Why are NBFCs great for borrowing loans amid COVID-19 pandemic?

1. Why are NBFCs great for borrowing loans amid COVID-19 pandemic? As the Coronavirus pandemic continues to rampage throughout the world, it’s leaving plenty of destruction in its wake. All the industries have been shutdown to prevent the further spread of the infection and real estate industry is no exception to that. Many of the real estate projects have been left unfinished as the labourers have returned to their homes. Things are not looking good for the real estate sector but for the customers, this could be a blessing in disguise. Since the work has slowed down, it is quite likely that post-lockdown the prices of properties would fall in Delhi and therefore more people would be willing to take a home loan in Delhi and other metro cities of the country. Many people who have always wanted to buy their own home would be able to avail loans from banks or NBFCs (Non-Banking Financial Companies) to fulfil their lifelong dream. Besides, even during tough times like these, real estate is still a great investment opportunity. According to a survey published by the Economic Times, more than 32% of the respondents believed that despite all the problems that have emerged because of the lockdown, real estate still is the best option for investment. Everyone dreams of living in their own house and NBFCs can help them achieve their goal. Nowadays, it is easier for borrowers to apply for a home loan in Delhi once they’ve met the eligibility criteria. People are often confused whether they should opt for the loan from the bank or the NBFCs. According to a recent Financial Stability Report by the Reserve Bank of India, NBFCs have recently been performing much better than the traditional banks in terms of loan distribution and they’ve seen a notable increase in customer satisfaction by 15% and much like the banks, they allow their customers to take loan against property as well. There are several advantages that an NBFC has over the traditional banks. Some of them are as summarised below: 1.Loan sanctioning process is much faster and efficient as compared to the traditional banks. 2.The terms and conditions of lending and borrowing are more flexible and allow the borrower to take loan as per his/her convenience. 3.The NBFCs offer very enticing features and profitable solutions for the borrowers – both new and those who exist previously. 4.The loans that NBFCs offer are customizable to a large degree and these companies offer a wide range of other financial products as well. 5.Their customer centric approach makes them a popular option and increases customer satisfaction, which is paramount in running a financial business. 6.NBFCs are capable of lending the same amount of loans as the traditional banks at much cheaper interest rates as well.