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.
|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|
|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|
|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|
The different types of NBFC’s are:
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.
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.
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.
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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