A loan against property is a secured advance without end-user restrictions that can help borrowers fulfill any number of financial requirements. In India, there are several NBFCs and banks that offer this advance at competitive interest rates.
But while the credit offerings of banks are more widely advertised, availing the advance from an NBFC can impart individuals with several additional benefits.
Advantages of Loan from NBFC Over Banks
Following are a few ways in which an NBFC property loan is superior to a bank loan –
- Instant Approval Facility
Individuals can avail instant approval and hassle-free disbursal benefits from NBFCs on a high loan amount value of up to Rs. 3.5 Crore. With some NBFCs, borrowers can receive the sanctioned loan amount in their account within four days of its approval. Banks, on the other hand, take a significantly longer time, ranging up to 2 weeks, to even process the loan.
- Attractive Features & Facilities
Few NBFCs offer features like Flexi-Hybrid facilities on their loan against property, which make availing the advance much easier for individuals. With this facility, borrowers have the choice to utilize only a portion of the total sanctioned amount and pay interest solely for the amount they have used, making the loan more affordable. Banks seldom offer such facilities.
- Simple Eligibility Criteria
Individuals can avail property loan from NBFCs by satisfying a few simple loan against property eligibility criteria with parameters pertaining to age, income, nationality, etc. The eligibility criteria imposed by banks are much more stringent and harder to comply with.
Therefore, NBFCs are at an advantage over banks when it comes to availing loan against property. However, an individual should put in ample research while applying for the advance to avail the one best suited for his or her requirement.