{"id":13619,"date":"2021-01-06T10:26:13","date_gmt":"2021-01-06T10:26:13","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=13619"},"modified":"2021-01-06T10:26:51","modified_gmt":"2021-01-06T10:26:51","slug":"top-reasons-to-avail-an-sme-loan-from-nbfc","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-business\/top-reasons-to-avail-an-sme-loan-from-nbfc\/","title":{"rendered":"Top Reasons to Avail an SME Loan from NBFC"},"content":{"rendered":"\n<p>Taking SME finance, which is a type of business loan from a banking institution, is a serious decision. At times, the process can be slow, and paperwork can be extensive. This is where NBFCs can come to your aid. If you don\u2019t know what NBFCs are, check out our next section.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are NBFCs?<\/strong><\/h2>\n\n\n\n<p>NBFC stands for Non-Banking Financial Companies, which are financial institutions that provide certain banking facilities but don\u2019t possess a banking license by RBI. However, that does not mean that these institutions are not safe or illegal as they have been recognised by RBI and are registered under the Companies Act, 1956.<\/p>\n\n\n\n<p>These institutions provide services such as loans and credit facilities but are not bound by the same rules and regulations as banking institutions. These are some examples of Non-Banking Financial Institutions:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Investment Banks<\/li><li>Money Market Funds<\/li><li>Chit Funds<\/li><li>Insurance companies<\/li><li>Mortgage Lenders<\/li><li>Hedge and Private Equity Funds<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Reasons to avail an SME loan from NBFC:<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Flexible interest rates<\/h3>\n\n\n\n<p>If you are considering an SME loan for your business, start by looking for a lender that can provide lower rates of interest. Several NBFCs offer <a href=\"https:\/\/tata-blog.osian.dev\/business-loan.html\">business loans<\/a> for SMEs at competitive interest rates. In addition, they can also offer more flexible EMI payment terms.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Relaxed eligibility criteria<\/h3>\n\n\n\n<p>One of the key reasons to avail a loan from an NBFC is that unlike banking institutions, NBFCs have easier eligibility criteria. This obviously makes the whole borrowing process faster and simpler.<\/p>\n\n\n\n<p>Moreover, if you have a low credit score, then your chances of getting a loan are much higher at an NBFC than a banking institution. Therefore, a small business owner across various verticals can easily get a loan for business approved by an NBFC and ensure they don\u2019t run out of SME working capital.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Quick disbursal<\/h3>\n\n\n\n<p>Banking institutions generally take a long time to sanction a loan, as the process requires extensive paperwork. Owning a small business means that you might be in urgent need of a loan and thus, require speedy processing and approval.<\/p>\n\n\n\n<p>In this case, reaching out to an NBFC is a great option as they require minimal documentation and have relatively more relaxed eligibility criteria. This is the reason NBFCs are much quicker in their process and provide quick disbursal of <a href=\"https:\/\/tata-blog.osian.dev\/business-loan\/msme-sme-loan.html\">SME loans<\/a> to borrowers.<\/p>\n\n\n\n<p style=\"color:red\"><strong>Additional Read:<\/strong>&nbsp; <a href=\"https:\/\/tata-blog.osian.dev\/blog\/business-loan\/guide-for-first-time-sme-loan-applicants\/\">Guide for First-Time SME Loan Applicants<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Looking for the Best SME loan provider? Tata Capital is at your Aid<\/strong><\/h2>\n\n\n\n<p>Tata Capital is one of India\u2019s leading Non-Banking Financial Company registered with the Reserve Bank of India. We offer fees and fund-based financial services and have created a brand that is synonymous with trust.<\/p>\n\n\n\n<p style=\"color:red\"><strong>Additional Read:<\/strong>&nbsp; <a href=\"https:\/\/tata-blog.osian.dev\/blog\/business-loan\/benefits-of-applying-for-an-sme-loan-by-tata-capital\/\">Benefits of applying for an SME loan by Tata Capital<\/a><\/p>\n\n\n\n<p>So, what are you waiting for? Get SME finance for your business at the best <a href=\"https:\/\/tata-blog.osian.dev\/vehicle-loan\/used-car-loan\/interest-rates-and-charges.html\">business loan interest rates<\/a> with Tata Capital. We also offer loans with minimal paperwork and flexible repayment terms. To know more, get in touch with us today!<\/p>\n\n\n\n<div class=\"wp-block-group alignwide\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background\" href=\"https:\/\/tata-blog.osian.dev\/online\/loans\/business-loans\/home\">Apply Now<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Taking SME finance, which is a type of business loan from a banking institution, is a serious decision. <\/p>\n<p><a href=\"https:\/\/tata-blog.osian.dev\/blog\/business-loan\/top-reasons-to-avail-an-sme-loan-from-nbfc\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":13620,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[],"class_list":["post-13619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SME Loan from NBFC: Top Reasons to Avail - Tata Capital Blog<\/title>\n<meta name=\"description\" content=\"SME Loan from NBFC - Here&#039;s Why NBFCs are Better Than Traditional Banks for Business Loans. Read here to know the Pros and Cons of taking SME Loan form NBFCs!\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SME Loan from NBFC: Top Reasons to Avail - Tata Capital Blog\" \/>\n<meta property=\"og:description\" content=\"SME Loan from NBFC - Here&#039;s Why NBFCs are Better Than Traditional Banks for Business Loans. Read here to know the Pros and Cons of taking SME Loan form NBFCs!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/top-reasons-to-avail-an-sme-loan-from-nbfc\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-06T10:26:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-06T10:26:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2021\/01\/sme-loan-from-nbfc.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tata Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tata Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/top-reasons-to-avail-an-sme-loan-from-nbfc\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/top-reasons-to-avail-an-sme-loan-from-nbfc\/\",\"name\":\"SME Loan from NBFC: Top Reasons to Avail - Tata Capital Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\"},\"datePublished\":\"2021-01-06T10:26:13+00:00\",\"dateModified\":\"2021-01-06T10:26:51+00:00\",\"author\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a\"},\"description\":\"SME Loan from NBFC - Here's Why NBFCs are Better Than Traditional Banks for Business Loans. 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