Sometimes, life throws unexpected expenses your way, and that’s when a personal loan can be a lifesaver. But what if you don’t meet the strict requirements of traditional banks? That’s where non-banking financial companies (NBFCs) step in, offering flexible, fast, and convenient loan options without all the rigid rules.
Whether you need a quick ₹50,000 or a larger sum of up to ₹50 lakh, NBFCs have you covered with minimal paperwork, quick approvals, and a range of interest rates to suit your financial situation.
In this guide, we’ll break down the interest rates, terms, and benefits of non-bank personal loans in India for 2024, so you can make the best choice for your financial needs. Let’s dive in!
What is an NBFC?
You might be wondering, what exactly is an NBFC? An NBFC (Non-Banking Financial Company) is a financial institution that offers many of the same services as a traditional bank, such as personal loans, vehicle loans, and even insurance. However, unlike banks, NBFCs don’t hold banking licenses, so they can’t accept deposits from the public.
The big advantage? NBFCs tend to have more flexible terms, quicker approval processes, and are more open to individuals with lower credit scores or those who might not meet the strict criteria of banks. So if you're looking for a fast, convenient loan without all the red tape, an NBFC might be the way to go!
Here's an overview of what you can expect when applying for a personal loan from an NBFC:
- Interest rates: Range from 9% to 45% per annum, depending on the NBFC and your credit profile.
- Loan amounts: You can borrow up to ₹50 lakh, offering options for both small and large financial needs.
- Loan tenure: The repayment period can be anywhere from 3 to 84 months, allowing you to choose a tenure that best fits your budget.
- Processing fees: Typically around 2% to 3% of the loan amount.
- Instant approval: Minimal documentation is required, and many NBFCs offer fast approval and disbursal, sometimes within hours.
Eligibility Criteria for Personal Loans Offered by NBFCs
To qualify for a personal loan from an NBFC, here are the key eligibility requirements:
- Age: You must be at least 21 years old when applying, and the loan should be fully repaid by the time you turn 70.
- Residency: Only Indian residents are eligible to apply for personal loans from NBFCs.
- Employment: Loans are available to a wide range of professionals, including salaried employees working in both public and private sector companies, employees of State/Central/Local government, and both self-employed professionals and non-professionals.
- Credit Score: A credit score of 750 or higher improves your chances of securing a loan at lower interest rates. However, some NBFCs may still offer loans to applicants with a score below 750, though typically at higher interest rates.
- Monthly Income: The minimum monthly income requirement is usually around ₹15,000, though some lenders may require a higher income based on their criteria.
Meeting these criteria can boost your chances of approval and help you secure a loan with better terms.
Documents Required for NBFC Personal Loans
To apply for a personal loan from an NBFC, you’ll need to submit the following documents:
| Document Type | Accepted Documents |
|---|---|
| Identity Proof | Aadhaar Card, Voter ID, PAN Card, College ID |
| Address Proof | Aadhaar Card, Rent Agreement, Utility Bills |
| Proof of Income (if applicable) | Aadhaar Card, Rent Agreement, Utility Bills |
| Age Proof | Aadhaar Card, Voter ID |
| Proof of Education | College Admission Letter, College ID |
| Photographs | Passport-size photographs for application submission |
How to Apply for a Personal Loan from an NBFC
Applying for a personal loan from an NBFC is incredibly easy and can be done entirely online. Here’s how you can get started:
Visit the Website or Download the App
First things first, head to the official website of the NBFC you want to apply through, or simply download their app. Most lenders have user-friendly apps that make the process quick and convenient.
Check Your Eligibility
Once you're on the platform, you’ll be asked to provide some basic details like your age, income, and credit score. This helps you figure out if you meet their requirements before moving ahead.
Fill Out the Application
Now comes the fun part—applying! Choose the loan amount you need and the repayment term that fits your budget. Fill in all the necessary details like your personal information and bank details. It’s straightforward, and you can usually complete this in just a few minutes.
Complete the e-KYC Process
To keep things simple, most NBFCs offer an e-KYC (Know Your Customer) process, where you can verify your identity online. You’ll need to upload a few documents, like your Aadhaar or PAN card, and you’re good to go.
Set Up Auto-Debit for Repayments
Finally, connect your bank account to set up auto-debit for easy, stress-free repayments. This ensures that your EMIs are deducted automatically, so you never have to worry about missing a payment.
And that’s it! Once approved, the loan amount is credited directly into your bank account. It’s a quick, hassle-free process designed to get you the funds you need without any unnecessary delays.
Want to learn more about how to apply for loans, read our guide on Applying for Instant ₹5000 Personal Loan Online for Urgent Needs
Ready to apply? Just follow these steps, and you’ll be on your way to securing your personal loan in no time!
Top NBFCs Offering Personal Loans and Their Interest Rates
Non-banking financial companies (NBFCs) in India provide a range of personal loan options to meet different financial needs. Whether you're looking for a small loan for immediate expenses or a larger loan for long-term financial planning, NBFCs offer competitive interest rates and flexible repayment terms.
These loans often come with minimal documentation and quick approval, making them an attractive option for both salaried and self-employed individuals.
Below is a breakdown of the top NBFCs offering personal loans and their key details:
| NBFC Name | Interest Rate | Loan Amount | Loan Tenure |
|---|---|---|---|
| Speel Finance Company (Lending Loans Via Pocketly Platform) | Starting from 2% per month | Up to ₹25,000 | 2 - 6 months |
| Fairassets Technologies India | Interest rates as low as 14.1% | Up to ₹7 lakh | 2 - 6 months |
| NDX Financial Services | Starting from 11% | Up to ₹1 lakh | 2 - 6 months |
| L&T Finance Holdings | Starting from 11.50% p.a. | Up to ₹15 lakh | 12 - 48 months |
| Aditya Birla Finance | 12% to 32% p.a. | Up to ₹50 lakh | Up to 7 years |
| Mahindra Finance | As per lender | ₹50,000 to ₹15 lakh | 24 - 60 months |
| Bajaj Finance | 11% to 32% p.a. | Varies | Varies |
| Tata Capital Finance Service | Starting from 10.99% p.a. | ₹75,000 to ₹35 lakh | Up to 6 years |
Fees and Charges Associated with NBFC Personal Loans
Before applying, it's important to be aware of the fees and charges associated with NBFC loans. Here's a breakdown:
| Fees/Charge | Description | Typical rate |
|---|---|---|
| Processing Fees | A fee charged for processing the loan application | Typically, 2% to 3% of the loan amount |
| Part Pre-payment Charges | Fee for partial repayment before the end of the tenure | 2% to 3% on the overdue amount |
| Penal Interest | Interest charged on overdue EMI payments | 2% to 3% on the overdue amount |
| Foreclosure Charges | Fee for fully repaying the loan before the tenure ends | Varies based on lender policies |
| Cancellation Charges | Fee for cancelling the loan after approval | Up to 2% of the loan amount |
You may also check out our detailed guide on Top RBI Approved Personal Loan Apps in India 2024
These fees and charges vary by lender, so it's essential to check with the specific NBFC to understand the exact costs involved.
Features and Benefits of Personal Loans from NBFCs
When considering a personal loan, non-banking financial companies (NBFCs) offer several advantages that make them a popular choice. Here’s a look at the key features and benefits of taking out a personal loan from NBFCs:
Features:
Flexible Loan Amounts:
NBFCs offer personal loans ranging from ₹50,000 to ₹50 lakh, giving you the flexibility to borrow based on your specific financial needs.
Competitive Interest Rates:
Interest rates from NBFCs typically range from 9% to 45% p.a., depending on your credit profile and income level. This allows you to find a loan that matches your financial situation.
Flexible Tenure:
Loan tenures range from 3 to 84 months, giving you the freedom to choose a repayment period that works best for you.
Minimal Documentation:
NBFCs generally require minimal paperwork, making the loan application process fast and easy. Commonly needed documents include Aadhaar, PAN card, and proof of income.
Instant Approval and Disbursal:
Many NBFCs offer instant loan approvals, with funds disbursed within hours or the same day, making them ideal for urgent financial needs.
No Collateral Required:
NBFC personal loans are typically unsecured, meaning you don’t have to pledge any assets as collateral, making it less risky for the borrower.
Benefits:
Quick Access to Funds:
With instant approval and fast disbursal, NBFCs provide quick access to funds, making them ideal for emergencies or urgent needs like medical bills or home repairs.
Flexible Eligibility Criteria:
Unlike traditional banks, NBFCs are more lenient with their eligibility criteria, making loans accessible even to those with lower credit scores or irregular incomes.
Easy Online Application:
Most NBFCs offer fully online loan application processes, allowing you to apply from the comfort of your home without visiting any branch.
Tailored Repayment Options:
NBFCs provide customizable repayment plans, letting you choose a tenure and EMI amount that fits your financial situation, reducing the burden of repayment.
Available for a Wide Range of Borrowers:
NBFCs cater to both salaried and self-employed individuals, giving them a broader customer base and making personal loans available to a larger population.
Improving Credit Score:
Timely repayment of your NBFC personal loan can help improve your credit score, increasing your chances of getting better interest rates in the future.
In short, personal loans from NBFCs offer a flexible, fast, and convenient solution for those in need of quick financing, with minimal hassle and maximum benefits.
Whether you're a student, self-employed, or simply in need of a small loan, finding a trustworthy lender can be challenging. That’s where Pocketly proves invaluable for handling those unexpected financial moments. Let’s find out how.
Why Pocketly is Ideal for Small Loans by NBFCs?
Pocketly is a trusted digital lending platform that partners with leading NBFCs such as Speel Finance Company, Fairassets Technologies India and NDX Financial Services to provide small loans specifically tailored for students. With a focus on security and ease, Pocketly offers a quick loan process that ensures fast access to funds. Here’s why Pocketly stands out:
Perfect for Small Loan Amounts
Whether you need ₹2000 or ₹10,000, Pocketly is designed to cater to small loan requirements. This makes it ideal for students or anyone looking for a quick fix for unexpected expenses like books, travel, or emergencies.
Fast Approval and Instant Disbursal
We know that when you need money, you need it fast. Pocketly offers a quick approval process, and once approved, the money is in your bank account within hours. It’s fast, simple, and designed to handle urgent needs without the wait.
Minimal Documentation
Pocketly keeps things simple. All you need is your Aadhaar card, PAN card, and some basic information to get started. There’s no need for piles of paperwork, making it a stress-free option, especially for students.
Flexible Repayment Options
Pocketly understands that everyone’s financial situation is different. That’s why we offer flexible repayment options, so you can repay your loan at a pace that works for you—without unnecessary pressure.
Student-Friendly Platform
Whether you're managing your college expenses or need a little extra cash for personal needs, Pocketly’s user-friendly app makes applying for a loan super easy. No complicated forms, no intimidating jargon—just a few taps, and you’re set.
So, if you’re a student or someone in need of a small loan, Pocketly is the go-to solution. Quick, reliable, and hassle-free—it’s the perfect way to meet your financial needs without breaking a sweat!
Conclusion
Taking out a personal loan from an NBFC can be a game-changer when you need quick and flexible financing. Whether it's for medical emergencies, home repairs, or even that dream vacation, NBFCs offer hassle-free loans with competitive interest rates and easy approval processes. No mountains of paperwork, no long waits—just fast access to the funds you need.
And if you're looking for a simple, user-friendly way to get started, why not check out Pocketly? With Pocketly, you can apply for a personal loan in just a few taps, enjoy flexible repayment options, and get your loan disbursed within hours. It's that easy!
So, why wait? Download Pocketly today and take control of your financial needs with a loan that's as easy and flexible as you are!
FAQs
What will the interest rates be in India in 2024?
Interest rates in 2024 are expected to fluctuate based on economic conditions and RBI policies. Typically, personal loan rates range from 9% to 45%, depending on the lender, borrower’s credit score, and income.
Which bank has the lowest interest rate on personal loans in 2024?
As of now, leading banks such as SBI, HDFC, and ICICI are known for offering some of the lowest personal loan interest rates, which can start as low as 9% per annum for eligible borrowers. Exact rates will vary based on the borrower's profile.
Will interest rates increase in 2024?
Interest rates might increase or remain stable in 2024, depending on factors like inflation, RBI policies, and global economic trends. It's essential to keep an eye on official updates to stay informed.
What is the interest rate of personal loans in NBFCs?
NBFCs typically offer personal loan interest rates ranging from 9% to 45% per annum, depending on the borrower’s credit profile, income, and loan amount.
Is there a calculator for non-bank personal loan interest rates in India for 2024?
Yes, most NBFCs and financial websites offer online personal loan calculators, allowing you to input your loan amount, tenure, and interest rate to calculate your EMIs and total interest payable for 2024.
Can I apply for a personal loan with Pocketly if I have a low credit score?
Yes, Pocketly understands that not everyone has a perfect credit score. While a higher score can get you better interest rates, Pocketly considers other factors like your income and repayment ability, giving you a chance to access funds even with a lower credit score.
How fast can I get a personal loan with Pocketly?
With Pocketly, the process is quick and efficient. Once your application is approved, the loan is disbursed within hours, ensuring you get the funds you need as fast as possible. Perfect for those urgent financial needs!
What are the interest rates for Pocketly personal loans in 2024?
Pocketly offers competitive interest rates, starting as low as 2% per month. The exact rate you’ll receive depends on factors like your credit score and repayment history, ensuring you get a fair rate tailored to your financial profile.