NBFCs for a Personal Loan

Last Updated : June 25, 2025, 4:31 p.m.

Nowadays, whenever an individual needs an external financial boost, they apply for a personal loan, whether it is for marriage or home renovation. However, it is quite difficult for an individual to obtain quick approval from nationalised banks because they require a substantial amount of documentation and verification. In such a situation, the only option left is to take a personal loan from NBFCs. Therefore, you can see various NBFCs for a personal loan that offer loans at an attractive rate of interest. On the other hand, you can explore the various details of these loans, such as the tenure and range of principal amount.

NBFCs Personal Loan Interest Rate and Other Details

Find the personal loan interest rates and other important details offered by various NBFCs of India -

Advantage of Applying for a Personal Loan from NBFCs

There are certain advantages of taking a personal loan from an NBFC, and you must explore all the benefits because personal loans are helpful during a financial emergency. Read the content below to know more about the benefits -

• Swift and Seamless Loan Process - NBFCs are known for their fast, hassle-free loan processing. Unlike traditional banks that can involve lengthy procedures, NBFCs offer a streamlined approach with easy online applications and minimal paperwork. This ensures faster approval and disbursal—ideal for those who need funds in a hurry.
  
• Borrow as Much (or as Little) as You Need - NBFCs offer flexibility in loan amounts, making them suitable for a variety of needs. Whether it’s a small loan for a short-term cash gap or a larger amount for a big milestone like a wedding or renovation, you can tailor the loan to match your exact requirement.
  
• Customised Interest Rates Based on Your Credit - Worried about interest rates? NBFCs frequently offer personalized interest rates customised to your creditworthiness. A good credit score can help you secure a lower rate, which means you’ll pay less interest over time.
  
• Minimal Paperwork, Maximum Convenience - No more running around for documents. NBFCs require far fewer documents than traditional lenders, making the process simpler and faster. This reduced documentation helps speed up the approval and disbursal process.
  
• Quick Disbursal When You Need It Most - NBFCs understand that some needs are urgent, like a medical emergency or a last-minute expense. Once your loan is approved, the funds are usually disbursed within 24–48 hours, ensuring you're not left waiting in times of need.
  
• Easier Approval for Thin Credit Profiles - Don’t have an extensive credit history? NBFCs are often more flexible and willing to lend to individuals with limited credit backgrounds—such as first-time borrowers, freelancers, or young professionals—something traditional banks are hesitant to do.
  
• Relaxed Eligibility Criteria - NBFCs make borrowing accessible with simplified eligibility requirements. Lower income thresholds, flexible credit score expectations, and less rigid employment criteria open the door for more people to qualify for personal loans.
  
• Flexible Repayment Options - You can choose a repayment tenure that aligns with your financial situation, whether you prefer to repay quickly or spread the EMIs over a longer period for better affordability. This helps you manage your finances without feeling burdened.
  
• Support That Puts You First - NBFCs prioritize customer service. From guiding you through the application to answering your queries, they offer a personalized borrowing experience that’s often more approachable than traditional banks.
  
• 100% Digital Experience - In a digital-first era, NBFCs make loan applications and management seamless. Apply online, check your loan status, or manage EMIs through a mobile app—anytime, anywhere.

Eligibility Criteria for a NBFC's Personal Loan

Selecting an NBFC for a personal loan is a straightforward process. To apply for a personal loan through an NBFC, you’ll typically need to meet the following conditions:

• Age: The applicant must be between the ages of 21 years and 60 years old.
  
• Income: Salaried applicants should have a minimum monthly income of ₹20,000.
  
• Credit Score: While NBFCs are flexible, a credit score of 600 or above can significantly boost your chances of approval.
  
• Employment Stability: At least 1 year of continuous employment is required for salaried individuals.
  
• Residency: You must be an Indian citizen currently residing in India.

Documents Required for Verification of NBFCs' Personal Loan

You will have to submit the following proofs while you are taking a loan from an NBFC:-

To ensure a smooth and quick loan process, keep the following documents ready:

1. Identity Proof (Any one of the following):

• Aadhaar Card
• PAN Card
• Voter ID
• Passport
• Driving License

2. Address Proof (Any one of the following):

• Aadhaar Card
• Passport
• Utility Bill (electricity, water, gas – not older than 2–3 months)
• Rent Agreement (if applicable)

3. Income Proof:

• Salaried Individuals:
  • Latest 3 months’ salary slips
  • Last 3–6 months’ bank statements showing salary credits
  • Form 16 or latest Income Tax Return (optional but helpful)
    
• Self-employed Individuals:
  • ITR for the past 1–2 years
  • Business registration certificate
  • Bank statements (last 6–12 months)

4. Employment Proof:

• Employee ID card or employment letter
• Offer letter or appointment letter (if recently joined)

5. Photograph:

• Passport-sized color photograph

NOTE - NBFCs may ask for additional documents depending on your profile or loan amount.

What is the Need for a Personal Loan?

A personal loan is a flexible financial tool that helps individuals manage various planned or unexpected expenses. It is an unsecured loan, meaning you don’t need to provide any collateral or security. Here are some common reasons why people choose to take a personal loan:

1. To Handle Emergencies - Medical emergencies, sudden repairs, or urgent travel plans can create immediate financial pressure. A personal loan offers quick access to funds when time is critical.
   
2. For Wedding Expenses - Indian weddings can be expensive. Many families and couples take personal loans to cover venue booking, catering, décor, and other big-ticket wedding costs.
   
3. Home Renovation or Repairs - Want to upgrade your kitchen or fix a leaking roof? A personal loan can help you renovate your home without dipping into your savings.
   
4. Higher Education or Skill Development - Whether it's funding college fees or taking up a certification course, personal loans can be used to invest in your or your child’s education.
   
5. Debt Consolidation - If you're juggling multiple credit card bills or loans, a personal loan can help you combine all debts into a single EMI, often at a lower interest rate.
   
6. Travel or Vacation Plans - Dreaming of a holiday abroad or a family trip? A personal loan for travel makes it possible without waiting to save up for years.
   
7. Purchasing Big-Ticket Items - Want to buy new furniture, electronics, or a two-wheeler? A personal loan can help you afford expensive purchases with easy repayment options.

Different Types of NBFCs in India

NBFCs in India are categorized based on the nature of their business activities. The main types include:

• Investment Companies (ICs): Focus on acquiring securities and managing investments.
  
• Loan Companies (LCs): Provide loans and advances for various purposes, except asset financing.
  
• Asset Finance Companies (AFCs): Specialize in financing physical assets like vehicles, machinery, and equipment.
  
• Core Investment Companies (CICs): Hold shares and investments in group companies but do not trade them.
  
• Infrastructure Finance Companies (IFCs): Provide long-term funding for infrastructure projects.
  
• Micro Finance Institutions (MFIs): Offer small-ticket loans to low-income individuals and self-employed borrowers.
  
• Mortgage Guarantee Companies: Provide guarantees for housing loans extended by financial institutions.
  
• Housing Finance Companies (HFCs): Specialize in financing housing and real estate purchases.

Conclusion

You now have access to 10 top NBFCs for a Personal Loan, each offering attractive interest rates and flexible loan options. Whether you’re applying for a new loan or planning to do a balance transfer to reduce your interest burden, these NBFCs can help you save more. Additionally, choosing a longer repayment tenure can significantly lower your monthly EMIs, making it easier to manage your finances without stress.