The small and medium businesses have become one of the greatest strengths of the Indian economy and they contribute a huge portion to the Indian GDP. But unlike the large firms, the funding of the MSMEs or the SMEs is very low since they are generally owned by single owners or a group of individuals. That is why the importance of business financing has doubled in the last few years. With so much development in the small business sector, a new term has received huge popularity among the Indian Diasporas. Yes, we are talking about the sudden popularization of the NBFC’s. Though the concept of NBFC’s was highly popular in the European Union but the termed has gained massive importance in India in last few years.
What are NBFC’s?
NBFC is the abbreviated form of Non-banking Financial Company. These are actually non-banking firms which play an instrumental role in entrepreneurship, debentures, empowerment, bonds, wealth management, funding for education and endorsements. NBFC’s are transforming the financial structure of the nation; they are providing the small and medium enterprises with micro business loans, empowerment loans and business loans so that the SME sector can really move forward towards success without having to quit for low capital.
NBFC’s are actually of four different types and every type has its own function.
- Infrastructure finance
- Infrastructure debt
- Asset finance
Why are the NBFCs getting so much important in the Indian business domain?
This question has been raised by many people and it is one of the hottest topics for debate in the country among the financial experts. Well, the main advantage of the NBFC’s is that the start-up businesses and aspirants who want to join the business real can get a quick business loan from the NBFC’s without any hassle. Thus, if you are considering making your mark in the world of business but losing your confidence due to low capital then take the aid from a NBFC and get your loan sanctioned within few minutes. The process is completely hassle-free and if your financial record is transparent then your loan will be easily sanctioned. Just produce the right documents in front of the authority to get the funding you are seeking.
Top Benefits that you will get from the NBFC’s
There are literally several benefits of the NBFC’s; from approving the loans quickly to low interest rates that it is not possible for anyone to list all the benefits that a non-banking financial firm offers. Hence, here are some of the most significant benefits that the NBFC’s offer:
- NBFC’s offer a completely tension free disbursal
- Acknowledges the value of the properties highly while sanctioning the loans
- The most important thing that all the small business owners look for is the low interest rate and the non-banking financial companies are the best organization’s which offer the small business loans against very low interest rates.
- Quick approval of loans
- You will be able to avail the loans from the NBFCs easily from your home through their online website or visit the office.
- The loans are provided with as well as without security.
The NBFC’s are ahead of the other banking organizations since they do not consider the statutory charges like stamp duty or registration duty differently. And you will be able to get your loan sanctioned by your financial institution within a very short time without much paper works and guarantees.