Benefits of Taking a Loan from an NBFC

Students starting on their journey to study abroad often encounter financial hurdles as they endeavour to fulfil their educational aspirations. Traditionally, many turn to banks or seek support from their families to tackle these challenges. However, a valuable yet often overlooked alternative in this landscape is the emergence of non-banking financial companies (NBFCs).

These NBFCs have stepped into the fray, offering a seamless and efficient solution to the financial obstacles faced by students aspiring to pursue education overseas. In contrast to the more conventional routes of approaching banks or relying solely on familial support, NBFCs provide a dedicated avenue for securing study abroad loans with remarkable ease.

But what are NBFCs?

Non-Banking Financial Companies (NBFCs) are financial institutions that offer a wide range of banking services identical to those offered by traditional banks. These organisations provide a range of financial services, including advances and loans, as well as the purchase of government or corporate sector-issued shares, equities, bonds, debentures, or other comparable securities.

However, they differ from banks in certain aspects. Some common functions of NBFCs include providing loans and advances, asset financing, investment advisory services, retirement planning, money market activities, and various other financial services. NBFCs significantly serve specific financial needs that traditional banking institutions might not entirely address.

Benefits of an education loan from a non-banking financial corporation:

"Students seeking study abroad loans from Non-Banking Financial Companies (NBFCs) can access a plethora of benefits designed to ease the financial burdens associated with international education. These advantages encompass a wide spectrum of support, making NBFCs a compelling choice for financing educational pursuits overseas.

• Flexible Loan Amounts: NBFCs stand out for their tailored approach, offering individualized loan amounts covering various educational expenses like tuition fees, accommodation, travel costs, and more. This flexibility ensures that students can access funds aligned with their specific financial needs.
• Competitive Interest Rates: Renowned for their competitive interest rates, NBFCs often provide lower rates compared to traditional banks. These favorable rates alleviate the financial strain on students, facilitating a smoother repayment process.
• Quick Loan Processing: NBFCs prioritize efficient loan processing, enabling swift approvals and disbursals. This expeditious approach ensures timely access to funds, crucial for students planning their education abroad.
• Customized Repayment Plans: To alleviate the financial burden on students and families, NBFCs offer personalized repayment plans. These plans often include flexible interest rate installments, grace periods, and extended repayment terms, accommodating diverse financial situations.
• No Collateral or Minimal Requirement: Some NBFCs offer overseas education loans without requiring collateral, enhancing accessibility for students without substantial assets. This opens up opportunities for those facing challenges in providing collateral security.
• Accessibility: NBFCs have widened their reach, ensuring accessibility for students in remote areas or individuals lacking easy access to traditional bank branches. This increased accessibility democratizes access to educational funding.
• Additional Support Services: Beyond loans, NBFCs extend supplemental services such as visa processing assistance, guidance on educational institutions, and related matters. These services offer comprehensive support, aiding students throughout their educational journey.

Considering these benefits, seeking assistance from an education loan experts like Education Loan Guru—a specialized overseas education loan company—can be advantageous. Such entities understand the nuances of study abroad financing and can provide tailored solutions, guiding students towards securing the necessary financial support for their educational aspirations.

Expanding on the benefits and the role of an education loan guru emphasizes the multifaceted support available for students navigating the complexities of financing their international education.

How are NBFCs different from banks?

Non-banking financial companies (NBFCs) and banks both provide study abroad loans but differ in certain aspects. Below are some key differences between both:

• Rigidity vs. Flexibility: Banks may have more stringent eligibility criteria and standardised processes for loan approvals, while NBFCs might offer more flexible terms, faster processing, and tailored solutions, especially for students with unique financial circumstances.
• Interest Rates and Fees: NBFCs might offer competitive interest rates and lower processing fees compared to banks. Moreover, they might also provide more customisation in loan structures, repayment plans, and collateral requirements.
• Accessibility: Banks usually have a wide network of branches that are easily accessible by a larger population. However, on the other hand, NBFCs specialise in targeting a more specific segment of people from different niches. So, students need to look at their requirements, and considering them, they can consult either banks or NBFCs.
• Collateral Requirements: Banks generally have stricter collateral requirements for larger loan amounts, whereas some NBFCs might offer unsecured or partially secured loans, making it easier for students without substantial assets to obtain financing.
• Loan Size and Tenure: Banks might have higher maximum loan limits and longer repayment tenures compared to NBFCs, which could be more suitable for students requiring substantial funds or longer repayment periods.

Conclusion:

Non-banking financial companies (NBFCs) have emerged as a ray of hope for students who are aspiring to study abroad. These non-banking financial institutions offer a range of advantages to students, from flexible loan amounts and competitive interest rates to quicker processing and tailored repayment plans.

The contrast between NBFCs and traditional banks reveals nuanced differences in eligibility criteria, interest rates, collateral requirements, accessibility, and loan tenure. While banks boast wider accessibility and sometimes larger loan sizes, NBFCs shine in their flexibility, competitive terms, and specialised offerings.

Ultimately, the choice between NBFCs and banks for study abroad loans depends on individual requirements and preferences. However, students who are planning to study abroad and need an education loan abroad can consult the Education Loan Guru. To get your instant student loan online, contact Education Loan Guru.