Every business needs financing from time to time to withstand unpredictable challenges and day-to-day expenses. Loans are available from banks and NBFCs (Non-Banking Financial Corporations). Banks and NBFC’s both offer loans of various types to all types of businesses.
How soon a loan is disbursed is usually referred as “TAT” – Turn Around Time. TAT is the time from application to disbursal. The turn around time for banks is typically three week or more; sometimes as much as two months or more.
However, for MSMEs getting a bank loan is not easy due to long paper works, credit score issues, and more. In such a case, reputed and reliable NBFCs like Red Fort Capital is the best option for small to medium businesses to secure a business in less than 24 hours.
Let’s try to understand both the financial lenders:
What are NBFCs?
NBFCs are non-bank financial companies that offer financing services without the need for any banking license. They are private institutes that are supervised by RBI and other government agencies. NBFCs play an important role in meeting the credit demands of small to medium businesses that are unmet by traditional banks. They look beyond your business’ credit history and use a holistic approach to assess your creditworthiness for funding.
What are Banks?
A bank is a financial institution that holds a banking license and can accept deposits as well as provide loans. There are many scheduled banks like central and co-operative banks. Commercial, Small Finance, Payments, and other types of banks are unscheduled. The RBI regulates all banks.
Why Choose NBFCs over Banks for Business Loan
In recent years, NBFCs have become as popular as traditional banks in providing loans to industries and businesses. They are helping many small to medium enterprises to expand their dreams. Where the banks fail to cater to the need of growing small-scale industry, the need for a business loan from NBFC arises.
The following points will explain how the business loans from NBFC in India is changing the situation of companies for the better.
Do you need a loan urgently or have the time to evaluate options:
Flexible Eligibility Criteria
This is one of the best advantages of choosing NBFC over the bank. Most banks have tight lending criteria for giving business loans. They follow a strict verification process and documentation for approving the loan applications.
But, with NBFCs, this is not the case. They have flexible eligibility criteria for approving the business loans for MSMEs. The main aim of reputed NBFCs like Red Fort Capital is to offer the best solution to the customer in the minimum possible time. When you apply for a business loan with Red Fort Capital, we approve it within 24 hours.
Holistic Credit Evaluation Process
Similar to banks, the NBFCs do not rely on the credit score of the companies or the business owner. Red Fort Capital has its own credit evaluation system to check the credibility of the borrower on a holistic approach. This is why it is one of the best options for MSMEs to secure the capital they need for day-to-day work. Because of their hassle-free process and exceptional customer services, NBFCs are progressively replacing traditional banks, especially for businesses.
Competitive Interest Rates
Most small to medium companies are looking for a loan at competitive interest rates, this is where NBFCs are helpful. As compared to traditional banks, reliable NBFCs offer business loans at the best interest rates. The interest rates charged by NBFCs are lower because they are stipulated as per the Prime Lending Rate (PLR).
And PLR is not regulated by the Reserve Bank of India (RBI). In addition to this, loan processing fees and other charges levied by NBFCs are also a bit lower as compared to traditional banks.
A Pre-Approved Loan Limit
Several NBFCs provide loans to small to medium businesses with pre-approved loan limits. It means you can withdraw the funds from the approved loan limit whenever you require it.
The important thing to note here is that interest is charged only on the used amount by the business owner. This ensures that the business is never short on funds, and companies don’t have to make fresh loan applications.
Complete Digital Process
NBFCs have everything maintained digitally. There is very little need for any physical documentation or hard copies as everything is done online. Many NBFCs have combined finance with technology to give customers a quick and stress-free solution to their financial needs.
Unlike banks, business owners don’t need to wait in queue for long hours for financing. All you have to do is visit the Red Fort Capital website and apply online for your business loan. You can upload the soft copies of the desired documents and get the loan approval within 24 hours.
Finance Loans from Red Fort Capital
Red Fort Capital is a reliable and reputed NBFC that has been financing growth-oriented credit to Industrial users. We are a leading investment platform and trusted partner to the world’s top institutional investors. The firm has multiple financing vehicles, including its market leader, Private Equity Funds, Red Fort Principal Investing Group, and a Regulated investment-grade NBFC in India.
With a strong investment portfolio, the company believes in quick deal closure, pragmatic returns, and long-term partnerships. Also, we offer different kinds of loans to business owners to help them grow their businesses.
Here are the Successful Loan Approvals of Some of Our Clients:
Case Study 1: Plastic manufacturing firm
One of Red Fort Capital’s borrowers is a plastic film manufacturer who needed a working capital loan to buy equipment. The company needed EMI flexibility & principal deferment. To help them, we provided a customized EMI schedule, created a principal reserve, and funded the loan in just ten days.
Case Study 2: Transportation company
A Transport company based in Jaipur with one of the largest fleets in the region approached Red Fort Capital for financing needs. The company has around 700 employees, and they pay their salaries in cash. Being in the transport business, they get payment after 60 days from clients after delivering the goods. So, the company is struggling with its daily expenses due to gaps in the payments it receives from clients.
To cover day-to-day needs for fuel, buy new trucks, etc., the company approached the bank for a business loan. But unfortunately, they were not able to get financing from banks as they have no NPA. When they approached Red Fort Capital, we approved the 8 Cr loan demand of the transport firm within a week. The deal was closed in under 5 working days.
Case Study 3: Construction Firm
Red Fort Capital approved a term loan of ₹20.5 Cr for the construction of a multi-tenanted industrial park & land acquisition. The company needed the amount to buy construction material. We processed the loan amount within a week. Also, the EMI is scheduled according to the convenience of the owner of the construction company.
Applying for a business loan with Red Fort Capital is very easy and quick. WhatsApp at +91 98196 86107 or apply at https://redfortcapital.com/apply/