Cash crunch during times of need might give you the worst experience. When you have bad times, it is often seen that even the near and dear ones refuse to help. During such time tested periods, banks and NBFCs have always proved their worth. Though the interest rates might different in both type of debt financing, yet they are the most reliable source. In this blog, as a reader, you will come across the insights that will help you take a fair decision when you are planning for debt financing.

For Debt Financing, Which one is Better: Banks or NBFCs

Processing Time

The NBFCs more or less follow a quick disbursal scheme. Under the quick disbursal model, they engage in very little paperwork. As a result, in case if you are applying to a NBFC instead of a bank, the loan disbursal time period is less as compared to bank, yet the quick processing of the loans makes it easier and convenient for the borrower to look forward to them.

Low or Bad CIBIL Loans

Banks are always instructed to lend to those only with a high cibil score. But, in case of nbfc, people with even low cibil score can get the loan, and the interest rate is depends on multiple factor like cibil score, documents verification and other factor.  .

It is entirely up to the individual who has been planning to go for debt financing, if they wish to access the cash in no time, NBFC is the best option.