Rise of the NBFCs
NBFCs (Non Banking Financial Companies) are significant in promoting inclusive growth in the country, by catering to the diverse financial needs of bank excluded customers. They supplement the role of the banking sector in meeting the increasing financial needs of the corporate sector, delivering credit to the unorganised sector and to small borrowers.Many unbanked borrowers avail credit from NBFCs and later use their track record to become bankable borrowers.
Customers tend to find NBFCs convenient due to their quicker decision making ability, prompt service and expertise in niche segments.
Over the last 5 years, the NBFC lending book has grown at nearly 18% driven by a deep understanding of target customer segments, use of technology advances, lean cost structures and differentiated business models to reach credit-starved segments.
NBFC + Smart Tech:
A Winning Combination
Advantages of lending through NBFCs and Fintech companies:
- It is a lot cheaper to even set up the business and later, to expand, because of minimal regulations.
- Loans are disbursed quickly and easily, without any hassles.
- Faster speed if you would like to make an international money transfer.
- The documentation process and registration is very minimal because it is not mandatory to seek assurance from a collateral.
- Borrowers who do not have enough CIBIL score have an alternative credit scoring system in case of NBFCs.
- Reliable fraud management, thanks to the technological intervention.
- Financial data is transparent and can be stored flexibly and can be retrieved whenever needed.
Why Arvog leverages Smart-Tech?
6) Future convenience for the customer to seek finance once registered with Arvog.