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Micro, small, and medium enterprises (MSMEs) have relied on banks for all their financial needs for a long time. However, the stringent eligibility criteria, need for collateral, and lengthy paperwork has often kept small business owners from acquiring the required funds at the right time.
The advent of non-banking financial companies (NBFCs) has enhanced the scope for entrepreneurs through their customer-friendly policies and a more lenient documentation process. The benefits presented by NBFCs have enabled small business owners to expand their businesses.
Wondering if you should apply for a business loan from an NBFC? Here are some of the benefits that can help you make an informed decision:
- Swift Disbursement
When you apply for a business loan from a leading NBFC like Kinara Capital, your loan amount will be credited in just 24 hours. This is highly advantageous for entrepreneurs who urgently need money to either stabilize or expand their operations. From checking the eligibility to uploading the documents and getting approval, the best NBFCs have a 100% digital application process that ensures quick disbursement.
- Reduced Wait- times
Once your loan amount is approved, NBFCs make sure it is credited into your account in just a few working days. Furthermore, some reputed NBFCs do not charge any penalty if you want to foreclose the loan after paying a few instalments. This is beneficial for businesses that are doing well and want to pay off their liabilities upfront.
- No Need for Collateral
When you apply for a business loan from an NBFC like Kinara Capital, there is no need for any collateral against the loan. This is one of the most significant advantages of opting for a reputed NBFC like Kinara. Regardless of the nature of your operations, there is no requirement for collateral, and you can get all your loan queries settled by a professional loan officer.
The Role of NBFC in the Finance Sector
Relying on just a few traditional financial institutions to apply for a business loan has proven costly for various small establishments across the country. The idea of NBFCs has evolved to improve financial accessibility and to fill the significant gaps in credit availability.
NBFCs play an essential role in the finance sector by addressing the needs of those business owners who do not have access to traditional credit from institutions like banks. Unlike banks, which are registered under the Banking Regulation Act, 1949, NBFCs are registered under the Companies Act, 1956 and are regulated by the Reserve Bank of India.
NBFCs act as the financial intermediaries involved in the business of delivering credit, accepting deposits, and transforming the economy’s financial resources into capital. They work towards making financial services accessible to everyone.
Therefore, small business owners can turn to NBFCs to fulfil their financial needs. You can choose from different types of loans for different purposes such as asset purchase, working capital, and financial support for women entrepreneurs.
Applying for a Business Loan from an NBFC
When you decide to apply for a business loan, check out the website of leading fintech firms like Kinara Capital. Their digital loan application process is simple and can be completed entirely on their website or through their myKinara mobile app.
The process starts with a 1-minute eligibility test. Once that is cleared, you can take the application forward on the website or app, or have a Kinara Capital loan officer contact you and brief you on further requirements. The trained professionals will offer you practical guidance on the entire process in your regional language to avoid any communication gap.
Once all your loan-related queries are addressed, you will be required to upload all your necessary documents for verification. The documents would include your business registration proof, Adhaar card, PAN card (personal or business), Udyam registration, and twelve-month bank statement.
As soon as everything is verified and approved, you can expect to obtain your loan amount in your account in 24 hours. So, assess your business requirements and apply for a business loan today!
