If i am getting a slightly lower interest rate for loan from a p2p lender over a NBFC. Which one is better P2P or NBFC?
Borrowing from banks or NBFC is a more safe way of borrowing compared to P2P portals. If you are still looking at P2P loans make sure to read the terms and conditions of the portal in detail since each P2P lender will have different terms and conditions. Prefer a NBFC over P2P unless RBI regulations are implemented for P2P lending.
It all depends on your requirements. As is the case with just about everything, there are pros and cons as well. You need to be clear about the fees and charges involved before option for a P2P loan. Keep in mind that the RBI has put a cap on the amount that can be borrowed through this facility. The maximum amount one may borrow at any time is capped at Rs. 10 lakhs, so if your loan requirement is higher, then you will have to look elsewhere.
However, P2P loans offer borrowers with good Credit Scores to borrow amounts as low as Rs. 25,000 even for a 6 month period, which they can prepay without any penalty. Banks don’t offer such flexibility.
So, it really all depends on the amount you’re looking to borrow and how your financial situation is. Before deciding, do a thorough comparison before opting for one or the other.
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