Non-Banking Financial Companies (NBFCs) have emerged as strong personal loan lenders alongside traditional banks in India. These companies offer flexible terms, quick approvals, and minimal documentation. Whether you are planning a dream vacation, want to cover medical expenses, or consolidate debt, NBFCs provide personalized financial solutions.
With so many options available, we have listed the top 10 NBFCs in India that can provide financial solutions for your unique needs.
List of Top NBFCs for Personal Loans
India is home to several NBFCs that offer financial products, including personal loans, vehicle loans, housing loans, and more. These NBFCs provide credit access to individuals and businesses who find it difficult to secure loans from traditional banks. Below is a list of the top NBFCs in India:
1. LoanTap
LoanTap is a rapidly growing fintech company with its in-house RBI-approved NBFC that offers customized personal loan products, including EMI-free loans, personal loans for salaried individuals, holiday loans, along with business loans, and more. It offers personal loans up to ₹10 lakh and is known for its fast disbursement process and flexible repayment options.
To apply for a personal loan with LoanTap, you need to follow a simple and secured process that requires minimal documentation and can be accessed through their website or loan app. With LoanTap, there are no hidden charges or repayment penalties after 6 months of disbursal.
2. Aditya Birla Finance Limited
A subsidiary of Aditya Birla Capital, Aditya Birla Finance Limited provides several financial services, including personal loans, SME loans, and structured finance. It offers loans up to ₹15 crore for businesses and up to ₹50 lakh for personal loans. Aditya Birla Finance is a top choice for corporate and retail lending, with a strong distribution network and diverse product offerings.
3. Mahindra & Mahindra Financial Services Ltd.
Established to finance Mahindra vehicles, this NBFC has expanded its services to rural and semi-urban areas, offering financial solutions for farmers, small businesses, and rural households. One of the leading rural NBFCs in India, Mahindra & Mahindra Financial Services Ltd., offers loan amounts up to ₹1 crore.
It offers various loan products such as Vehicle loans, personal loans, SME loans, tractor loans, and gold loans.
4. Bajaj Finance Limited
Bajaj Finance Limited is a household name in India that provides personal loans, business loans, home loans, vehicle loans, and consumer durable loans. It provides loan amounts of up to ₹40 lakh for personal loans and up to ₹5 crore for business loans with easy repayment terms and competitive interest rates. The company has a mix of retail, SME, and commercial clients and is known for its fast loan approvals and flexible EMI options.
5. Tata Capital Finance Service Limited
A subsidiary of Tata Capital Limited, Tata Capital Finance is registered with the National Housing Bank as a housing finance company. It offers loan amounts up to ₹25 lakh for personal loans and up to ₹5 crore for business loans. It provides various loan products such as personal, home, business, and car loans. The company is known for its transparency, minimal documentation, and flexible repayment terms.
6. Shriram Finance Limited
Part of the Shriram Group, this NBFC provides various loan products, including small business loans, commercial vehicle financing, and consumer financing of up to ₹10 crore. It offers financial products in the underserved segments, such as commercial vehicle loans, two-wheeler loans, and SME loans. It has an extensive network, particularly in semi-urban and rural areas, making financial services accessible to a broader audience.
7. Muthoot Fincorp
Muthoot Fincorp is well-known for its gold loan services, but it also offers various other financial products such as personal loans, business loans, home loans, vehicle loans, and insurance services. It offers loans up to ₹10 lakh with quick disbursement and minimal paperwork.
8. HDB Financial Services Limited
A subsidiary of HDFC Bank, HDB Financial Services provides a range of financial services, including personal loans, consumer durable loans, and business loans for loan amounts up to ₹50 crore. It has a strong market presence and provides excellent customer service for individual and corporate clients. The company has grown rapidly in recent years with its strong backing and customer-centric approach.
9. IIFL Finance
IIFL Finance offers a comprehensive suite of financial products, including home loans, gold loans, and business loans for loan amounts up to ₹50 crore. It serves retail and business clients and has a significant presence in rural and urban areas. It is known for its quick and easy loan approval process and customer-centric services.
10. Finnable
Finnable is a digital-first NBFC that provides quick and easy personal loans through an entirely online platform for loan amounts up to ₹10 lakh. Specializing in personal loans, Finnable offers fast approval and flexible loan options to salaried professionals, making it an excellent option for young borrowers. Finnable’s fully digital approach and seamless loan experience have made it one of the most popular NBFCs.
Features of NBFC Personal Loans
Below are some of the features of NBFC personal loans:
1. Competitive Interest Rates
NBFCs offer personal loans at competitive interest rates ranging from 9% p.a. to 45% p.a. These rates mostly vary depending on the lender, loan amount, and credit profile.
2. Minimal Documentation
The documentation process for NBFC personal loans is usually simpler and more straightforward.
3. Online Process
Most NBFCs allow you to apply for a personal loan entirely online, from eligibility check to loan disbursement, without visiting a branch.
Eligibility for NBFC Personal Loan
The eligibility criteria for a personal loan from an NBFC may vary depending on the lender. Here are some of the basic requirements:
- You must be at least 20 years of age and a maximum of 60 years.
- Self-employed individuals can also apply for a personal loan, given that they match the income requirements.
- You must have a minimum of 1 year of work experience.
- You must be an Indian citizen.
- You must have a minimum salary of ₹25,000.
Documents Required to Apply for a Loan from an NBFC
The basic documents required to apply for a personal loan are listed below. However, you must check with the specific lender before applying.
- Proof of Identification such as Voter ID and Aadhaar card
- Address proof such as utility bills, rent agreements, electricity bills, etc.
- Proof of income or employment such as PAN card and Bank statements
- Passport-size photographs
How to Apply for Personal Loans from NBFCs?
You can follow the given steps to apply for a personal loan through an NBFC.
- Visit your chosen NBFC’s website or download their loan app.
- Then, you must check your loan eligibility, read the terms and conditions, fill out the application form, complete your KYC, and sign the e-agreement.
- Once your application is verified and approved, the loan is usually disbursed to your account within 24-36 hours.
Benefits of Availing a Personal Loan from NBFCs
Personal loans from NBFCs offer several advantages, making them an attractive choice for many borrowers:
1. Accessibility for Low Credit Scores
While banks might often reject applications from individuals who have low credit scores, some NBFCs offer customized personal loan options for such borrowers.
2. Enhanced Customer Service
NBFCs provide superior customer service throughout the loan approval process and even after the loan is disbursed, ensuring a smooth experience.
3. Minimal Documentation
NBFC personal loans require significantly less paperwork, as the entire process is completed online.
4. Fast Approval and Disbursement
Personal loans from NBFCs are known for their swift approval and quick disbursement, which is ideal in urgent situations.
5. Flexible Eligibility Criteria
NBFCs have more relaxed eligibility requirements and a simpler verification process, making them a go-to option during financial emergencies.
6. Full Loan Amount Sanctioned
NBFCs often approve the full amount without imposing any restrictions.
Conclusion
NBFCs in India are becoming a popular choice for quick, flexible, and accessible loan solutions. Whether you’re looking for a large sum to fund a business venture or seeking a small loan to cover personal expenses, these NBFCs provide a range of options with minimal documentation and fast approvals. Securing a personal loan has never been easier!
Frequently Asked Questions
How is an NBFC different from a bank for personal loans?
NBFCs are financial institutions that provide similar services to banks but do not hold a banking license. While banks follow stricter regulations, NBFCs often have more relaxed eligibility criteria, faster loan approval processes, and a wide range of services.
Are NBFC personal loans safe?
Yes, NBFC personal loans are safe, provided you take the loan from an NBFC registered with the Reserve Bank of India (RBI). Always check the company’s credibility and RBI approval status before applying for a loan.
What are the benefits of taking a personal loan from an NBFC?
NBFCs offer several benefits, including faster loan approval, minimal documentation, relatively lenient eligibility criteria, higher loan amounts, and flexible repayment options.
What is the interest rate on NBFC personal loans?
The interest rates on NBFC personal loans generally range between 9% to 45%, depending on the NBFC, loan amount, loan tenure, and the borrower’s credit profile.
Can I foreclose my NBFC personal loan?
Yes, most NBFCs allow foreclosure or prepayment of personal loans. However, some may charge a foreclosure fee, usually ranging from 1% to 4% of the outstanding amount.
How is the EMI calculated for an NBFC personal loan?
The EMI for an NBFC personal loan is calculated on the basis of the loan amount, interest rate, and tenure. You can use an EMI calculator on most NBFC websites to estimate monthly installments.
