Top 10 NBFCs for Personal Loans: Rates and Key Info Listed

If you're facing a shortfall of funds for a wedding, an unexpected emergency, or a long-awaited vacation, a personal loan could be a solution. You can obtain a personal loan from various sources, including government banks like State Bank of India (SBI) or Bank of Baroda, private banks such as HDFC Bank or ICICI Bank, and non-banking financial corporations (NBFCs) if banks aren't an option.

What is an NBFC?

A non-banking financial corporation (NBFC) is a financial entity that, unlike banks, isn't licensed to operate as a traditional bank but is involved in various financial activities. These include lending, leasing, and in some cases, accepting deposits and insurance.

Top 10 NBFCs Offering Personal Loans in India

Here's a look at some top NBFCs where you can apply for a personal loan, including the loan amounts they offer, their interest rates, and their application requirements:

L&T Finance Holdings

   - Loan Amount: Up to Rs 15 lakh

   - Interest Rate: Starts from 11.50% per annum

   - Tenure: 12-48 months

   - Features: Digital application process with minimal paperwork.

Aditya Birla Finance

   - Loan Amount: Up to Rs 50 lakh

   - Interest Rate: 10% to 16% per annum

   - Tenure: Up to 7 years

   - Features: Option to include a co-applicant to boost eligibility.

Cholamandalam Investment and Finance Company

   - Loan Amount: Varies based on CIBIL score and profile

   - Interest Rate: Variable

   - Tenure: Flexible repayment options

   - Features: Instant processing with a wide network of branches.

Mahindra Finance

   - Loan Amount: Rs 50,000 to Rs 15 lakh

   - Interest Rate: Competitive rates

   - Tenure: 24-60 months

   - Features: No prepayment penalty; available for existing customers with a good repayment history.

Bajaj Finance

   - Loan Amount: Varies

   - Interest Rate: 11% to 32% per annum

   - Processing Fee: Up to 3.93% of the loan amount

   - Eligibility: Monthly salary of Rs 25,000 or more; CIBIL score over 685.

Tata Capital Finance Services

   - Loan Amount: Rs 75,000 to Rs 35 lakh

   - Interest Rate: Starts at 10.99% per annum

   - Tenure: Up to 6 years

   - Features: Allows part prepayment of up to 25% of the outstanding principal without a penalty after 12 months.

Shriram Finance

   - Loan Amount: Up to Rs 15 lakh

   - Interest Rate: Starting from 12% per annum

   - Eligibility: Age between 21 and 60 years at the time of loan closure.

Muthoot Fincorp

   - Loan Amount: Varies based on profile

   - Interest Rate: Profile-based

   - Eligibility: Age between 21 and 67 years with a credit score of 750

   - Documents Required: Salary certificate, I-T return for the past 3 years, ID proof, and address proof.

HDB Financial Services

   - Loan Amount: Up to Rs 20 lakh

   - Interest Rate: Competitive rates

   - Minimum Annual Income: Rs 1 lakh for metro cities; Rs 75,000 for non-metro cities

   - Documents Required: Identity and address proof, proof of date of birth, bank statements, and last 3 months’ salary slip.

Manappuram Finance

- Loan Amount: Up to Rs 25,000

- Interest Rate: 12% per annum

- Tenure: 6 to 24 months

- Features: Collateral-free loan.

Common Requirements and Considerations

To apply for a personal loan from an NBFC, you'll generally need to be between 21 and 60 years old. Common documents required include address proof, identity proof, recent salary slips, and sometimes income tax returns (ITR).

Interest rates on personal loans from NBFCs typically range from 10% to 20% per annum, depending on factors such as your credit score, income, and loan amount. Keep in mind that while NBFCs might offer easier approval processes, their interest rates and fees might be higher compared to traditional banks.

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