Which one is better for a business loan – NBFC or bank?

I guess an NBFC business loan is better than a bank loan. Banks usually take a long time in processing loan documents and at the same time, they require a long list of documents. Also, their loan eligibility criteria are very stringent. Another problem with a bank loan is that they offer collateral loans, i.e. the borrower has to hypothecate an asset to get the business loan.
On the contrary, a loan for business from NBFC is disbursed usually within a week. They usually offer paper-less business loan which is processed very quickly. Also, NBFCs usually offer collateral-free business loans which make it possible for small business owners to avail a loan without providing any collateral. And their interest rates are also very low, which is like the cherry on the cake.
The availability of funds at the time of need is very important for a business. So, if you ask, I would suggest you avail an NBFC business loan.

 

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