Did you know that Non-Banking Financial Companies (NBFCs) have recently emerged as one of the most trusted financial institutions in India? While Nidhi Company in India is primarily known for lending money and offering fixed deposits, NBFCs have carved out their own niche in the Indian market. There are many ways in which you can use an NBFC to improve your finances.
These institutions provide a range of services including loans, credit cards and various other products designed to help people achieve financial stability. In this blog post, we’ll take a closer look at five different ways that you can make use of NBFCs to reduce your spending and save more money.
Know your options before choosing Nidhi Company as NBFCs:-
Before you choose an NBFC like eNidhi or Nidhi Finances, you should be aware of your options and know the implications of each one. The primary difference between banks and NBFCs is that banks are primarily regulated by the RBI and are required to maintain a certain level of capital, whereas Nidhi Company is regulated by the Indian government’s Ministry of Finance. This means that banks are required to comply with a much higher standard when it comes to customer service, security and transparency.
NBFCs, on the other hand, are not as rigidly regulated, which means that they are able to offer competitive rates and flexible payment terms. NBFCs are not allowed to accept deposits so if you want to earn interest on your money, you will need to head to a bank.
Get a Credit Card from an NBFC:-
Credit cards are a common form of credit that is offered by many banks and NBFCs. The difference between these two options is that credit cards issued by banks are governed by the RBI while those issued by Nidhi Company are regulated by the Department of Financial Services (DFS).
On the plus side, the DFS is much more generous when it comes to approving credit card applications. This means that individuals with poor credit histories are much more likely to be approved for cards issued by NBFCs. However, the interest rates on these cards tend to be significantly higher, and there is no option to defer payment. If you can’t pay your credit card balance in full each month, these cards are not for you.
Borrow Money to invest in the stock market:-
As the stock market has been on a steady rise in recent years, many experts have been advising people to borrow money to invest in stocks. By borrowing money to invest in stocks, you can make a significant return on your investment while repaying your debt in a timely manner.
There are two types of loans that you can use to finance investment in the stock market. You can either go to a traditional lender like a bank or an NBFC or you can use a peer-to-peer platform to borrow money. If you decide to take a loan from a traditional lender, you will be required to pay a certain interest rate.
On the other hand, if you take a loan from a peer-to-peer platform, you will have to pay a certain interest rate that is lower than what a lender would charge you.
Conclusion:-
The Indian economy is growing at a rapid rate, and the demand for financial services is increasing. With such high demand, it’s no surprise that NBFCs have become a very popular option for people looking to borrow money.
When choosing an NBFC, make sure to read through the terms and conditions carefully and compare offers from several institutions. This way, you will be able to make the most of your money and improve your financial situation.
Read more:-