Things to Know before Taking Home Loans from Non- Banking Financial Companies (NBFC)
Jun 12, 2018 Home Loan
For those who find it difficult to obtain the loan from the banks. Since the credit score is mandatory for the banks to give out home loans, the NBFCs think they can outshine the banks. It was also projected that with so many bad loans mounting, the NBFCs are better at working and giving out loans at the same time.
Recently NBFCs have seen an overall improvement in terms of loan disbursement. They are also regulated by RBI just like any other bank in the country. As per the RBI records, there are 12,000 NBFCs operating in the country.
Recently NBFCs have seen an overall improvement in terms of loan disbursement. They are also regulated by RBI just like any other bank in the country. As per the RBI records, there are 12,000 NBFCs operating in the country.
Recent development
About 9500 of the NBFCs have been categorised high risks, as they haven’t compiled with the provisions of anti- money laundering. The Financial Intelligence Unit (FIU) released the list of the same. FIU is under the finance ministry of the country, to check for frauds and crimes that happen in the Indian economy.
Non compliance by NBFCs
Most of the NBFCs are non complaint since they defaulted on appointing a designated director and principle officer to make sure all the transactions were fair and look into suspicious transactions. The names of these NBFCs are out in open for the public to warn them about the same. The reason these are made available to public so that they can aware themselves of the NBFCs that are non complaint and should refrain from indulging or engaging in any business with them.
When the companies, which are on the defaulters list, comply, their names will be stuck off the list immediately.
When the companies, which are on the defaulters list, comply, their names will be stuck off the list immediately.
Home loans from NBFCs
Most of us are aware of the names Bajaj Finserv, India bulls, LIC Housing, HUDCO, etc. these are some of the NBFCs. Most of the borrowers who cannot get the loan from the banks due to different reasons or those who want faster approval to their loan turn towards the NBFCs. Those who cannot show their income documents or in the cases where the high interests rates do not seem to affect the borrower, NBFCs are the best shot for them.
Some applicants also turn to the NBFCs when they need huge loans and the criteria for the same does not match.
Some applicants also turn to the NBFCs when they need huge loans and the criteria for the same does not match.
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