Comparing NBFCs vs. Banks for Your Personal Loan in Noida
Traditional banks and Non-Banking Financial Companies (NBFCs) are your two main choices when you need a personal loan in Noida . Despite having similar goals, their lending policies, qualifying requirements, and loan features can differ greatly. Selecting the ideal financial partner for your requirements requires an understanding of these differences. The Fundamental Difference: How They Operate Although they function under distinct legal frameworks, banks and NBFCs are fundamentally both subject to Reserve Bank of India (RBI) regulation. The Banking Regulation Act of 1949 governs banks, and they are able to take deposits from the general public. They are very safe because of this regulatory framework, which also frequently enables them to provide lower interest rates. In contrast, NBFCs are registered in accordance with the 2013 Companies Act. Although they provide many of the same services as banks, including credit facilities and loans, they are unable to take demand deposits, whic...