• 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 11.25% to 17.85% p.a.

    Latest Update

    Banks and NBFCs allowed to offer 3-month moratorium on term loans

    The Reserve Bank of India has announced that all banks and Non-Banking Financial Companies (NBFCs) are allowed to offer a 3-month moratorium on all terms loans, including but not limited to personal loans, home loans, and education loans, for the payment of the Equated Monthly Instalments (EMI). This is for the outstanding as of 1 March 2020. This is applicable for all cooperative banks, rural banks, regional banks and NBFCs which include housing finance companies.

    This moratorium will not impact the credit history of the beneficiaries. It will also have no impact on the lender’s asset classification. This is a part of the RBI’s measure to ease the impact of the Covid-19 pandemic which has led to a slow-down in the economy. Individual banks will have to allow EMIs to be suspended. If the bank has not specifically approved this, EMIs will still be automatically deducted from bank accounts.

    Banks will have to discuss this at the board level and then intimate customers of the decision taken. The policy statement from the RBI mentions that personal loans, auto loans, home loans, education loans, and consumer durable loans are included in term loans, I.e., any loan that has a fixed repayment tenure.

    For businesses, a deferment of interest payments for working capital loans has been allowed with outstanding as of 1 March 2020. The accumulated interest has to be paid after the deferment period expires. The moratorium or deferment will not be taken as a change in the terms and conditions of loan agreements.

    Top NBFCs in India Offering Personal Loans

    NBFC Interest Rate (p.a.) Loan Amount
    Bajaj FinServ 12.99% onwards Up to Rs.25 lakh
    Tata Capital 11.25% onwards Up to Rs.25 lakh
    Mahindra Finance As per Lender Up to Rs.3 lakh
    IIFL Finance 13% onwards Up to Rs.25 lakh
    HDB Financial Services Upto 36% Up to Rs.20 lakh
    Shriram City Union Finance Scheme based -
    Aditya Birla Capital 16.85% to 17.85% Up to Rs.50 lakh

    Bajaj FinServ Personal Loan – Features

    • Loans are disbursed within 24 hours of loan approval.
    • You need not provide any collateral to avail the loan.
    • There are no hidden charges associated with the loan.
    • An online loan account helps you manage your EMIs (equated monthly instalments), your repayment schedule, access loan terms and conditions (T&Cs).
    • Offers flexible repayment tenures ranging between 12 months and 60 months.
    Processing Fees Penal Interest Foreclosure Charges Part-prepayment Charges Bounce Charges
    Up to 3.99% of the loan amount 2% of EMI amount per month plus applicable taxes or Rs.200, whichever is higher 4% plus applicable taxes on principal outstanding 2% plus applicable taxes on part-payment amount paid Rs.600 to Rs.1,200 per bounce

    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 2.5% 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.

    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.

    Shriram City Union Finance Personal Loan – Features

    • The loans availed can be repaid in a minimum tenure of 12 months and a maximum tenure of 36 months.
    • To be eligible for the loan, you need to be staying in the same address for at least one year.
    • You should declare all your existing loan commitments to avail this loan.
    • If you are a salaried individual, you should be employed for at least 1 year to be eligible for the loan.
    • Self-employed individuals should be in the same line of business for at least 2 years to be able to avail this loan.

    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 60 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.

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