Small and Medium-sized Enterprises (SMEs) in India have become significant contributors to the country’s economy. While there are many opportunities for growth in the sector, most entrepreneurs lack the financial support required to run an SME effectively. Getting an SME loan can help, but with a lot of options available, choosing the right lender can often be confusing. These days, apart from banks, Non-Banking Financial Companies (NBFCs) are a popular option to help SMEs meet their financial requirements.
What are NBFCs?
NBFCs are institutions that can provide banking services without any banking license. These companies offer multiple services like extending loans, underwriting, merger activities, money markets, and currency exchange. Unlike traditional banks, NBFCs do not come under the regulation of state or federal authorities. For example, Mahindra Finance is one of the top Indian NBFCs offering a wide range of services.With its affordable SME loans solutions, you can enhance your business and prevent a financial crunch.
How NBFCs help businesses expand their profits
Before NBFCs gained prominence, micro, small, and medium enterprises (MSMEs) relied on banks for their business loan requirements. However, today,these enterprises prefer NBFCs forfinancial assistance. Loans from NBFCs help SMEs to develop their businesses quickly and increase their profits. SMEs choose NBFCs for their funding needs as these institutions:
- Require simple MSME loan documents for financing
- Have relaxed regulatory norms
- Offer easy collateral requirements for getting a loan
Benefits to apply for business loans from NBFCs
- Quick approval of your loan application compared to most traditional banks
- Flexible SME loan eligibility criteria and documentation, ensuring you get a business loan without any hassles
- Customized loans offered to SMEs, enabling you to get the financing and services as per your requirements
Moreover, NBFCs allow Aadhar-based Know-Your-Client (KYC) as permitted by the Finance Ministry.This means, if you have already submitted your KYC at a bank, there is no need for providing it to an NBFC while getting a loan.
If you are looking for a small business loan, NBFCs are your best bet. You may review the performance history and interest rates of different NBFCs to determine which institution suits your needs. You may consider Mahindra Finance for fast loan approval to enhance your business growth. Visit their website to apply for an SME loan today.