Why Choose Business Loans From NBFCs Over Banks | CSL Finance

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6/27/23, 319 PM
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CSL Finance May 15, 2023
Why Choose Business Loans From NBFCs Over
Banks? Business loans provide a crucial means
for entrepreneurs to secure financing to support
their business operations and enable growth.
Traditionally, banks have been the primary source
of such funding, but non- banking financial
companies (NBFCs) have emerged as a viable
alternative. This blog aims to examine the
reasons why NBFCs are an advantageous choice for
securing business loans as opposed to relying
solely on banks. NBFCs have a streamlined
application process that can often result in
faster approval times and disbursement of funds.
This is because they are not subject to the same
regulatory requirements as banks and can,
therefore, offer more flexible loan terms and
faster turnaround times.
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CSL Finance 5 Reasons To Choose Business Loans
From NBFCs Over Banks
6/27/23, 319 PM
NBFC company in Delhi have emerged as a popular
alternative to traditional banks for small and
medium- sized businesses seeking loans. This is
due to several factors that make them an
attractive option for entrepreneurs looking for
financing options. Firstly, NBFCs are known for
their flexible loan terms, which can be tailored
to meet the specific needs of individual
businesses. We offer a wider variety of loan
options, including specialised products that are
designed to cater to specific industries or
needs. Additionally, NBFCs have a streamlined
application process that results in faster
approval times and disbursal of funds. We are
not subject to the same regulatory requirements
as banks, which means we can offer more flexible
terms and quicker turnaround times. Moreover,
NBFCs may have more lenient eligibility criteria,
making it easier for newer businesses to access
loans. We often consider factors beyond just
credit scores, such as cash flow and revenue
when evaluating loan applications. 1. Quick
Approval and Disbursal One of the significant
advantages of NBFCs over banks is their faster
loan approval and disbursal time. Banks
generally take longer to process loans, as they
have strict eligibility criteria and need to
verify many documents. In contrast, NBFCs have
more relaxed eligibility criteria and usually
offer loans with fewer documents. Moreover,
NBFCs disburse the loan amount more quickly,
usually within a week, whereas banks may take
weeks or even months.
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6/27/23, 319 PM
CSL Finance

• Flexible Loan Terms
• Another advantage of NBFCs over banks is the
  flexibility they offer in loan terms. Banks
  usually have strict loan terms, and borrowers
  must agree to them to receive the loan. In
  contrast, a finance company in Delhi offers more
  flexible loan terms, including customised
  repayment schedules, no prepayment penalty, and
  the option to choose between fixed and floating
  interest rates. This flexibility can help
  businesses manage their cash flow more
  effectively.
• No Collateral Required
• Collateral is an asset that borrowers pledge to
  the lender to secure the loan. Banks typically
  require collateral for business loans, which can
  be challenging for small businesses to provide.
  In contrast, many NBFCs offer unsecured loans,
  which do not require collateral. This can be a
  significant advantage for small businesses that
  may not have enough assets to pledge as
  collateral.
• Personalized Services
• NBFCs are known for their personalised services,
  which are often lacking in banks. They take the
  time to understand the borrower's business and
  its unique needs, offering customised solutions
  to meet those needs. Moreover, NBFCs often
  assign a dedicated relationship manager to each
  borrower, who can help them throughout the loan
  process and offer guidance when needed.

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6/27/23, 319 PM
CSL Finance
5. Higher Approval Rate Finally, NBFCs have a
higher approval rate for business loans compared
to banks. Banks have strict eligibility criteria
and may reject loan applications if they do not
meet those criteria. In contrast, NBFCs have
more relaxed eligibility criteria, and they are
more likely to approve loans for small businesses
with less than perfect credit scores or no
credit history. Get Connected With Us
Today! While banks have traditionally been the
go-to source for business loans, NBFCs offer
several advantages that make them a better
option for small and medium-sized businesses.
With quick approval and disbursal times,
flexible loan terms, personalised services, and a
higher approval rate, NBFCs can help businesses
grow and succeed. Give us a call today!
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