A marketplace usually gets you a better rate than going directly to one NBFC. It checks your profile against many lenders at once. A direct application checks just one. Here’s why that gap matters, and when going direct still makes sense.
What a Loan Marketplace Does
You share your details once. It checks your profile against its network. You see the options you likely qualify for. Often through one soft check that doesn’t touch your credit score.
What a Direct NBFC Application Involves
You apply to one lender only. They assess you against their own criteria. You get one offer, or a rejection. No visibility into what anyone else might have offered.
The Core Trade-off
A marketplace gives you breadth. More options, compared safely. A direct application can be faster if you already know that lender suits you well.
A Quick Comparison Table
FactorLoan MarketplaceDirect NBFCLenders checkedMany at onceJust oneCredit score protectionSoft check firstHard inquiry per applicationRate discoveryCompare real offersSee only one offerSpeedSlightly longerCan be very fastBest forComparing optionsAlready confident in one lender
Why Rate Gaps Are Bigger Than People Expect
The same borrower can see a gap of several percentage points across lenders. Each prices risk with its own model. Go direct to just one, and you never learn if that gap existed for you.
A Worked Example
Apply directly, get offered 16%. Unknown to you, another lender would have offered 12.5% for the same profile. On a ₹5,00,000 loan over 3 years, that gap means tens of thousands in avoidable interest.
When Going Direct Makes Sense
You already have a relationship with one lender. Or a pre-approved offer in hand. Going direct can be faster, without giving up much on rate.
When a Marketplace Is the Better Choice
You’re unsure which lender fits you best. Or the best rate matters more than speed. Checking across a network first protects both your score and your wallet.
Does a Marketplace Cost You Anything Extra?
Generally, no, for the borrower. The lending partner pays most once a loan disburses. Not by charging you. Confirm this directly with any platform you consider.
How to Verify a Marketplace Is Really Comparing
A genuine one checks multiple named lenders. It shows real, comparable offers. Some platforms only push one preferred partner, regardless of fit. Ask how many lenders your profile was checked against. Expect a specific answer.
What Direct Lenders Sometimes Offer That a Marketplace Can’t
Relationship perks. Faster processing for repeat customers. Slightly better terms for those with existing history. A first-time marketplace comparison won’t capture these.
A Practical Way to Decide
Never borrowed before? Not sure which lender fits? Start with a marketplace. Already have a strong relationship with one lender, and speed matters most? Going direct can be the simpler path.
Frequently Asked Questions
Does a marketplace guarantee a better rate than going direct?
Not guaranteed. But it significantly improves your odds, since you’re comparing instead of accepting the first offer.
Is it safe to check my eligibility through a marketplace?
Yes, if it uses a soft check first. A hard inquiry should only happen once you pick a lender.
Do marketplaces charge borrowers a fee?
Usually no. Most are paid by the lending partner, not the borrower. Confirm this with any specific platform.
Should I always use a marketplace over going direct?
Not always. A strong existing relationship with one lender can make going direct just as good, and faster.
Can I compare multiple loan offers without applying to all of them?
Yes. A good marketplace lets you compare eligible offers before choosing a lender, helping you avoid unnecessary hard credit inquiries.
Conclusion
A loan marketplace can make borrowing easier by letting you compare lenders, rates, and terms in one place. However, it doesn’t guarantee the cheapest offer. Compare the total cost, fees, tenure, and repayment terms before choosing the loan that best fits your needs.
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