The Best NBFCs for Personal Loans in 2021

NBFC stands for Non Banking Financial Corporation. These are not banks, but private consortium of lenders. These can also be non-banking lending companies.

As alternatives to banks, NBFCs can also provide you with some of the most competitive deals when it comes to personal loans. Let us now take a look at some of the best NBFCs in India, offering the most attractive Personal Loan deals.

Bajaj Finserv Personal Loans

Bajaj Finserv Personal Loans are somewhat like the RBL Personal Loans in the sense that only salaried individuals can take these. Bajaj Finserv Personal Loans come with an attractive rate of interest and can give you till Rs. 25 lakhs. The loans are characterized by a flexible tenure, minimal documentation, free of collateral, and fund disbursal in 24 hours. There are no hidden charges whatsoever.

Let’s look at the Features and Benefits first: 

• Pay 45% lower EMIs with Flexi Personal Loan

• Your loan will be disbursed within 24 hours!

• High loan amount for all your needs

• Minimal documentation and online process

• Flexible tenure

• Zero hidden charges

• Instant approval

• Pre-approved loan offers for a faster process

Next up, the Eligibility Criteria:

The good news is that these criteria are comparatively easy to meet. These are the requirements:

• The minimum salary depends on area and city of residence

• Age limit is from 23 to 55

• The minimum CIBIL score is 750

• One needs to be a salaried employee of an MNC, or of a private or a public company

• One needs to be an Indian citizen

Documents needed:

• Passport-size photographs

• KYC Documents like PAN card, Aadhaar card, Driving license, Passport and Voter’s ID.

• Bank account statements for the past three months

Personal loan charges, fees and interest rates

Fee type	Amount
Interest rate	Onwards from 12.99%
Processing fees	Upto 4.13% of the total loan amount excluding taxes.
Bounce charges	Rs. 600 to Rs. 1200 per bounce, inclusive of all taxes
Penal interest	2% of the EMIs per month and taxes applicable till Rs. 200 each month with applicable taxes, whichever is more.
Part-payment charges	More than a month from the disbursal date, 2%+ taxes applicable from the total amount paid
Annual and additional charges	For Flexi-term loans- 0.25% plus applicable taxes on the total withdrawable amount For Flexi Hybrid loans- 0.25% plus applicable taxes on the total withdrawable amount

Till now, we have seen all the information regarding banks and the personal loans offered by them. Now, banks are not the only entities from whom you can get personal loans, or any other loan for that matter. What we will look at now are NBFCs (Non-Banking Financial Corporation) and their offerings. 

Tata Capital Personal Loans

Has a financial emergency cropped up out of nowhere? Need cash lightning-fast? Don’t worry! Tata Capital is one of the NBFCs which can help you out. 

This entity provides personal loans for a wide variety of reasons such as education, medical emergency, travelling, and marriage. Its interest rate is one of the lowest in the industry, starting at 10.99%. The tenure is also one of the longest in the industry, giving you the opportunity to spread your payment over a longer period of time and to ensure that the loan is paid back. You can get a loan from Rs. 75,000 to Rs. 25 lakhs.

Now, let us look at the loan details.

Eligibility and documentation

	Eligibility	Documents
Salaried individuals	Age should be within 22 and 58 years Monthly income should be Rs. 15,000 minimum Work experience should be 1 years minimum	Voter ID and/or Adhar Card ID Proof Residence proof Income documents (copy of 6 months bank statements) Employment certificate
Self-employed individuals	Age should be within 22 to 58 years Monthly income should be Rs. 15,000 minimum Work experience should be 1 years minimum	Voter ID and/or Adhar Card ID Proof Residence proof Salary slips of the last 3 months

 

We will now look at the charges and fees.

Charge	Amount
Processing fees	Till 2.75% of the total loan amount + GST
Additional/Penal interest	3% of overdue amount + GST
Bounce charges	Rs. 600 for each bounce incident + GST
Mandate rejection service charge	Rs. 450 + GST
CCOD annual maintenance charge	0.25% on the dropline amount + GST or Rs. 1000, whichever is more
Outstation collection charge	Rs. 100 + GST per instance
Statement of accounts	Soft copy- no charge Branch walkin- Rs. 250 + GST
Loan cancellation charges	Rs. 5750 or 2% of the loan, whichever is higher + GST
Instrument swap charges	Rs. 550 + GST
Duplicate repayment schedule	Soft copy- no charge Branch walkin- Rs. 550 + GST
Duplicate NoC	Rs. 550 + GST
PDC charges	Rs. 850 + GST
Foreclosure charges	No charges for the first 6 months 4.5% of the principal outstanding + GST
Foreclosure charges for top-Up	2.5% of the future principal outstanding from the current loan + GST
Foreclosure charges for CCOD instances	No charges for the first 6 month 4.5% on the concerned dropped-down limit amount + GST
Foreclosure letter charges	Rs. 199 + GST only in case of branch walk-in

 

SBFC Personal Loans

You are probably wondering what SBFC is. Maybe it is associated with the SBI? Not at all! It is an independent and private Non Banking Financial Corporation which offers loans at attractive rates, including personal loans. The company is one of the most well-known NBFCs, having 92 branches in 62 cities serving over 1 lakh customers.

Here are the particulars of the loan: 

• Maximum loan amount: Rs. 10 lakhs

• Maximum loan tenure: 5 years

• Suitable for: Both Salaried and Self-employed individuals

• GST rate is 18%for all products and services.

Documents you need:

• ID proof including Aadhar card, PAN card and Passport

• Address proof including utility bills, Aadhar card and passport

• PAN card for KYC documents

• Bank statements and income documents.

Cashkumar Personal Loans

Cashkumar is a certified RBI-licensed NBFC-P2P in India. One of the best things about Cashkumar, another NBFC, is that it does not ask for asset guarantee or securities. These loans are not paid by any institution, but are on a Person-to-Person basis. As such, it helps the lender to earn on interest, and therefore it is much akin to crowdfunding. 

This is how it works: the website matches your credentials with that of the lender with the appropriate risk appetite. The loan needs to be paid back with interest within the set time frame. This way, you can get the loan without drawbacks. You can get these personal loans for:

• travel

• marriage/weddings

• debt consolidation

• medical needs

• goods purchases

• home renovation

Whether your requirement is small or urgent, you can get personal loans here. Cashkumar allows you to take loans from Rs. 20,000 to Rs. 1,00,000 even as a first-time user and where the tenure is between 3 to 12 months depending on your eligibility. There Rate of Interest will be between 18% to 24% per annum.

The eligibility factors are that you need to:

• Be at least 21 years of age

• Be a salaried professional

• Be a working professional in any of the mentioned 30 cities in India

Features of Cashkumar personal loans

• The amount you can get may vary from Rs. 20,000 to Rs. 1,00,000 for new borrowers and till Rs. 1,50,000 for known customers.

• The loan tenure is between 3 months to 12 months.

• There is no need for security or collateral.

• There are no application charges.

• The flat rate of interest is from 18% to 24%.

• There’s a one-time processing fee of 4% of the total amount or Rs. 2000 (excluding GST), whichever is higher.

• Pre-closure is allowed only after 3 EMIs are paid. There are no extra processing fees. Closure is allowed as well after the payment of 3 EMIs as long as the interest of these EMIs is paid along with the outstanding principal amount.

• Loans can be taken for a wide variety of reasons

• Documentation process is fast and easy with online submission. 

Now, you may be thinking, why on earth should you trust Cashkumar when there are other NBFCs? Well, wait till you see the awesome features.

Features

• Personal loans for a wide variety of reasons

• Loan amounts from Rs. 20,000 to Rs. 1,00,000, which is not not offered by most financial institutions. You also get the benefits of a small loan tenure and zero pre-closure charges. 

• Most profiles are eligible to apply for as these funding decisions are taken by lenders with the appropriate risk appetite.

• The loans can be used to close out high-interest credit cards that have heavy processing fees or in the case of debts with high EMIs.

• Fast approval and processing due to the entire process being online.

Documents you will need

• Photograph

• PAN Card

• KYC (Identity and Address Proof)

• Bank Statements for the last 3 months

• Salary slips

• House ownership proof (if any)

• Permanent address proof

• Proof of employment

Eligibility criteria

• The candidate needs to be at least 21 years of age at the time of taking the loan. The maximum age is 60 years at the time of closing the loan.

• The candidate should be a salaried employee of the government, a private limited company, various institutions, or of a partnership or proprietorship.

• The minimum income should be Rs. 20,000 for non-metro cities and Rs. 25,000 in metro cities.

• The total work experience should be 6 months

Well, then! We have successfully covered the major banks and NBFCs offering personal loans!

Update:

Loan sanctions by NBFCs or Non-Banking Financial Corporations fell by a huge 15% on the 4th Quarter of year 2019-2020.

FIDC or the Finance Industry Development Council revealed that sanctions of NBFCs totaled Rs. 2,56,330 crore in the quarter ending on March 31st, 2020. Compare this to Rs. 3,02,654 crores in the same period just 3 years back.

It should be remembered that it was not all a bed of roses last time either. In the 4th quarter of 2018-2019, there was a 31% reduction in sanctions. This was due to the effect of IL&FS. Thus, the reduction was 15% even though there was the problem of low volume. Tamil Nadu, Maharashtra and Delhi showed a decline last time, while Gujarat remained stable.

 Leaving aside bank guarantees, education and personal loans, property loans, home credit finance and others, sanctions in the rest of the categories have declined.

Data says that secured business loan sanctions dropped by 52% in the 4th quarter of the last fiscal year. Housing loans dropped by 31%.

Personal auto loan sanctions dropped by 32% from January to March, while two-wheeler loans dropped by 18%. Sanctions for second hand car loans also went down by 14% during the same period. Loans for used tractors dropped by 19%.

Consumer loans plunged by 6% while sanctions for gold loans went down by 22% in the 4th quarter of the last fiscal.

It is expected that loan sanctions will fall even further in the 1st quarter of the current fiscal year.