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Which is Best for a Housing Loan: NBFC or Bank?

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  • Highlights

  • What is an NBFC?

  • Benefits of the NBFC Home Loan

  • Differences Between the Home Loan NBFC and Bank

  • Get Your Home Loan at Bajaj Housing Finance Today

With the value of properties soaring beyond the reach of borrowers, owning a home is gradually becoming an impossible task. However, there are several home loans today that can help us buy property, irrespective of what our budget might be.

The catch here is that borrowers must zero in on the right kind of lender who will meet their financial requirements. Most prospective borrowers usually wonder whether they should get a home loan from a bank or an NBFC. The home loan that are available in the market today all boast of competitive propositions that are attract hordes of customers and borrowers, the key is to select one that is best suited for you. NBFCs are more prone to offer lower interest rates to borrowers, than their banking counterparts. NBFC home loans are also more customisable.

Your decision should only be influenced by the factors that impact both options. NBFC loans have accumulated fame in recent years due to borrowers being aware of its ability to rival home loans from banks. Some borrowers prefer the NBFC home loan because of the requirements involved in the loan application process. But the debate between NBFC vs bank home loans is always tricky.

Some borrowers like banks because of the large loan amount dispensed to them. However, that fact no longer holds true in today’s economy, where leading NBFCs like Bajaj Housing Finance offers substantial loan amounts of Rs.5 Crore and even more, if the borrower meets all the eligibility requirements.

This article will show you comparisons between home loans from NBFC and home loans from the bank, and why Bajaj Housing Finance is the best NBFC for home loans.

What is an NBFC?

A Non-Banking Financial Company is a financial institution that offers limited banking products and services. One major difference between the NBFCs and traditional banks is that the NBFC cannot receive cash deposits from borrowers. This is a privilege that banks have over NBFCs. Nonetheless, NBFCs can offer loans, underwriting services, credit facilities, and so on to customers. In addition, NBFC home loans help borrowers buy, extend or refurbish a parcel of land or home. 

Benefits of the NBFC Home Loan

Below are the benefits of an NBFC home loan:

  • The traditional bank takes longer to process your home loan amount. With a NBFC home loan, the process is rapid, and this allows borrowers to worry less as they get approval on their application in due time. 
  • When applying for a home loan from an NBFC vs bank, know that the NBFC home loan requests reduced paperwork. Also, with less paperwork needed for the loan application, the odds of getting approved is higher.
  • The red tape involved in the loan application process through banks is considerable, but with an NBFC home loan, the procedure is hassle-free. 
  • Successful applicants will not only enjoy excellent NBFC home loan interest rates but enjoy fast disbursement of their loan amount, ensuring that you no longer stay on a long waitlist.

A quick tip: The NBFC home loan interest rate for those without a fine credit rating will be considerably high. 

Differences Between the NBFC Home Loan and Bank Home Loan

Here are 2 major differences between the NBFC home loan and bank home loan:

  • Traditional banks share strong ties with the RBI and they provide rates of interest on home loans after considering the Marginal Cost of Lending Rate (MCLR). This means that when the MCLR shifts, the rate of interest is affected, whether for increment or reduction. For NBFCs, they are not monitored by the RBI, and their NBFC home loan interest rates are based on the Prime Lending Rate (PLR). 
  • Although both banks and NBFCs follow a strict regimen of background checks to certify the honesty of the applicant about prompt EMI payments, the NBFCs offer more accessibility in terms of online home loans.

Get Your Home Loan at Bajaj Housing Finance Today

Fast, easy, and reliable, the Bajaj Housing Finance offer is the best you will find anywhere in India. Not only do we provide a Home Loan Eligibility Calculator and home Loan EMI Calculator, but we also offer a variety of pre-approved home loan options that will really interest you.  

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