Personal Loans: Top 10 NBFCs Offer Loans at These Interest Rates – See Full List

If you are facing a shortage of funds due to a wedding party you have planned, an unforeseen emergency that has arisen, or a vacation you have been looking forward to, you can arrange money through a Personal loan.

You can get a personal loan from a government bank like State Bank of India (SBI) or Bank of Barodaor from a private bank such as HDFC Bank either ICICI BankBut in case you cannot get it from a commercial bank, you can perfectly knock on the doors of a non-bank financial corporation (NBFC).

Let us first understand what an NBFC is?

What is an NBFC?

It is a company that is not a bank and can participate in any financial business such as loans, leasing, insurance, acceptance of deposits in some cases, among others.

Here we list the top 10 NBFCs in India that offer personal loans to customers across the spectrum. Suppose Raj Mathur, 32, wants to get married and urgently needs ₹10 lakh as loan. He works with a private limited company and gets a salary of ₹1.25 lakh per month. For some reason, the bank rejected his loan application.

In view of the urgency of the loan needs, he kept knocking on more doors to get a loan. He then found that getting a personal loan from an NBFC is relatively much easier. Though it comes with a small additional cost (interest rate), that does not bother him at all.

To apply for a personal loan with an NBFC, the applicant needs the following documents:

A. Pay stubs for the last 3 months

B. KYC Document – ​​PAN Card

C. Proof of address, such as an electric bill or bank statement.

D. Proof of identity such as Voter ID or Aadhaar

Although the personal loan is a unsecured loanThe stakes aren’t high, but you still need to be careful not to pay a higher interest rate, processing fees, or prepayment charges.

Here we outline the details related to different non-banking financial corporations (NBFCs), the documents they require, the maximum loan amount they offer and also the longest loan tenure. It is an exhaustive list.

Top 10 NBFCs offering personal loans:

1. L&T Financial Companies: You can apply for a personal loan with an interest rate starting from 11.50 percent per annum. A personal loan can be applied for for an amount of up to ₹15 lakh without having to submit proof of income. The process is completely digital and ensures faster disbursement without any paperwork, the NBFC portal claims.

The loan can be repaid over a period ranging from 12 to 48 months.

2. Aditya Birla Finance:Aditya Birla Finance offers loans up to ₹50 lakh at lower interest rates to be repaid over a period of up to 7 years. The interest rate varies between 10 to 16 percent. Applicants can pool the income of the co-applicant to enhance eligibility. Let us see this with the help of an example. For instance, if Raj Mathur includes his father (who runs a profitable business) as a co-applicant, then he may be eligible for a higher loan amount.

Calculate your personal loan EMI installment through this EMI calculator

3. Cholamandalam Investment and Finance Company: Cholamandalam offers unsecured personal loans with easy loan repayment options. The NBFC offers instant loan processing and has a presence in over 800 branches across the country. The interest rate varies widely depending on your CIBIL score and overall profile.

4. Mahindra Finance:It offers personal loans for an amount ranging from ₹50,000 to ₹15 lakh. One can choose a tenure of 24 to 60 months with no prepayment penalty. Mahindra Finance personal loans are available for existing customers with a good repayment history.

5. Bajaj Finance:Offers loans with an interest rate of 11 to 32 percent per annum. The processing fee is up to 3.93 percent of the loan amount. Applicants must have a monthly salary of ₹25,000 or more and a CIBIL Score of more than 685.

6. Tata Capital Financial ServicesTata Capital Finance Service: You can apply for a loan between ₹75,000 to ₹35,000,000. The loan term is up to 6 years. The interest rate starts at 10.99 percent per annum.

The NBFC allows partial prepayment of up to 25 percent of the outstanding principal at any time after 12 months of availing a personal loan without penalty or additional charge. And partial prepayment of an amount above 25 percent will attract prepayment charges.

7. Shriram Finance:This NBFC offers loans to anyone in the age group of 21 to 60 years at the time of loan closure. One can get a personal loan without any collateral for an amount up to ₹15 lakh. The interest rate Starts from 12 percent per year on personal loans.

8. Muthoot Fincorp:The personal loan can be availed by anyone in the age group of 21 to 67 years with a credit score of 750. The interest rate is determined based on the applicant’s profile.

Documents required to obtain a personal loan include salary certificate, tax return for the last 3 years, proof of identity and proof of address.

9. HDB Financial Services:One can avail a personal loan up to ₹20 lakh. The minimum annual income should be ₹1 lakh per year for metropolitan cities and ₹75,000 for non-metropolitan localities.

The documents required to apply for a personal loan are proof of identity and address, proof of date of birth, bank statements and a pay stub for the last 3 months.

10. Manappuram Finance:It offers personal loans at an interest rate of 12 percent per year. The term varies between 6 and 24 months. But one can borrow only up to ₹25,000 without guarantee.

As we can deduce from the above information, almost all NBFCs have similar eligibility criteria, required documents and even interest rates.

To get a personal loan from an NBFC, you must be between the age of 21 and 60 years. Documents required to get a personal loan include address proof, identity proof, 3 months salary slips and income tax return (ITR).

Personal loan interest rates start at 10-11 percent per annum and go up to 16-20 percent per annum. Needless to say, interest rates fluctuate based on credit rating, applicant profile, net monthly income, and the loan amount requested.