To own your home is a pivotal milestone in an individual’s life and one that everyone is striving to achieve. Real estate provides a sense of stability and security unlike any other and is an extremely stable investment to make. Most people buy their homes by applying for and securing home loans from both banks and nonbank financial companies (NBFCs).
Nonbank financial companies are financial institutions that do not classify as banks but provide various financial services and banking facilities. These institutions cater to those clients who are excluded by banks and provide financial services to help grow new ventures. These financial services include acquiring shares, securities, and stocks, advancing loans, and providing credit facilities and retirement plans, among others.
With an ever-increasing population, banks are today hard-pressed to serve every need, and NBFCs step in and fulfill that role. These financial institutions, though not banks, are bound by the same rules and regulations that are applicable to banking services. Nonbanking financial companies also act as the primary source of credit for small businesses, especially those within the unorganized sector.
The primary role of NBFCs is to provide assistance to infrastructure, and they contribute significantly to the real estate industry. With a large number of home investors belonging to the middle class, NBFCs are now important sources of home loans. These institutions grant loans to applicants looking to invest in residential real estate and provide simpler alternative services to banks.
Funding from banks has significantly reduced recently, and today, NBFCs are accounting for a large share of the loans disbursed. These institutions, through their various services, attract foreign investment to India, improve resource mobilization, and increase the formation of capital. It is easier to apply for a loan through an NBFC, with these institutions being just as reliable as banks.
The Prestige City new launch township at Sarjapur Road, East Bangalore.
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