The limitless world of the World Wide Web(WWW) today offers every service imaginable. From buying clothes online to buying cars and property online, the internet hasn’t really left anything out of its ambit, not even loan and insurance services. Yes, it is the 21st century and with the help of internet it is possible for you to obtain a loan sitting in the comfort of your home.
Common knowledge says that the information boom has facilitated convergence of interest rates the world over- or so it appears. While on the surface, the interest rates offered for diverse loans by numerous banks look homogenous; but in reality they are often very disparate! The interest you earn on your deposits with banks or the interest rates applicable on various kinds of loans are different in different banks. Imagine the arduous task of going a bank one at a time before you finalize on from where to borrow credit. It is very likely that you will be rendered confused and unable to grab the best deal.
To overcome these complexities, online portals like Bank Bazaar, Fundera etc have been formed. So what do these online loan marketplaces do? They enable prospective borrowers to shop for loans just like they buy their other things online! They empower you, the borrower, to apply to multiple banks with the click of a button, making the entire process effortless and hassle free.
The loan intermediaries discussed above cater to salaried people and established businesses having a steady income stream and those able to furnish proofs. But what about borrowers who aren’t served by such banks? What about those business startups who have a somewhat faulty credit history and moderate repayment capacity but show a promising future? Or SMEs which lack collateral and are thus unable to convince banks to lend to them? VayTienOnlineEB
This is where the Non Banking Finance Companies (NBFCs) come into the picture, making the financial markets more inclusive and tolerant. NBFCs do not hold banking licenses and do not provide checking facilities. Nonetheless, they are indispensable to credit markets as they are instrumental for bridging the credit unavailability void created by traditional lenders. NBFCs are known to assume greater risk and are often more flexible to the needs of their clients.