• Personal Loans by NBFCs

    Many Non-Banking Financial Companies (NBFCs) in India offer personal loans to those who need urgent cash to meet their personal expenses. The interest rate charged by NBFCs on personal loans are competitive and range between 10.99% p.a. to 36,00% p.a. You may generally avail a loan amount of up to Rs.25 lakh or even more with processing fee ranging between 2% and 3% of the loan amount. However, you must compare the personal schemes offered by different NBFC’s before applying for the one suitable for you.

    Top NBFCs in India Offering Personal Loans

    NBFC Interest Rate (p.a.) Loan Amount
    Tata Capital 10.99% onwards Up to Rs.25 lakh
    Mahindra Finance As per Lender Up to Rs.3 lakh
    IIFL Finance 24% p.a. onwards Up to Rs.2 lakh
    HDB Financial Services Upto 36% Up to Rs.20 lakh
    Aditya Birla Capital 14.00% p.a. to 26.00% p.a. Up to Rs.15 lakh

    Tata Capital Personal Loan – Features

    • Offers overdraft facility.
    • No penalty charged on part-prepayment.
    • You do not need to provide any collateral to avail the loan.
    • The documentation required is minimal.
    • Loans are instantly approved.
    Processing Fee Part Pre-payment Charges Penal Interest Foreclosure Charges Cancellation Charges
    Up to 2.75% of the loan amount plus GST 2.5% plus applicable GST 3% on overdue amount per month plus GST 4.5% of the principal outstanding at the time of foreclosure plus GST 2% of loan amount or Rs.5,750 plus GST

    Mahindra Finance Personal Loan – Features

    • The personal loan availed from Mahindra Finance can be repaid in a maximum of 3 years.
    • The loan is approved instantly and disbursed within 2 days.
    • You can repay the loan through cheques, mobile transfer, ECS, or depositing cash at the branch.
    • The personal loan is available only to existing customers and employees of Mahindra Finance.
    • Prepayment facility is available.
    • Minimum and maximum age of eligibility are 21 years and 58 years respectively.

    IIFL Finance Personal Loan – Features

    • Loans are quickly processed through Aadhaar-based eKYC and eSign.
    • The loans are disbursed within 8 hours.
    • The entire loan application process can be done online, and the documentation required is minimal.
    • You can avail loans up to Rs.25 lakh as a personal loan from IIFL.
    • The loan application process is transparent and secure.
    Loan Processing Charges Penal Charges Foreclosure Charges Documentation Charges Cheque Bounce Charges
    Up to 2% of the loan amount plus GST 2% compounded monthly Up to 6% Nil Rs.500 per bounce plus GST

    HDB Financial Services Personal Loan – Features

    • Offers doorstep services for the benefit of its customers.
    • You can avail personal loans of up to Rs.20 lakh.
    • You need not provide any security or guarantor to avail the loan.
    • Employees of select companies can enjoy special offers on personal loans.
    • The loans can be repaid in a maximum of 60 months.

    Aditya Birla Capital Personal Loan – Features

    • The interest rate on the loans will remain unchanged throughout the loan tenure.
    • The repayment tenures are flexible and can go up to 36 months.
    • No collateral or security is required to avail the loan.
    • You can add a co-applicant to enhance your eligibility for the loan.
    • Repayment of the loan can be done through ECS or NACH.
    • The application process is hassle-free.

    Different Types of NBFC

    The different types of NBFC’s are:

    1. Investment companies
    2. Loan companies
    3. Asset Finance companies
    4. Core Investment companies
    5. Infrastructure Finance companies
    6. Micro Finance companies
    7. Mortgage Guarantee companies
    8. Housing Finance companies

    FAQs on NBFCs Personal Loans

    1. Is an NBFC allowed to give a loan to an individual?
    2. When it comes to an NBFC, the borrower can be a member of SHG/JLG. The person as a member of a JLG, as a member of a SHG can borrow from the NBFC. Please note that an JLG or individual or SHG cannot borrow from more than 2 NBFC-MFIs at one time. A person can also borrow in individual capacity from the NBFC-MFIs.

    3. What is the processing fee levied by an NBFC?
    4. The processing fee levied by an NBFC-MFI will not be more than 1% of the gross amount of the loan. The fee does not have to be included in the margin cap.

    5. How can I get a loan from an NBFC?
    6. The lending norms from the NBFCs are very relaxed. In a few cases, the MSMEs do not have to actually pledge a collateral for the loan. If you have a good credit score and an application form, the loan process can be initiated.

    7. Can an NBFC give unsecured loans to its customers?
    8. Yes, NBFCs can provide unsecured loans in the form of overdraft, cash credit, and bill discounting. The minimum amount for the loan will be higher than that of nationalized banks.

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