Interest Rate on NBFC Personal Loan
NBFC Personal Loan
Non-Banking Financial Companies (NBFCs) are becoming increasingly popular as alternative sources to traditional banks for borrowing money. While the interest rate charged on an NBFC personal loan could be the same or even slightly higher than that charged by a bank, the convenience, ease of application, and the speed of loan disbursal make up for the cost of borrowing, even if slightly higher.
Whether you need money for a medical emergency, home renovation, wedding, or any other personal expense, a personal loan from a non-banking finance company can be a great option. Here are some important details that you need to be aware of before applying for an NBFC loan.
NBFC Loan Details
| Particulars | Loan Details |
| Loan amount | ₹10,000 – ₹50 Lakh |
| Loan tenure | 3 – 84 months |
| Interest rates | 9% p.a. – 45% p.a. |
| Foreclosure fees | 2%-5% of the outstanding amount |
| Processing fees | 0.5% – 4% of the loan amount |
| Late payment fees | 1% – 3% of the EMI |
Features of NBFC Personal Loans
1. Interest Rates
Interest rates for NBFC personal loans could typically range from 9% p.a. to 45% p.a., depending on the lender, loan amount, tenure, and of course your credit profile.
2. Loan Tenure
NBFC personal loans have flexible tenure options ranging from 3 months to 84 months. Before applying, check with your lender to know the exact details. Since NBFCs, in general, are more lenient and pliant than traditional lenders, you may be able to negotiate for a tenure that meets your expectations better.
3. Prepayment Charges
If you want, you can prepay a personal loan, based on your convenience. However, some NBFCs may impose a small fee on that. While the fee could vary from lender to lender, it is usually a fixed percentage of the outstanding loan amount. However, please note that Navi does not charge a fee on prepayment or foreclosure.
Benefits of NBFC Personal Loan
1. Easy Application Process
The personal loan application process for most NBFCs is generally fast and easy. All you need to do is visit the website or download the phone app of your preferred lender. Enter a few basic details to check your eligibility, choose the loan amount and tenure, and complete your e-KYC from the comfort of your home. Once your application is approved, the disbursal could happen in a matter of minutes.
2. Minimum Documents Required
Compared to banks, NBFCs generally ask for less documents. In fact, with some lenders like Navi, you just need to provide your PAN and Aadhaar details during the KYC process and no other document is required. Some basic documents, such as identity proof, address proof, income proof, and bank statements may be required.
3. Quick Disbursal
This is one of the main advantages of availing personal loans from non-banking finance companies. Once the loan is approved, the loan amount is disbursed into the borrower’s bank account within a few hours. In case of Navi Instant Cash Loans, you can get the amount within a few minutes after approval, provided you have linked your bank account and set up auto-debit.
4. No Hidden Charges
NBFCs are generally quite transparent about the terms and conditions of their loans. They generally do not have hidden costs, and all the fees and charges are mentioned in the loan agreement.
5. No Collateral Required
NBFC personal loans are unsecured loans. It means borrowers do not need to provide any collateral, such as a home, a car, or an expensive asset to get the loan. So, even those without significant assets, can apply for and get personal loans from NBFCs to meet their financial needs.
Also Read
How to Apply for a Personal Loan from NBFC?
- Visit the official website or download the phone app of your preferred NBFC lender
- Check your eligibility by adding a few basic details
- Fill in the application form and select the loan amount and tenure
- Complete the e-KYC process
- Link your bank account and set up auto-debit
Documents Required for Personal Loan from Non-Banking Finances
While lenders, such as Navi, require your PAN and Aadhaar details and nothing else, some NBFCs could ask for documents such as:
- Identity proof: Voter ID card, Aadhar card, PAN card, driving license, etc.
- Age proof: Voter ID card, Aadhar card
- Address proof: Utility bills, rent agreement, etc.
- Income or employment proof: Salary slips or bank statements
- Passport-size photographs
Eligibility Criteria for NBFC Loan
| Particulars | For Salaried | For Self-employed |
| Age limit | 18 to 60 years | 21 to 65 years |
| Minimum income requirements | Rs. 15,000 per month (can vary across lenders) | Rs. 15 lakh per annum (can vary across lenders) |
| Minimum work experience | 1 year (6 months with current employer) | 2 years of business continuity |
| Credit score | 650 and above | 650 and above |
Interest Rate on NBFC Personal Loan
| NBFCs | Interest rate |
| Navi | 9.9% p.a. onwards |
| Bajaj Finserv | 11% p.a. onwards |
| Tata Capital | 10.99% p.a. onwards |
| Muthoot Finance | 16.37% p.a. onwards |
| HDB Financial Services | 13.99% p.a. onwards |
| Mahindra Finance | 9.14% onwards |
| Fullerton India | 11.99% pa onwards |
Best NBFCs for Personal Loan
| NBFC | Loan amount | Tenure |
| Navi | Up to ₹20 lakh | Up to 72 months |
| Bajaj Finserv | Up to ₹35 lakh | Up to 84 months |
| Tata Capital | ₹40000 to ₹35 lakh | Up to 84 months |
| Muthoot Finance | Starts at ₹50,000 | Up to 60 months |
| HDB Financial Services | Up to ₹20 lakh | 12 to 60 months |
| Mahindra Finance | Up to ₹3 lakh | Up to 36 months |
| Fullerton India | Up to ₹25 lakh | 12 to 60 months |
Final Word
Personal loans provided by Non-Banking Financial Companies (NBFCs) could be more flexible and easier to access. Moreover, minimal documentation, video KYC, and instant disbursal make these loans extremely attractive. However, you should consider the terms and conditions of a NBFC personal loan, before you apply.
If you want instant cash up to ₹20 Lakh, at low interest rates, starting at just 9.9% p.a, you could consider Instant Personal Loan from Navi. Download the Navi App today and get started.
FAQs
An NBFC personal loan is a loan that is provided by a non-banking finance company (NBFC). These loans are generally unsecured and can be used for various purposes, such as wedding expenses, medical bills, or even debt consolidation.
The amount of personal loan you can get from an NBFC depends on several factors, such as your credit history, income, employment status, and other financial obligations. However, the actual loan amount approved will depend on the lender’s assessment of your profile and their policies.
The processing fee charged on personal loans varies from one NBFC to another. The range could generally be 0.5% and 4% of the loan amount. However, you have to pay no processing fee on Navi Instant Cash Loan.
NBFC loans are often easier to access due to their less stringent rules. Moreover, the processing times are generally much less compared to traditional loans since they require minimum documentation. These lenders also use modern digital technologies to enhance customer experience.
There are quite a few top NBFCs that issue personal loans in India. However, zeroing in on the best NBFC for a personal loan may not be possible. Because the suitability of a lender and their loan would depend on your specific needs and profile. Some popular NBFCs for personal loans in India are Navi, Bajaj Finserv, Tata Capital, and Fullerton India.
Some benefits of getting an NBFC personal loan are flexible repayment options, quick processing and disbursal, end-to-end digital journey, and transparent policies.
Generally, interest rates for NBFC personal loans start from 9% p.a. and could go up to 45% p.a. Interest rates for NBFC personal loans can vary widely depending on the NBFC and the borrower’s creditworthiness.
Getting an NBFC personal loan with a low credit score may be more difficult since these are unsecured loans and your creditworthiness is what the lender bases his assessment on. However, some NBFCs may be willing to provide personal loans to borrowers with low credit scores. However, in such cases, the interest rate may be higher, the approved amount may be less than what was applied for, and there may be additional charges.
The processing time for an NBFC personal loan can vary depending on the lender and the borrower’s eligibility. Some NBFCs may offer same-day approvals and disbursals, while others may take several days.
Personal Loan in Your City
