Top 4 Loan Types Offered by NBFCs and Their Benefits

Nowadays, many individuals in India prefer applying for a loan with NBFC (non-banking financial company) and getting quick access to funds for their different needs. These non-banking financial organizations have a reputation for offering credit to all, even to those who have a low credit score. 

In India, NBFCs came into existence in the 1960s, but they have gained immense popularity over the last decade or so. Today, they have become the best alternative for both individuals and businesses for those financial needs, especially loan-related requirements that cannot be fulfilled by the banks. 

 

There are different kinds of NBFC loans, which are discussed below:

 

Home loan

Owning a home is one of the most cherished dreams of a million Indians. However, the path to homeownership can be quite daunting and challenging, especially when it comes to arranging the funds required to complete the purchase. This is where applying for a home loan with a leading NBFC like India Shelter can be a smart financial decision. 

A home loan allows you to take a step closer to realising your dream of being a homeowner come true. You can get the desired funds based on your financial capacity and repay the amount in affordable EMIs (equated monthly instalments) over an extended period of up to 30 years. 

Also, the NBFC home loan interest rate is quite competitive. A low interest rate translates to low EMIs, allowing you to repay the loan easily. You can compare the offers from different lenders and choose the right lender that offers the loan at the best rate.

 

Loan against property

A loan against property, or LAP, also called a mortgage loan, is a type of secured loan that allows you to use your existing property as collateral and secure funds against it. You can pledge your residential or commercial property, be it a plot of land, office premise, warehouse or an apartment. 

Getting LAP is a great way to get quick access to funds and meet your emergency financial needs. Unlike home loans, you can use the funds obtained to for any personal or business purpose as you deem fit. You can use it to increase business capital, manage a child’s wedding expenses, pay university fees, purchase new machinery, or take a luxury vacation. 

One of the important aspects of LAP that you must know is that the maximum amount you can pay depends on the current market value of the property you pledge. Mostly, lenders offer up to 50% of the property’s value as a loan. 

 

Home renovation loan

A home renovation loan is one of the most common types of home loans. As the name says, it is a type of credit that you can use to undertake home repair or improvement work. Even the most well-built and designed homes tend to get old and would need some repair work. 

It could mean applying a fresh coat of paint, fixing the broken ceiling, replacing the bathroom tiles, filling up the cracks in the walls to prevent leakages or redoing the full décor to make the space look livelier and more ambient. These repair works may cost a lot of money, and applying for a renovation loan can help you get the funds you need to carry out the renovation work. 

 

Home construction loan

A home construction loan is very similar to a regular home; the only difference is that you can get funds to construct your own house on the plot of land that you own. You can get the desired amount based on the estimated construction price.

However, unlike the regular home loan, where the lender disburses the entire sanctioned amount in a single lump sum payment, in a home construction loan, you would get the disbursement in a structured manner. You would get the disbursement at different stages of construction. 

Here are some of the benefits of applying for a home loan with an NBFC.

 

• Quick approval

The NBFCs offer online services, allowing you to apply for the loan easily from the comfort of your home or office. Also, the seamless approval process ensures a swift turnaround time and quick access to funds. 

 

• Affordable interest rates

One of the most significant benefits of applying for a loan with an NBFC is that the NBFC home loan rate or any other kind of credit is quite competitive. This allows you to get the desired credit and repay the amount with affordable EMIs. 

 

• Balance transfer facility

All NBFCs allow you to transfer your existing loan from the current lender to a new one and repay the balance amount at a lower interest and reduced EMI. Also, you may get better terms and conditions that would align perfectly with your financial goals. 

 

• Customer support

Another significant benefit of getting an NBFC loan is that you get a dedicated customer support system. You can reach out to the representatives from the lending company with all your queries and for guidance on getting through the loan application process. 

 

Conclusion

NBFCs have transformed the lending industry in India. Since these lenders offer a wide range of loan solutions, they have positioned themselves as the best alternative to traditional channels like banks. 

You can get a personalised home loan, LAP, and other offers at India Shelter, one of the leading NBFCs in India. You can visit the official website to learn more about the loan offering and apply online.