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What are the Differences Between Banks and NBFCs in Terms of Lending?



Banks and NBFCs

We all, at some point or the other, require additional cash to fund our various wants and requirements. Given this scenario, going in for a loan is said to be the wisest and most secure choice. There are various lending institutions where you can shop for loans. Banks and NBFCs (Non-Banking Financial Companies) are pivotal financial intermediaries that offer Personal Loan Offers and other lending options to customers in need. Although they provide similar kinds of services to customers, they are very different from each other, particularly when it comes to lending.

How are banks different from NFBCs? 

A bank is a government authorised financial institution that offers a wide array of banking facilities to the population. A Non-Banking Financial Company is a financial intermediary that does not possess a banking license but offers specific financial services to the people. Banks, as well as NBFCs, are both regulated by the Central Bank that is the Reserve Bank of India (RBI). Conversely, while NBFCs are registered under the Indian Companies Act, 1956, banks are registered under the Banking Regulation Act, 1949.

Although an NBFC cannot be classified as a bank, it performs a few bank-related lending activities. These include offering credit facility, providing loans and advances, trading in the money market, savings and investment products, transferring money, and handling portfolios of stocks.

The manner in which fixed deposits are accepted 

There is no doubt that banks and NBFCs accept fixed deposits yet there are distinct differences between the two. Rating agencies do not rate the fixed deposits offered by banks. On the other hand, in the case of NBFCs, the fixed deposits are rated by the rating agencies in the country. All in all, an NBFC accepts only term deposits. These entities do not accept deposits that are repayable on demand.

Transaction facilities offered 

Banking institutions are essential components of the payment and settlement cycle. An NBFC is not a part of this system. In addition to this, banks provide a wide array of transaction services to customers. NBFCs do not offer these services. These transaction facilities include the transfer of funds, offering an overdraft facility and the issue of a traveller’s cheque.

Lending and credit 

Banks tend to seamlessly issue various kinds of Credit Cards such as SBI Credit Card or others, on a regular basis, depending on the requirements and needs of its customers. In contrast to this, NBFCs refrain from doing so. This is because banks create credit while NBFCs have got nothing to do with credit creation. In terms of lending, banks usually set their eyes on high network individuals, retailers, and corporates. NBFCs focus solely on the retail sector, so it often deals with consumer loans and vehicle finance. These lending institutions do not lend to big power projects. Banks offer a comparatively lower rate of interest when compared to NBFCs that provide a rate of interest generally higher than what the banks offer. In this case, the interest rate also depends upon each applicant.

Rigorous and precise paperwork 

When it comes to retail loans, NBFCs possess a remarkable market share. These institutions have accomplished this through the process of stress-free processing requirements and relaxed paperwork. Banks, in contrast, are very particular about their paperwork since they require everything to be specific and thorough. Banks shoulder an added responsibility to exercise lending with caution since NPAs (Non-Performing Assets) are on the rise. 

Credit score requirement 

Both NBFCs, as well as banks, offer their best interest rates to customers who possess a high credit score. Banks provide fantastic interest rates to individuals who come with a high credit score that is around the range of 750 or so. Customers, who possess a lower score, say for instance around the range of 500-700, may prefer loans offered by NBFCs. This is because the loans provided by NBFCs are not that strict, particularly when it comes to eligibility requirements.

Additional differences between the two lending institutions: 

  • NBFCs cannot accept demand deposits that are repayable on demand. In contrast, banks can accept demand deposits.
  • NBFCs do not have to preserve reserve ration whereas, in the case of banks, it is compulsory to maintain reserve ratios such as SLR or CRR.
  • In NBFC, foreign investments of up to 100% are permitted by the government whereas in case of banks, only the private sector ones are qualified for foreign investment, and the percentage cannot be more than 74%.

Non-Banking Financial Companies are established with the motive of granting credit to the underprivileged, marginalized, under-served, and deprived sections of the society. On the other hand, banks are chartered by the government to obtain deposits and offer credit to the public. When attempting to secure online Personal Loan offers, it is important to weigh both sides of the spectrum and accordingly decide which financial institution is the right one for when you want a loan.

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.

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Top 3 Finance Certifications to Pursue During COVID-19




Finance Certifications

COVID-19 crisis has made us stay at home for four-five months as companies opt for remote work culture. Many of you might have pushed to furloughing, salary freeze, lessened work hours or, even might have got laid-off. Whatever the situation we are right now, it is bound to change. Take disruption time to your advantage and upskill yourself to get prepared for the new market. Post COIVD-19, the work culture would never be the same. It is high time to get accommodated with the new norm with new skills.

If you are a recently graduated finance graduate or have a career in investment banking or any other financial institute, go for professional finance certification. The industries value the expertise you acquired through a certification program as these involve stringent coursework and exams. Here is a list of top finance certifications you would like to consider.

Each of these certifications carries specific value for job possibilities. Have a look at these financial credentials and choose the one which gives your career the required boost.

Best Finance Certifications to Look for during this COVID-19 crisis

Here are a list and a small brief of most popular finance certifications that you may consider for your career growth.

Financial Risk Manager Certification (FRM):

Given the current economic situation, we can say there is growing insecurity feel among the businesses. This has indirectly put pressure on most of the companies to implement risk management practices to manage stressful circumstances. It is a good option to learn this skill as there is a great demand for this field of risk management.

The most popular certification in this field is FRM certification which enables you to apply knowledge in real-life situations. As an RM accredited professional, you can manage risks related to credit, banking, liquidity, market, and non-market operational risks.

You can pick your career as a credit manager, risk control manager, or advisor for hedge funds, investment banking industry, central banks, asset management companies, financial and non-financial corporations.

Investment Banking Certification:

Investment banking is one of the most sought-after professions in the finance world. Earning an investment banking certification like enables you to work on assignments, design, and execute solutions for fundraising, acquire or merge companies, or develop financing options for your clients.

It expands your knowledge and skills in Analytics and mathematics and helps you stay updated with the trending technologies and happenings in the investment banking industry.

With investment banking certification, you can pick your career in top investment banking firms and launch your career or level up your career to the next level.

For instance: The Chartered Investment Banking Professional (CIBPTM) qualification provided by Investment Banking Council of America, enables finance professionals to upgrade their understanding and competence in the domain. It paves the way for multiple opportunities in investment banking advisory, merger and acquisition, financial analysis, trading, and underwriting.

Financial Modeling Certification (FMC):

If you are a financial professional in an investment bank, real estate, or insurance industry, then this certification is apt for you. It enables you to construct effective models while representing financial accounts or investment analysis. It helps you to evaluate factors and arrive at best business solutions.

Financial modeling, one of the key skills to get into investment banking facilitates you to forecast the health and organization’s viability.

You can pick your career in equity research, investment banking, corporate finance, project finance, and banking.


Earning an additional qualification in a specialized area of finance helps you to level up your career to new heights or jump start your career if you are a recent graduate. Additional knowledge and skills open newer possibilities as it attracts prospective employers to you. You will get a chance to pick the company of your choice to work with rather than getting satisfied with the company you got to work.

The best part of earning a certification is that it proves your dedication and trustworthiness for the work you are looking for and eases your interview process. Use this time to upgrade yourself and level up your career to new heights.

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What does the future hold for blockchain technology?




blockchain technology

Worldwide, the spending on blockchain is expected to increase to $15.9 billion by 2023, according to Statista

In the past few years, blockchain technology has turned out to be a phenomenal technology. The novel attributes of blockchain technology are making business processes more efficient, more secure, and more transparent and are taking the industry toward a new ‘decentralized’ direction. Other blockchain technologies including cryptocurrencies, Dapps, digital wallets, among others are giving rise to new markets.

Applications of blockchain technology in the industry 

Blockchain technology is proving itself helpful across all industries. From finance to supply chain, the technology is giving each industry a facelift and is creating demand for blockchain professionals in this worldwide business overhaul.

 Making cross-border payment faster 

 Cross-border payments are costly due to the involvement of several third parties that make the payment processing slower and heavily taxed. The application of blockchain technology in cross-border payment will eliminate the need for third-parties and bring down the cost of processing payment.

 Minimize ad fraud in digital advertising 

 In 2016, advertisers lost $7.2 billion on digital advertising. What this means is, clicks on ads were not human clicks, instead the clicks were originated by bots. Click fraud is increasing by 50% yearly. In a survey of 135 million ads on Internet Explorer, 50% of ad impressions were found to be non-human. Similarly, 20.5% of ad impressions on Chrome were found non-human. Blockchain can provide greater transparency into metadata of the audience by viewing an advertisement. The use of blockchain can prevent fraudulent clicks by tracing back to the origination and see whether the click was human or bot.

 Blockchain for government agencies 

Rigged EVMs (electronic voting machines) have been reported across various countries during the election season. Security issues have been reported several times, which beat the purpose of elections. India, USA, and other democratic countries around the world have reported several cases of rigged EVMs. The immutability attribute of blockchain can be used to secure votes. In 2018, Sierra Leone conducted the world’s first blockchain-based voting in the world. In the future, we might see increased adoption of blockchain-based ballots for elections.

 Blockchain for cybersecurity 

Data breaches are common and affect the industry worldwide. These breaches expose millions of personal sensitive data that affects lives. This is dangerous especially when it can be done by a simple phishing email. Blockchain inherently by its decentralized architecture and cryptography secures stored data.

Further, cloud storage is susceptible to hacking. Using blockchain this can be reduced to a large extent.

Blockchain for supply chain

The logistics industry involves a large number of vendors, which makes it highly complex. The food supply chain faces contamination issues, theft, and several other issues. Using the blockchain’s decentralized attribute, third-party vendors can be eliminated. Payments are streamlined using smart contracts, which further disintermediate vendors and make the process more seamless. Walmart in collaboration with IBM has created a blockchain-based network that facilitates tracking the origin of food and helps avoid food disasters for companies.

Blockchain for IoT 

The wave of the Internet of things (IoT) is sweeping industries with its ingenious applications. Scaling IoT comes with its challenges. For instance, the storage of data created by devices in one place makes it highly vulnerable to hacking. A decentralized network that connects millions of devices is less prone to hacking and more secure. IBM and Samsung are working on ADEPT (a blockchain-based system) that will allow devices to communicate with each other, update their software, handle errors, and observe energy practice.

All in all, it’s only a matter of time before we see blockchain become a mainstream technology amid a slew of emerging technologies and watch demand for blockchain professionals grow in the process.

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Sukanya Samriddhi yojana calculator – A unique way to save tax




Sukanya Samriddhi yojana

With this development, we believe that people’s mindsets change. Gone are the days when boys are edging more than their counterparts. And in every stage of life today, fit boys limit women to attract the ultimate short straw. Although equality will now increase between the two sexes, investment remains an area where women continue to focus on their parents. One of the main reasons is that a strong part has not been given to the importance of most people he is short of money. The government has taken the right steps in this direction and by launching several schemes, you can financially empower your child to save tax. One of the same scheme is the Sukanya Samriddhi yojana calculator. In this blog, we will discuss in detail plans, provisions and how you can use it to protect.

About the plan Sukanya Samriddhi yojana calculator

An initiative that has been designed for girls has gone to help them complete their education. The program was launched by Prime Minister Narendra Damodardas, 2015. Here you need to know about tax exemption: 80C

  • Beti Bachao Yojana came under the auspices of the Beti Pdao campaign and wanted to build a bright future for girls.
  • Parents are also encouraged to invest in their daughter welfare schemes, which offer incentives to all parties.

Salient features of the scheme

Plan Sukanya Samriddhi Some of the key elements given below –

  1. Flexible Investment

The girl’s parents or guardians can invest the amount that fits their budget. Investment can be between Rs 1,000 and Rs 1.5 lakh per year.

2.Multiple-way to open an account

Offices can be opened for SSY accounts or nationalized banks. It provides the flexibility of alternative plans and easy account opening.

  1. Account

Under the scheme, only one woman for one account.

Besides, the maximum number of accounts allowed in a family of two – one for each child. The maximum limit of the two accounts that twins were born after the first daughter does not apply.

  1. Age front opening

Account open to parent/child Parent, not the child reaches the age of ten years. After children make it through this age, parents are not allowed to open an account.

  1. According to maturity

Children under the age of accounts covered under SSY are 21 years since its foundation. Pass holders have the option to continue the account after maturity.

  1. During operation

Operating accounts are limited to parents and guardians for 10 years. Once the child reaches the age of 10, he can do the explained work independently.

  1. Indian Residents

Sukanya Samriddhi Yojana can be opened only in India for the account.

The documentation for sukanya samriddhi yojana calculator

If you want to open an account for your daughter, the following documents are required.

  1. Birth certificate

A copy of the birth certificate is required to open the account. You must have at least the necessary documents and a ten-year plan to validate his age of opening an account.

  1. Variation Proof

To ask parents for proof of valid identity card of the guardian/guardian who has opened an account on behalf of their daughter.

  1. Hometown

Proof of residence such as a ration card, the voter must submit an identity card, utility bill and so on.

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