By continuing, you agree to LoansJagat's Credit Report Terms of Use, Terms and Conditions, Privacy Policy, and authorize contact via Call, SMS, Email, or WhatsApp
Disclaimer: The information published on LoansJagat is intended for general informational and educational purposes only and should not be considered financial, legal, or investment advice. Interest rates, loan terms, statistics, and other data may change over time and may vary by lender or source. Please verify the latest information and consult a qualified financial advisor or the respective Bank/NBFC before making any financial decisions.
Subscribe Now
About the author
LoansJagat Team
‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.
Related Blog Post
Simplify All Your Loans Into One Affordable EMI
Customers Served
Debt Consolidated
1200+ Reviews
Locations in India
Club all Loans & Credit Card Bills into Single EMI
Quick Apply Loan
Consolidate your debts into one easy EMI.
Takes less than 2 minutes. No paperwork.
10 Lakhs+
Trusted Customers
2000 Cr+
Loans Disbursed
4.7/5
Google Reviews
50+
Banks & NBFCs Offers
Other services mentioned in this article
Key Takeaways
Bonus Tip: NBFCs now handle over ₹60 lakh crore in assets and are growing super fast.
Aryan is a young businessman who wanted a loan to grow his business. He went to different banks and checked their interest rates to find the best one. Some banks had very strict rules. Others took too long to give loans. While searching, he heard that NBFCs also offer loans. This made him confused about the difference between NBFC vs bank. This blog explains in easy words how banks and NBFCs work, what sets them apart, and the rules they follow.
A bank takes money from people as deposits. People can take out their money when they want. Banks also help with daily things like money transfers, salary accounts, and payments.
Banks take deposits from people. They keep some money as a reserve. The rest they give as loans to earn interest. Banks follow very strict rules from the RBI. These include CRR and SLR. This keeps everything safe and stable. This is why NBFC vs bank personal loan becomes an important comparison.
An NBFC in India is a company registered under the Companies Act. RBI regulates it under the RBI Act 1934. It gives loans, helps with asset finance, and does investment work. But it is not a bank.
NBFCs get money from market or their own funds. Then they give loans. They focus mostly on lending. NBFCs cannot take savings or current account deposits. Only some NBFCs (called NBFC-D) can take fixed deposits. That too needs strict RBI permission. They cannot give cheques or join the payment system. Many people turn to NBFC in India when they want quick and easy loans.
This shows the difference between NBFC vs bank in role and services.
Read More - RBI’s Precision Regulation
It is important to check NBFC vs bank interest rate for any type of loan, because it can affect your final decision.
Both banks and NBFCs follow RBI rules. But rules are different. Banks have stricter rules because they take public deposits and handle payments. NBFCs have rules mostly for lending.
Also Read - The RBI Is Quietly Rewriting NBFC rules
*T&C Apply
In simple words, banks have tight rules to protect people who save money. NBFCs have rules that fit their lending work.
Advantages of NBFCs:
Disadvantages of NBFCs:
No one answer fits all. Choose a bank if you want to save money, send payments, or handle daily money needs. Choose NBFC if you want a fast loan or easy approval process. Banks mostly give lower interest rates. NBFCs give faster help and easier access. This becomes important when deciding between an NBFC vs bank for education loan.
Banks and NBFCs both do important work. Banks are best for saving and daily use. NBFCs help a lot with loans and flexible options. Knowing NBFC vs bank interest rate helps you pick what fits your needs best.
Is it good to take a loan from a bank to expand a small business?
Yes, banks give lower interest rates and are safer for small business loans.
Why do people go to NBFCs when the banks are offering home loans?
NBFCs give faster approval, less paperwork, and easier loans even if credit is not perfect.
Dark truth about NBFCs which everyone should know.
NBFC loans have much higher interest rates and your deposits are not insured at all.
What happens to loan when NBFC closes?
Your loan does not disappear. RBI usually transfers it to another NBFC or bank.
Is NBFC safe like a bank in India?
No, NBFCs are less safe. They follow lighter rules and deposits have no insurance protection.
Is NBFC safe like a bank in India?
No, NBFCs are less safe. They follow lighter rules and deposits have no insurance protection.
Does LoansJagat work with banks and NBFCs?
Yes. LoansJagat works with 50+ banks and NBFCs, including Axis Finance, Tata Capital, Yes Bank, Bajaj Finserv, Poonawalla Fincorp, and Aditya Birla Finance.
How long does the LoansJagat debt consolidation journey take?
The eligibility check takes just 2 minutes. After that, the overall process depends on document submission and lender processing time, but it is fully digital with minimal paperwork.
Is my data safe with LoansJagat?
Yes. LoansJagat follows a simple and secure process and uses your data only to match you with the right lenders, in line with its privacy policy.
What happens after I submit documents to LoansJagat?
Your documents are shared with the chosen lender for verification. Once approved, the lender disburses the loan and pays off all your existing loans, leaving you with just one EMI.
