NBFC loans usually have higher interest rates but more flexible rules, leading to faster approvals. Bank loans offer lower interest rates but come with stricter eligibility and documentation. NBFCs take higher risks, while banks follow more conservative lending practices.
After a loan default, banks first send reminders and notices. If unpaid, the account becomes NPA and recovery begins. In secured loans, banks can seize collateral, while unsecured loans may involve legal notices and court action. Continuous default also impacts the CIBIL score.
A home loan sanction letter is an approval document issued by a bank stating the loan amount, interest rate, and terms. It is not final disbursement. The validity is usually 3 to 6 months, within which property verification must be completed.