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@article{193327,
        author = {Prof. Saroj Dayashankar Jha and Ghanshyam Ratawa and Ashish Varma and aayush rawal and Faizan Khan and Sumit gupta and Gaurav debnath},
        title = {COMPARATIVE ANALYSIS OF BANK VS NBFC LENDING PRACTICES IN INDIA},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {10},
        pages = {41-51},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=193327},
        abstract = {Purpose: Banks and Non-Banking Financial Companies (NBFCs) are the principal institutional sources of credit in India, playing a vital role in economic development and financial inclusion. Despite operating within the same financial ecosystem, their lending practices differ significantly in terms of regulation, procedures, cost of credit, and customer outreach. This study aims to comparatively examine the lending practices of banks and NBFCs in India with reference to regulatory frameworks, interest rate structures, loan processing procedures, risk management approaches, digital lending adoption, and financial inclusion efforts.
The study adopts a descriptive and comparative research design based primarily on secondary data collected from Reserve Bank of India reports, academic literature, industry publications, and annual reports of selected banks and NBFCs. Survey-based observations are also used to understand borrower perceptions regarding flexibility, transparency, and repayment structures. The findings reveal that banks benefit from strong regulatory oversight and low-cost deposit-based funding, enabling them to offer lower interest rates and long-term financing. In contrast, NBFCs exhibit greater operational flexibility, faster loan disbursement, simplified documentation, and innovative credit appraisal methods, allowing them to effectively serve MSMEs, self-employed individuals, and underserved borrowers. The study concludes that banks and NBFCs perform complementary roles, and increased collaboration can enhance credit accessibility and strengthen India's financial system.},
        keywords = {Banks. Lending Practices, Financial Inclusion, Digital Lending, India},
        month = {March},
        }