Personal Loans by NBFCs 2026

NBFC's (non-banking financial companies) are organisations that offer financial services such as loaning money, financing assets, and investing but do not possess a banking licence. They cannot accept demand deposits, such as savings accounts or current accounts, and instead operate under the supervision of the Reserve Bank of India. 

Why are NBFCs important for personal loans? 

Most people who take out unsecured personal loans from NBFCs do not have sufficient security to qualify for a personal loan from a bank, so they turn to NBFC's for assistance.  

NBFC's play a very important role in improving access to credit for borrowers with little or no credit history. NBFC's are also beneficial for applicants with urgent financial needs, making them an ideal alternative to banks for financial inclusion and promoting competition among lenders. 

Types of NBFCs offer personal loans 

Common NBFC types relevant to personal loans include 

• loan companies 

• investment and credit companies 

• microfinance institutions 

• asset finance companies. 

NBFCs in India offering Personal Loans 

The following are some of the popular NBFCs offering personal loans in India:

Tata Capital Personal Loan

Tata Capital offers an unsecured personal loan, meaning you do not need to provide any collateral such as property or fixed deposits. This makes it easier for individuals to access funds for personal financial requirements without pledging any assets. 

• Type of Loan: Unsecured personal loan with no collateral required. 

• Loan Amount: Rs.40,000 to Rs.35 lakhs based on eligibility. 

• Usage: Flexible. Can be used for medical needs, travel, weddings, home renovation, or other personal expenses. 

• Interest Rate: Starts from around 10.99% per annum and may go higher depending on the credit profile. 

• Tenure: Up to 6 years or 72 months. 

• Processing Fee: Up to 3.5% of the loan amount plus GST. 

Eligibility (Indicative for Salaried Applicants) 

• Age: 21 to 58 years  

• Minimum income: Rs.15,000 per month  

• Work experience: Minimum 1 year with stable employment  

Documents Required 

• ID proof such as Aadhaar, PAN, Passport, or Driving Licence  

• Address proof  

• Last 2 months’ salary slips  

• Last 3 months’ bank statements  

Application and Repayment 

• Fully online application via website, phone, WhatsApp, or virtual assistant  

• Quick approval with minimal paperwork  

• EMI repayment through online modes or cheque  

Key Benefits 

• No collateral required  

• Quick disbursal  

• Flexible tenure  

• Minimal documentation 

Mahindra Finance Personal Loan

Mahindra Finance offers personal loans designed to meet a variety of individual financial needs. These are unsecured loans, so you do not need to provide collateral, making the borrowing process simpler and more accessible. 

• Type of Loan: Unsecured personal loan with no collateral required. 

• Loan Amount: Rs.50,000 to Rs.15 lakhs based on eligibility and financial profile. 

• Usage: Flexible. Can be used for weddings, home renovation, debt consolidation, or other personal expenses. 

• Interest Rate: Starts from 10.49%.  

• Limited Interest Duration Option: Option to pay only interest for 12 to 24 months, helping reduce the initial repayment burden. 

• Tenure: 24 to 60 months with flexible EMI options. 

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

• Prepayment Charges: 4% of principal outstanding if prepaid within the first 6 months. No charges after 6 months. 

• Late Payment Charges: 3% per month on overdue amount, calculated daily. 

• Bounce Charges: Rs.450 per instance of cheque or NACH bounce. 

• Other Charges: Additional administrative fees such as statement requests, stamping, or legal charges may apply. 

Eligibility 

Existing Customers: Available to customers with a good repayment history. 

Mahindra Group Employees 

• Age: 21 to 58 years  

• Minimum 2 years of continuous service  

Documents Required 

• PAN card  

• Photo ID such as Aadhaar, Voter ID, or Passport  

• Address proof such as utility bill or bank statement  

• Last 3 months’ salary slips  

• Last 3 months’ bank statements  

• Cancelled cheque  

• Passport-size photograph  

Application and Repayment 

• Apply online through a simple 4-step process or visit a branch  

• Quick processing with minimal documentation  

• EMI repayment through standard banking modes  

Key Benefits 

• No collateral required  

• Flexible repayment structure  

• Quick access to funds  

• Suitable for existing customers and Mahindra Group employees 

IIFL Finance Personal Loan

IIFL Finance provides unsecured personal loans, meaning no collateral is required. The loans are designed to meet diverse personal financial needs, making it easier to access funds without pledging assets. 

• Type of Loan: Unsecured personal loan with no collateral required. 

• Loan Amount: Rs.5,000 to Rs.5 lakhs. 

• Loan Tenure: The loan tenure can be between 3 to 42 months.  

• Usage: Flexible. Can be used for weddings, travel, home repairs, medical emergencies, or other personal expenses. 

• Interest Rate: 12.75% to 44% per annum on a reducing balance basis.  

• Processing Fee: 2% to 9% of the loan amount plus GST, along with a convenience fee of up to Rs.500. 

• Collateral Requirement: No collateral required. 

• Part-Payment Facility: Part-payment allowed as per lender’s terms and conditions. 

Eligibility 

Salaried Applicants 

• Age: 23 to 60 years  

Self-Employed Applicants 

• Age: 25 to 65 years 

• Minimum 3 years in business  

Documents Required 

Salaried Individuals 

• ID and address proof such as Aadhaar, PAN, Passport, or Voter ID  

• Last 3 months’ salary slips  

• Last 6 months’ bank statements  

Self-Employed Individuals 

• ID and address proof  

• Business registration proof  

• Last 2 years’ ITR  

• Last 12 months’ bank statements  

Application and Repayment 

• Fully digital application via website or mobile app  

• Quick processing with minimal documentation  

• EMI repayment through standard banking modes  

Key Benefits 

• No collateral required  

• Fast digital processing  

• Flexible repayment options  

• Pre-approved offers for eligible customers 

• No Hidden charges 

• Minimal Documentation 

HDB Financial Services Personal Loan

HDB Financial Services offers unsecured personal loans, meaning borrowers do not need to pledge collateral or provide a guarantor. These loans are designed to meet both planned and unexpected financial needs, offering convenience and quick access to funds. 

• Type of Loan: Unsecured loan with no collateral or guarantor required. 

• Loan Amount: Up to Rs.20 lakh based on eligibility and applicant profile. 

• Usage: Flexible. Can be used for medical expenses, weddings, education, travel, home renovation, or business needs. 

• Interest Rate: Competitive and customised based on loan amount, applicant profile, and repayment capacity. 

• Tenure: 12 to 60 months. 

• Quick Disbursal: The loan will be sanctioned quickly and with minimal documentation.  

• No Collateral: There is no need for a collateral or a guarantor.  

Eligibility Criteria for Self-Employed Professionals: Includes Doctors, Chartered Accountants, Architects, and Company Secretaries 

• Age: 22 to 65 years  

• Business vintage: Minimum 3 years  

• Minimum annual income: Rs.1,00,000 (metro), Rs.75,000 (non-metro)  

• Profitability: Business must be profitable for the last 2 financial years  

Eligibility Criteria for Self-Employed Individuals: Includes sole proprietors, partners, and directors in manufacturing, trading, or services 

• Age: 22 to 65 years  

• Business stability: Minimum 3 years  

• Business vintage: Minimum 4 years with at least 2 years in current business  

• Minimum annual income: Rs.1,00,000 (metro), Rs.75,000 (non-metro)  

Documents Required for Self-Employed Professionals 

• Identity and address proof: Passport, Voter ID, Driving Licence, PAN Card, Aadhaar, utility bills (not older than 2 months), rental agreement, or employer allotment letter  

• Date of birth proof: Driving Licence, PAN Card, Passport, birth certificate, or 10th/12th mark sheet  

• Bank statements: Latest statements or passbook updated within 90 days  

• Income proof: Latest ITR with computation, balance sheet, and profit and loss account for last 2 years certified by a CA  

Documents Required for Self-Employed Individuals 

• Identity and address proof: Passport, Voter ID, Driving Licence, PAN Card, Aadhaar, utility bills (not older than 2 months), rental agreement, employer allotment letter, or registration certificate  

• Date of birth proof: Driving Licence, PAN Card, Passport, birth certificate, or 10th/12th mark sheet  

• Bank statements: Latest statements or passbook updated within 90 days  

• Income proof: Latest ITR with computation, balance sheet, and profit and loss account for last 2 years certified by a CA  

• Proof of continuation: Trade licence, establishment certificate, or sales tax certificate  

• Other mandatory documents: Any two such as registration certificate, Shop and Establishment licence, GST/VAT/CST certificate, professional tax registration, IEC code, professional licence, complete ITR, or utility bills 

Application and Repayment 

• Fully digital application process  

• Apply via website, mobile app, branch, or customer support  

• Quick approval and disbursal  

• EMI payment through E-NACH auto-debit  

Key Benefits 

• No collateral or guarantor required  

• Quick processing and disbursal  

• Flexible repayment options  

• Top-up and balance transfer facilities  

• Minimal documentation 

Aditya Birla Capital Personal Loan

Aditya Birla Capital offers unsecured personal loans, meaning no collateral or guarantor is required. These loans are designed to provide quick access to funds for a wide variety of personal financial needs. 

• Loan Amount and Tenure: Flexible loan amounts and repayment periods based on individual eligibility and requirements. 

• Usage: Flexible. Can be used for travel, weddings, education, home renovation, or other personal expenses. 

• Collateral: There is no need for any collateral.  

• Digital Tools:Online EMI calculators for planning and comparison 

Interest Rate: Varies based on borrower profile and product type: 

• Up to 12 months linked to STRR at 19.45% per annum (as of 1 March 2024)  

• Self-employed non-professionals linked to LTRR at 20.45% per annum (as of 1 March 2024) Rates may vary and can be lower for pre-approved or high-credit customers. 

Eligibility Criteria 

• Nationality: Indian citizen  

• Minimum age: 21 years  

• Maximum age: 60 years 

• Credit score: 750+  

• Employment: Salaried  

Documents Required 

• Identity proof: Passport, Aadhaar Card, Voter ID, Driving Licence, Job Card (NREGA), Registration Certificate, PAN Card  

• Address proof: Aadhaar Card, Passport, Voter ID, utility bills, or bank statements  

• Income proof: Last 3 months’ salary slips, latest Form 16, last 6 months’ bank statements (salary account)  

• Other income proof: Salary certificate, last 6 months’ bank statements, latest Form 16 

Repayment Features 

Part Pre-payment 

• No charges if pre-payment is up to 20% of principal outstanding  

• Up to 4% charge if pre-payment exceeds 20%  

• No charges for pre-payment via app or web for flexi loans  

Foreclosure 

• Allowed after 12 months  

• 4% charge on principal outstanding for term loans  

• 4% charge on total withdrawable amount for flexi loans  

Key Benefits 

• Flexible loan structure  

• No collateral  

• Facility to add co-applicant 

• Transparent fee structure  

• Predictable EMIs 

• Quick Sanctions 

Significance of Personal Loans by NBFCs 

The importance of NBFCs offering personal loans 

• Enhances access to financing: NBFCs provide loans to a wider group of borrowers than banks do, including people with average credit scores. Uncommon types of income and job types that are not used as collateral by banks. 

• Addresses urgent financial needs: Expedited loan approval and fewer documents allow borrowers to use their loan to pay for their immediate financial needs, such as medical emergencies, weddings, travel, and debt consolidation. 

• Supports financial inclusion: NBFCs have a large number of branches in rural and semi-urban communities, enabling access to credit in areas where traditional bank branches do not exist, and helping to strengthen local economies. 

• Provides flexible repayment terms: Borrowers can customise their loan term and amount of monthly payment to create a payment plan that meets their income and cash flow needs. 

• Fosters market competition: Competitive loan pricing and fast service from NBFCs create a competitive environment, leading banks to improve lending services to remain competitive, providing a positive effect on all borrowers. 

Advantages and Disadvantages of Personal Loans from NBFCs

The pros and cons of securing personal loand from NBFCs is outlined below:

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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