Personal Loans by NBFCs

Tata Capital Personal Loan

Tata Capital offers personal loans of up to Rs.35 lakh without the need for any collateral, making it easy to manage significant expenses such as medical emergencies, home renovations, travel, or weddings. With interest rates starting at 11.50% p.a. and flexible repayment terms of up to 6 years, these loans are designed to provide quick access to funds while ensuring affordability. The application process is straightforward and fully online, with minimal paperwork and simple eligibility requirements, allowing you to apply and receive approval in just a few easy steps. 

Features 

Loan Amount Range: From Rs.40,000 to Rs.35,00,000, giving flexibility to borrow according to your specific financial needs. 

Flexible Loan Tenure: Choose repayment terms of up to 6 years, allowing for manageable monthly instalments. 

Attractive Interest Rates: Starting at just 11.50% p.a., helping keep borrowing costs low. 

Processing Fee: Up to 3.5% of the loan amount plus GST, applicable at the time of loan disbursal. 

Penal Charges: In case of delayed payments, 3% per month is charged on the overdue amount, calculated at an annualised rate of 36%. 

Simple Eligibility for Salaried Applicants: 

1. Age between 21 and 58 years. 

1. Minimum monthly income of Rs.15,000. 

1. At least 1 year of continuous work experience. 

Minimal Documentation Required: 

1. Valid photo ID proof such as Voter ID, Passport, Driving Licence, or Aadhaar Card. 

1. Address proof (same accepted documents as above). 

1. Salary slips for the last 2 months. 

1. Bank statement of your salary account for the last 3 months. 

1. Employment certificate confirming at least 1 year of continuous employment. 

Multiple Application Options: Apply via the Tata Capital website, over the phone at 1860 267 6060, through WhatsApp, or using TIA, the 24x7 virtual assistant. 

Convenient Repayment Methods: Pay your EMI online through the website or mobile app, or deposit a cheque at a nearby branch. 

Mahindra Finance Personal Loan

Mahindra Finance’s personal loans are designed to meet your unique financial needs with a customer-first approach. These loans come with attractive interest rates, flexible repayment options, and minimal documentation, ensuring a smooth and quick borrowing experience. Available exclusively to existing customers with a good repayment history and Mahindra Group employees, our instant personal loans can help fund major life events such as weddings, home renovations, or debt consolidation. With an easy application process and prompt disbursal, you get a loan that fits your life, not the other way around. 

Features 

Loan Amount Range: Borrow from Rs. 50,000 to Rs. 15,00,000 based on your requirement. 

Limited Interest Duration Option: Pay interest only for 12 to 24 months, reducing your overall cost. 

Flexible Tenures: Choose a repayment period from 24 to 60 months, with no pre-payment penalty after six months of disbursal. 

Minimal Documentation: KYC documents (PAN card mandatory, plus Voter ID, Aadhaar Card with masked digits, or Passport), address proof (telephone bill, gas bill, or bank statement), and financial documents such as last three months’ salary slips, last three months’ bank statement in PDF, cancelled cheque, and a passport-size photograph. 

Exclusive Eligibility: 

1. For existing Mahindra Finance customers with a good repayment record. 

1. For Mahindra Group employees aged 21 to 58 with a minimum of two years of service. 

Convenient Application Process: Apply online via a quick 4-step process or visit the nearest branch. 

Fees and Charges: 

1. Processing fee: 2% of the loan amount or Rs. 5,000, whichever is lower. 

1. Pre-closure and part-payment charges: 4% on principal outstanding within the first 6 months; Nil thereafter. 

1. Late payment penalty: 3% per month of unpaid EMI, calculated daily. 

1. Cheque/NACH bounce charges: Rs. 450 per instance. 

1. Other administrative fees such as statement charges, stamping charges, and legal costs may apply. 
   

IIFL Finance Personal Loan

Personal loans from IIFL Finance are tailored to fit diverse financial needs, whether it is for a wedding, vacation, home renovation, medical emergency, or other personal goals. With a digital-first approach, IIFL ensures instant loan approval in just a few minutes (conditions apply) and quick fund disbursal, eliminating long waits and complex paperwork. Borrow amounts from Rs.5,000 to Rs.5,00,000 with flexible tenures of up to 42 months, and choose EMI plans that match your budget. No collateral is required, and the entire application process can be completed online through the IIFL website or app, giving you a seamless and transparent borrowing experience. 

Features 

Loan Amount Range: From Rs. 5,000 to Rs. 5,00,000, suitable for both small and large personal expenses. 

Flexible Loan Tenure: Choose repayment periods between 3 months and 42 months. 

Interest Rates: From 12.75% to 44% p.a., on a reducing balance basis, based on customer profile and loan tenure. 

Processing Fees: Between 2% and 9% of the loan amount + GST, with an additional convenience fee of up to Rs. 500. 

Bounce Charges: Rs. 500 + GST per instance for NACH or E-Mandate returns. 

No Collateral Requirement: Fully unsecured loan with no asset pledge. 

Part-Payment Facility: Option to make part payments when convenient, subject to terms. 

Minimal Documentation: 

1. Identity and address proof (Aadhaar Card, PAN Card, Passport, or Voter ID). 

1. Last 3 months’ salary slips and last 6 months’ bank statements for salaried individuals. 

1. Business registration proof, last 2 years’ ITR, and last 12 months’ bank statements for self-employed individuals. 

Eligibility: 

1. Salaried: Age 23-58 years, minimum monthly income of Rs. 25,000, 2 years total work experience (1 year in current company), CIBIL score of at least 700. 

1. Self-employed: Minimum 3 years in business, annual turnover of at least Rs. 5 lakh, CIBIL score of at least 700. 

Exclusive Pre-approved Loan Offers: For high-credit customers with faster processing, higher loan amounts, and preferential interest rates starting from 10.49% p.a. 

HDB Financial Services Personal Loan

HDB Financial Services offers instant personal loans to help you meet both planned and unexpected financial needs, such as medical expenses, weddings, education, travel, home renovation, or business requirements. With no collateral needed, competitive interest rates, and repayment terms ranging from 12 to 60 months, these loans are designed for convenience and affordability. The process is fully digital, from application to disbursal, ensuring minimal paperwork and quick access to funds. Customers with a good repayment track record may also be eligible for a top-up loan, and a personal loan balance transfer facility is available to help reduce interest costs. 

Features 

Loan Amount: Borrow up to Rs.20 lakh, based on eligibility and profile. 

Interest Rates: Competitive, customised rates determined by loan amount, applicant profile, and repayment capacity. 

Flexible Repayment Tenure: Choose a repayment period between 12 and 60 months. 

Unsecured Loan: No collateral or guarantor required. 

Top-up Loan Facility: Additional funding available for eligible existing customers. 

Balance Transfer Facility: Transfer existing personal loans from other lenders to enjoy competitive rates and reduced EMI burden. 

Quick Processing and Disbursal: Fast approval based on submitted documents and eligibility, with funds credited directly to your bank account. 

Minimal Documentation: 

1. Identity proof (PAN card mandatory, plus Aadhaar Card, Passport, or Voter ID). 

1. Address proof (utility bill or bank statement). 

1. Income proof such as salary slips, bank statements, or business financials. 

Easy EMI Payment: Secure E-NACH facility for automatic EMI deductions. 

Multiple Application Channels: 

1. Apply online via the HDB website. 

1. Use the ‘HDB OnTheGo’ app for a fully digital process. 

1. Visit the nearest HDB branch. 

1. Apply by calling customer support on +91-4442984541. 

Aditya Birla Capital Personal Loan

Aditya Birla Capital offers personal loans with competitive interest rates, flexible repayment options, and quick approvals to help you meet a wide range of financial needs. Whether it is for weddings, travel, home renovation, education, or other expenses, you can enjoy a seamless borrowing experience with easy online applications, transparent charges, and instant EMI calculations. Loan amounts and tenures are tailored to your requirements, and customers can also benefit from balance transfer and top-up loan facilities at attractive rates. 

Features 

Loan Amount and Tenure: Flexible loan amounts with repayment periods that suit your budget and goals. 

Interest Rates: 

1. Loans up to 12 months – interest based on Short Term Reference Rate (STRR), currently 19.45% p.a. (as of 1 March 2024). 

1. Self-employed non-professionals – interest based on Long Term Reference Rate (LTRR), currently 20.45% p.a. (as of 1 March 2024). 

Fees and Charges: 

1. Processing Fee: Up to 4% of sanctioned amount. 

1. Cheque Return Charges: Rs. 1,000 + GST per instance. 

1. Penal Charges for Late Payment: 3% p.m. (36% p.a.) on overdue amount. 

1. Loan Cancellation: 4% of disbursed amount + taxes. 

1. CIBIL Report Retrieval: Rs. 50 per instance for individuals; Rs. 500 for commercial reports. 

Part Pre-payment: 

1. Term Loan: Nil if part pre-payment is ≤ 20% of principal outstanding; up to 4% if above 20%. 

1. Flexi Loan: No charges for payments via mobile app/portal. 

1. Foreclosure: Allowed after 12 months; up to 4% of principal outstanding (term loan) or total withdrawable amount (flexi loan). 

Balance Transfer Facility: Shift your existing loan to Aditya Birla Capital for potentially lower interest rates and reduced EMIs. 

Top-up Loan: Access additional funds at competitive interest rates. 

Digital Tools: Online EMI calculator and eligibility calculator to plan and compare loan options. 

Significance of Personal Loans by NBFCs 

The importance of NBFCs offering personal loans are as follows:  

1. Expands Financial Access: NBFCs extend credit facilities to a wider segment of the population, including individuals with moderate credit scores, irregular income, or unconventional employment profiles who may be declined by traditional banks. 

1. Supports Urgent Financial Needs: With faster loan processing and minimal documentation, NBFC personal loans help borrowers meet urgent expenses such as medical emergencies, weddings, travel, or debt consolidation without lengthy delays. 

1. Promotes Financial Inclusion in Rural and Semi-Urban Areas: Many NBFCs have a strong presence in areas where bank branches are limited. Their outreach enables people in underserved regions to access credit facilities, supporting local business and personal growth. 

1. Offers Flexible Repayment Options: Borrowers can choose customised repayment tenures and EMI schedules based on their income and cash flow, which helps reduce financial stress during the loan term. 

1. Encourages Tailored Lending Solutions  NBFCs often design personal loan products that cater to specific borrower profiles, making the lending process more personalised and borrower-friendly compared to rigid bank loan structures. 

1. Drives Competition in the Lending Market  By offering competitive interest rates and faster services, NBFCs encourage traditional banks to improve their own offerings, benefiting borrowers overall. 

Different Types of NBFCs

The different types of NBFC's are:

• Investment companies
• Loan companies
• Asset Finance companies
• Core Investment companies
• Infrastructure Finance companies
• Micro Finance companies
• Mortgage Guarantee companies
• Housing Finance companies

Personal Loan from NBFCs- Benefits 

The advantages of taking a personal loan from NBFCs are:  

1. Faster processing and disbursal: NBFCs generally have quicker loan approval systems with minimal paperwork. Many use advanced digital verification methods that reduce delays, allowing borrowers to receive funds within a short time. 

1. Flexible eligibility criteria: NBFCs cater to a broader segment of customers, including salaried employees, self-employed professionals, freelancers and individuals with moderate credit scores. This flexibility makes loans more accessible. 

1. Higher loan approval rates: The approval process at NBFCs is often more customer-friendly compared to traditional banks. Even applicants with less-than-perfect credit scores or irregular incomes have a higher chance of approval. 

1. Competitive interest rates: Many NBFCs offer interest rates starting from 10.99% p.a., which can be competitive with bank rates. For creditworthy applicants, rates can be just as low as those offered by leading banks. 

1. Customised loan products: Borrowers can choose repayment tenures, EMI structures and loan amounts that match their income flow and repayment capacity. Some NBFCs offer seasonal or step-up repayment options. 

1. Wider geographical reach: NBFCs operate extensively in rural and semi-urban areas. Their agent networks and online platforms allow customers in remote locations to access credit without visiting a physical branch. 

Disadvantages of NBFC Personal Loans 

The cons of taking a personal loan from NBFC are as follows:  

1. Higher interest rates for low credit scores: Borrowers with poor credit history may be charged higher rates compared to those with good credit. 

1. Possible higher charges: Some NBFCs may apply higher processing fees, prepayment charges or foreclosure penalties than banks. 

1. Variable service quality: Customer service standards can differ significantly between NBFCs. Researching the lender’s reputation is essential before applying. 

1. Lower regulatory oversight in some cases: While many NBFCs are well-regulated, some smaller players operate with less oversight than scheduled commercial banks. 

NBFC Personal Loans vs Bank Personal Loans 

The table below outlines the difference between personal loans from Banks and NBFCs:  

Things to Keep in Mind Before Applying for a Personal Loan from an NBFC 

Check the total cost of the loan -  Review processing fees, prepayment penalties, foreclosure charges and late payment fees before accepting any offer. 

Ensure eligibility before applying - Understand the lender’s criteria to avoid unnecessary rejections that may affect your credit score. 

Evaluate repayment capacity - Make sure the EMIs fit comfortably within your monthly budget to prevent defaults. 

Compare multiple offers - Use online loan marketplaces to check interest rates, processing fees and terms from different NBFCs before deciding. 

Maintain a good credit score - Although NBFCs are more flexible, a higher score can still get you better interest rates and terms. 

A good credit score can help you secure lower interest rates on loans and credit cards.

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