to the PSBs.
Conclusion:
Both NBFCs loans and PSB loans have their pros. Now whether you must opt for an NBFC loan or PSB loan depends on your requirement like what is the loan amount that you want, whether you need the same urgently. Also, your creditworthiness, the loan tenure that you want, and the processing fee that you can manage has to be considered.
If you want to avail of a personal loan from Money View and need complete information like loan amount, eligibility criteria, etc. then all that you need to do is check the details on the website or app of Money View. (https://moneyview.in/). The financial team of Money View will be there to resolve all your queries.
