New Delhi, April 9 -- Borrowers typically have to make a choice between traditional banks and NBFCs when considering a personal loan. Each is different in the advantages and disadvantages, and this article discusses the pros and cons of availing a personal loan from NBFCs compared to banks.

Banks are regulated financial institutions which are allowed to take deposits, give personal loans, and provide an extensive variety of other financial services and products. They are under the tightest of regulations governed by the RBI, which ensures a high degree of dependability and stability.

NBFCs, render financial services such as loans and credit facilities that are similar to those rendered by banks. Despite all these prohibitions, NBFCs are...