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Personal loan from NBFCs

Personal loan from NBFCs

When in need of financing, personal loans can help reel you out of a tough situation. While banks have long been the go-to option, Non-Banking Financial Companies (NBFCs) are redefining the borrowing experience with their simplified processes, faster approvals, and customer-friendly terms.

In this article, we explore the key benefits of taking personal loans from NBFCs and why they are a good alternative for your financing needs.

What are NBFCs?

Non-Banking Financial Companies (NBFCs) are organisations that provide key financial services like loans and investments. NBFCs are registered with the RBI and are regulated and supervised by it.

Most NBFCs offer quicker approvals, customised loan products, and a more borrower-friendly experience, making them a preferred choice for those seeking personal loans without the rigid requirements of traditional lenders.

Also, read – Home Loan from Bank vs NBFC

Why Choose a Personal Loan from an NBFC?

Here are the key benefits of NBFCs that make it worth considering taking a personal loan from NBFC.

1. Faster Loan Approval Process with NBFC Personal Loans

The biggest benefit of a personal loan from an NBFC is how quick and hassle-free the loan approval process is. NBFCs feature streamlined and accelerated loan processing thanks to their minimal eligibility and documentation needs.

NBFCs only ask for a few KYC documents, so the application process is easy.As a result, most NBFCs sanction loans in 24 to 48 hours, while some even provide instant loan sanctioning via their mobile applications or websites.

Such fast processing makes NBFCs a suitable choice for those looking for instant financing, either for emergency needs or for pre-planned expenses.

2. Flexible Eligibility Criteria for NBFC Personal Loans

NBFCs also provide some leeway in their eligibility criteria, opening up personal loans to a greater number of borrowers.

Most NBFCs sanction loans even for those who have moderate credit scores. Even if your credit score is 600-650, you might still be able to get a personal loan from NBFC. Additionally, they consider the comprehensive financial profile of the borrower, such as monthly income, liabilities, and repayment ability, instead of taking only the credit score into consideration.

3. Flexible Loan Amounts and Tenures from NBFCs

NBFCs provide personal loans with high borrowing amounts and flexible repayment tenures, making them appropriate for small as well as big financial requirements.

You can secure a high loan amount depending on your creditworthiness and financial needs and repay it easily over a fixed tenure. NBFC personal loans may have a term between 12 months and 5 years or more. Additionally, the loan term and EMI payment schedule can be adjusted to meet individual requirements.

4. Competitive Interest Rates on NBFC Personal Loans

Many NBFCs offer competitive and customised interest rates for personal loans, making personal loans affordable for a wide range of borrowers.

They can provide tailored interest rates based on various financial parameters. For instance, if you have a good credit record and a stable source of income, you might be able to negotiate the personal loan interest rates with the lender.

What’s more, many NBFCs also offer the facility of choosing between fixed and floating interest rates, where you can choose the repayment mode that suits your financial plans.

5. Wide Accessibility of NBFC Personal Loans Across India

Compared to traditional lenders, NBFCs have a greater reach in areas outside of strictly urban zones. This gives a greater section of individuals access to reliable financing. NBFCs may, therefore, be a more suitable alternative for individuals seeking financing in semi-urban, rural, or remote areas.

6. Tech-Enabled Convenience in NBFC Loan Application

NBFCs use advanced technology to facilitate a smooth and convenient borrowing process. Through simple-to-use apps and online platforms, you can apply for a loan, upload documents, and monitor repayments without stepping out of your house.

Simply visit your lending NBFCs website and log in to your account to monitor your loan status, repayment schedule, and outstanding amount in real time, providing complete transparency and ease.

Plus, you can plan your loan effectively using the personal loan EMI calculators available on your lender’s website. The tools assist you in determining your monthly expenditures, enabling you to budget better.

7. Customized Personal Loan Products by NBFCs

NBFCs also provide tailored personal loan products for various financial requirements. Be it a medical emergency, wedding, or business investment, a personal loan from NBFCs offers you the flexibility of end-use to easily meet these demands.

At the same time, several NBFCs have segment-specific loans for salaried employees, self-employed individuals, or entrepreneurs, with specific terms and advantages based on their financial profiles.

And if that’s not enough, you can also enjoy exclusive offers, discounted processing charges, or lower rates of interest offered by NBFCs during festive seasons to make personal loans more affordable.

The flexibility and range of loan products make NBFCs a convenient option for borrowers with unique financial requirements.

Also, read – Banks vs NBFCs for Education Loan

NBFC Personal Loan Eligibility and Required Documents

Personal loans from NBFC are given based on simple qualification rules, making borrowing more accessible than traditional lenders. The basic NBFC personal loan eligibility criteria include age, stable income, employment type, and repayment capacity. Applicants must also meet the NBFC personal loan requirements specified by the lender.

To apply, keep the following NBFC loan documents ready:

  • Aadhaar / PAN / Passport for KYC
  • Salary slips or income statements
  • Bank statements (last 3–6 months)
  • ITR (for self-employed borrowers)
  • Passport-size photograph

Having the necessary documents for NBFC personal loan ready speeds up approval and ensures a smooth application process.

Also, read – Why NBFCs are the Best Choice for Loan Against Property?

How to Apply for a Personal Loan from an NBFC

You can apply for an NBFC personal loan online in just a few minutes using a website or mobile app. The fully digital NBFC loan application process helps you avoid branch visits and get funds swiftly.

  • Follow these steps:
  • Visit the lender’s website or app
  • Fill in the application form with basic personal and income details
  • Upload KYC and income documents
  • Choose the loan amount and tenure
  • Complete e-KYC and wait for approval and disbursal

Choosing the best NBFC for personal loan can give you fast approval, minimum documentation, and more flexibility in repayment.

Also, read – What Are the RBI Guidelines to Avail Loan Against Securities?

NBFC vs Bank Personal Loans: Key Differences

It becomes easier to choose the right lender when you compare personal loans from NBFCs and banks side-by-side. The benefits of personal loan from NBFC lie in faster approvals, more relaxed eligibility, and digital convenience, while banks focus more on conventional underwriting and strict documentation.

AspectNBFC Personal LoanBank Personal Loan
Processing TimeInstant to 48 hoursSeveral days to weeks
DocumentationMinimal and paperlessExtensive physical paperwork
Credit Score RequirementModerate scores acceptedHigher score preferred
FlexibilityHigh repayment and loan amount flexibilityRelatively rigid terms
AccessibilityStrong presence in semi-urban/rural areasMostly urban-focused

Also, read – What is co-lending

How Credit Score Affects Your NBFC Personal Loan Approval

Your credit score is one of the most important NBFC loan approval factors because it reflects repayment discipline. A high score reduces risk for lenders and increases your chances of receiving an instant personal loan NBFC with a higher loan amount and faster approval. Even applicants with moderate scores can be approved if they have stable income and manageable debt.

While eligibility is broader, a strong score also helps secure better NBFC loan interest rates, leading to more affordable EMIs over the tenure.

In Conclusion

Applying for a personal loan from an NBFC brings you a whole lot of advantages. This comprises quick approval, liberal eligibility, competitive interest rates, wider access, and a hassle-free online experience.

This makes NBFCs a more suitable option than traditional lenders. Are you looking for instant loans at competitive interest rates from the best NBFC for personal loans? Go to the Tata Capital Website or download the app to explore our flexible loan offerings.

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FAQs

What is the interest rate of NBFC personal loan?

Ans. NBFCs provide personal loans at competitive interest rates depending on the borrower’s credit profile and income stability, making them an attractive option.

Can NBFC provide unsecured loan?

Yes, NBFCs offer unsecured loans, which mean a borrower is not required to submit any assets as collateral.

Can we shift personal loan from NBFC to bank?

Yes, a personal loan can be shifted from an NBFC to a bank.

Is it good to avail a personal loan from NBFC?

Ans. Yes, as NBFCs are convenient and flexible when it comes to the process of personal loans. It is particularly ideal for individuals looking for flexible loan terms or with average credit scores.

How does the process of NBFC loan work?

Ans. A personal loan from NBFC can be obtained in five easy steps: a. Go to the website of the desired NBFC lender or download the app. b. Verify your eligibility by filling out some basic details. c. Complete the application form and select the loan amount and repayment tenure. d. Complete the e-KYC process.

What documents are required for an NBFC personal loan?

NBFCs generally ask for basic KYC proof, proof of income, and recent bank statements. You may need to submit your Aadhaar and PAN, salary slips or ITR, and 3-6 months of bank statements to complete the approval process.

Can I get a personal loan instantly from an NBFC?

Yes, many NBFCs offer instant personal loans through fully digital applications. If your KYC and income are verified quickly, the loan can be approved and disbursed within minutes to 24 hours.

How to check personal loan eligibility at an NBFC?

You can check eligibility online by filling in basic details on the lender’s NBFC loan application page or mobile app. The system instantly evaluates factors like age, income, employment type, and credit score to show whether you qualify. 

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