How to Choose Between a Bank and an NBFC for Funding

Industry Perspectives

By CreditLink Advisors · 02 Mar 2026 · 6 min read

Banks are typically able to offer lower interest rates on secured products and have broad product suites, but may apply more conservative underwriting norms and can take longer for complex or newer businesses.

NBFCs (Non-Banking Financial Companies) often have more flexible eligibility criteria, faster turnaround, and specialised products for specific sectors or borrower profiles, though this can come at a relatively higher cost of funds.

The right choice depends on your urgency, the complexity of your case, your existing banking relationship, and how comfortable you are trading off cost against speed and flexibility.

An advisor who works across both banks and NBFCs can help match your specific requirement to the lenders most likely to approve it on reasonable terms, rather than approaching lenders one at a time. {{VERIFY}} Product terms differ across institutions and change periodically.

Disclaimer: This article is for general information only and does not constitute financial, investment or legal advice. Loan terms, eligibility and processes vary by lender and change over time — please verify current details with the relevant bank/NBFC or a CreditLink Advisors representative before acting.

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