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NIFTY 50·25,030.35+2.01%SENSEX·81,028.02+2.17%BANK NIFTY·59,086.00+2.27%RELIANCE·1,320.00+0.50%HDFC BANK·788.25+3.72%ICICI BANK·1,571.20+4.75%BHARTI AIRTEL·2,107.20+2.44%INFOSYS·1,181.40+1.20%L&T·4,117.70+1.67%TCS·2,498.50+0.11%ITC·283.15+1.54%SBI·1,018.50+1.20%AXIS BANK·1,322.90+3.35%NIFTY 50·25,030.35+2.01%SENSEX·81,028.02+2.17%BANK NIFTY·59,086.00+2.27%RELIANCE·1,320.00+0.50%HDFC BANK·788.25+3.72%ICICI BANK·1,571.20+4.75%BHARTI AIRTEL·2,107.20+2.44%INFOSYS·1,181.40+1.20%L&T·4,117.70+1.67%TCS·2,498.50+0.11%ITC·283.15+1.54%SBI·1,018.50+1.20%AXIS BANK·1,322.90+3.35%

Loan from NBFC vs Banks, how to choose?

10 days ago · Lumic

Choosing between NBFC and bank loans in India, comparing APR, fees, and repayment options.

Lumic

10 days ago

Loan from NBFC vs Banks, how to choose?

IMPACT BULLETS

Check the APR, processing fees, insurance and total repayment. A lower advertised rate may not mean a cheaper loan

NBFCs may be more flexible for self-employed or thin-credit borrowers, but can charge more

Know your exit and complaint options. Check prepayment charges, fixed vs floating rates especially for app-based loans

A cheaper advertised loan may not always be the best option

LR·10 days ago

Choosing between a loan from a Non-Banking Financial Company (NBFC) and a traditional bank can be tricky. This 'Fin Shorts' piece unpacks the key differences to help you decide. While advertised interest rates might seem attractive, it's crucial to look beyond them. We'll guide you through checking the Annual Percentage Rate (APR), processing fees, insurance costs, and the total amount you'll repay. NBFCs often offer more flexibility, especially for self-employed individuals or those with limited credit history, but they might come with higher charges. Understanding your exit options, including prepayment charges and the implications of fixed versus floating rates, is vital, particularly with the rise of app-based loans. Make an informed financial decision for your borrowing needs in the Indian market.

Choosing between a loan from a Non-Banking Financial Company (NBFC) and a traditional bank can be tricky. This 'Fin Shorts' piece unpacks the key differences to help you decide. While advertised interest rates might seem attractive, it's crucial to look beyond them. We'll guide you through checking the Annual Percentage Rate (APR), processing fees, insurance costs, and the total amount you'll repay. NBFCs often offer more flexibility, especially for self-employed individuals or those with limited credit history, but they might come with higher charges. Understanding your exit options, including prepayment charges and the implications of fixed versus floating rates, is vital, particularly with the rise of app-based loans. Make an informed financial decision for your borrowing needs in the Indian market.

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