The NBFC sector is growing at the cost of banks in India, which are saddled by bad loans and poor profitability. The Advent of NBFC makes it easier for the common people to avail loan facility.
Getting a loan in India is no more a tough task if you meet the eligibility criteria but the main concern among many is to decide whether to choose a bank or NBFC for loans in India. According to research and studies it is proved that NBFCs are outperforming banks. The continued better performance from NBFCs has given rise to an uptick of 15% customer satisfaction as compared to the banking customers. The same is agreed by the RBI according to the recent Financial Stability Report. Banks and Non-Banking Financial Companies (NBFCs) are financial intermediaries and the services offered by them are pretty much the same. This is one of the main reasons why most borrowers are in dilemma when it comes to choosing one over the other for loans.