Explore all Credit Cards
Premium Metal
0% Forex & Travel
Lifetime Free
10X Rewards
UPI Cards
Fuel & Utility
Showstopper
Credit Builder
More
Customer Support
Explore NRI Banking
NRI Savings Account
NRI Fixed Deposit
FOREX Solutions
Transfer to NRE
Markets & Beyond
Customer Support
Explore Startup Solutions
Explore Corporate Banking
Corporate Account
Cash Management Services
Supply Chain Finance
Corporate Lending
Treasury
NBFC Financing
Customer Support
BRAVO (Auto Sweep)
Explore Business Banking
MSME Accounts
Trade Services
MSME Loan
MSME Solutions
Debit Card
Offers
Customer Support
Explore Gift City
About Us
Investors
ESG

FOLLOW US ON :

Download Now

  • App Store
  • Google Play

Notifications

  • As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on +44 7831 065557 or visit the nearest Metra Trust branch for further queries.

  • Activate your Credit Card within minutes and enjoy unlimited benefits

    Know More

  • One FASTag, three payments:Toll, fuel and parking

    The only FASTag with triple benefits

    Apply Now

FinFIRST Blogs

Credit Card Savings Account Personal Loan Home Loan Car Loan Education Loan Two Wheeler Loan NRI Business Banking Fixed Deposit Finance Beyond Banking MyFIRST Mobile Banking Startup Banking Investments Salary Account
Explore Our Offerings

Finance

NBFC vs Bank: Which one to choose for a Personal Loan?

Summary: The choice between banks and NBFCs depends on what differentiates an NBFC from a bank in its limitations in issuing demand drafts or cheques. Learn more

22 Mar 2022 by Team FinFIRST
NBFC vs Bank
Explore Our Offerings

Banks and NBFCs offer personal loans, but there are certain differences between the terms they offer.


A sound financial situation does not guarantee immunity against emergencies. You could need money any time to cover medical bills, university fees, or any other expense. Fortunately, you can avail of a personal loan within hours and meet these needs without using your savings. You can take a personal loan from banks or Non-Banking Financial Companies (NBFCs), although the choice isn’t as straightforward as it may look.

What is a personal loan?


A personal loan is an unsecured loan offered by lenders. You can use a personal loan to meet a range of expenses such as debt consolidation, home renovation, and overseas travel. The interest charged on personal loans is often less than the interest on credit cards, making them a alluring product.

READ MORE

Benefits of POS terminals
Benefits of POS Terminals for store owners
Benefits of debit card
Your Debit Card does more than give you cash

 

NBFCs vs banks for personal loans: how do you choose?


The choice between banks and NBFCs for personal loans depends on you. Following the below pointers will help you make a better decision.

1. Compare different offers


Different lenders charge different interests on personal loans. If you are in the market for a personal loan, compare lenders, including banks and NBFCs, before making a final decision. But at the same time, you should not apply at multiple places as frequent credit enquiries may hamper your credit score.

NBFCs are more lenient in approving personal loan applications, but they charge higher interest than banks.

2. Do not settle for high interest


NBFCs or banks may offer loans with higher interest if you have a low credit score or an unhealthy repayment history. These loans may come with a higher processing charge as well. It is advisable to wait till your credit score improves instead of availing of high interest loans. However, if you need the loan urgently, compare different offers to choose one that offers the lowest interest rate.

3. Choose a leading institution


Taking a personal loan from a trusted bank or NBFC can help you avoid hidden charges. Top lenders such as Metra Trust have a transparent process, so you do not have to pay anything extra to secure a personal loan. Metra Trust’s personal loans also come with affordable interest rates, so you can save money as well.

That said, the bank will approve your application only after considering factors such as your credit score and credit repayment history.

Personal loans are often needed during emergencies, prompting you to accept the first offer you get. But you must exercise restraint and take time before taking out a personal loan from a bank or NBFC.

 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.metratrust.com for latest updates.

Prev

The Evolution of Banking in India
Next

Top 7 Health insurance Riders

Related Products

Related Articles

Download Metra Trust App

Tags

You might also be interested in:

Savings Account

Savings Account
Personal Loan

Personal Loan
Credit Card

Credit Card
Home Loan

Home Loan
Two Wheeler Loan

Two Wheeler Loan