Personal Loans: Top 10 NBFCs offer loans at these interest rates; check full list | Mint

If you are staring at the shortage of funds on account of a wedding party that you have planned, an unanticipated emergency that has arisen, or a vacation that you have been looking forward to — you can arrange the money via a personal loan.

You can raise a personal loan from a government bank such as State Bank of India (SBI) or Bank of Baroda, or from a private bank such as HDFC Bank or ICICI Bank. But in case you are unable to raise it from a commercial bank — you can very well knock on the doors of a non-banking financial corporation (NBFC).

Let us first understand what an NBFC is?

What is an NBFC?

It is a company which is not a bank which could be involved in any financial business such as lending, leasing, insurance, accepting deposits in some cases, among others.

Here we list out the top 10 NBFCs in India which offer personal loans to customers across the spectrum. Let us suppose, 32-year Raj Mathur wants to get married and urgently requires ₹10 lakh as loan. He works with a private limited company and draws a salary of ₹1.25 lakh a month. For some reason, his loan application was rejected by the bank.

In view of the urgency of loan requirements, he continued to knock on more doors for the loan. Then he discovered that securing a personal loan from an NBFC is relatively far easier. Although it comes at a little extra cost (interest rate), he is not bothered by that at all.

In order to apply for personal loan with an NBFC, an applicant requires the following documents:

A. Last 3-months’ salary slips

B. KYC document – PAN card

C. Address proof such as electricity bill or bank statement

D. Identity proof such as voter ID or aadhaar

Although personal loan is an unsecured loan, there is not much at stake, but one has to still be careful about not paying a higher rate of interest, processing fee or pre-payment charges.

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

Top 10 NBFCs offering personal loan:

1. L&T Finance Holdings: You can take a personal loan at an interest rate starting from 11.50 percent per annum. One can take a personal loan for an amount up to ₹15 lakh without having to produce income proof. The process is completely digital and it ensures faster disbursal with zero paperwork, claims the NBFCs portal.

The loan can be repaid in a tenure that ranges between 12-48 months.

2. Aditya Birla Finance: Aditya Birla finance offers loans up to ₹50 lakh at lower interest rates to be repaid in a tenure of up to 7 years. The interest rate ranges between 10 to 16 percent. Applicants can club the income of co-applicant to enhance eligibility. Let us understand this with the help of an example. For example, 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 through this EMI Calculator

3. Cholamandalam Investment and Finance Company: Cholamandalam offers collateral free personal loans with convenient loan repayment options. The NBFC offers instant loan processing and has a presence in over 800 locations countrywide. The interest rate ranges widely based on your CIBIL score and overall profile.

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

5. Bajaj Finance: It offers loans at an interest of 11 percent 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 above and a CIBIL score of over 685.

6. Tata Capital Finance Service: Tata Capital Finance Service: One can apply for a loan between ₹75,000 to ₹35,00,000. The loan tenure is upto 6 years. Interest rate starts 10.99 percent per annum.

The NBFC allows part prepayment upto 25 percent of the principal outstanding at any time after 12 months of availing a personal loan without a penalty or additional fee. And for part prepayment of an amount over and above 25 percent will attract prepayment charges.

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

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

Documents that are required to avail personal loan include salary certificate, I-T return for the previous 3 years, ID proof and address proof.

9. HDB Financial Services: One can avail personal loan upto ₹20 lakh. The minimum annual income should be ₹1 lakh per annum for metro cities and ₹75,000 for non-metro locations.

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

10. Manappuram Finance: It offers personal loan at an interest of 12 percent per annum. The tenure ranges between 6 to 24 months. But one can borrow only up to ₹25,000 without collateral.

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

In order to get a personal loan from an NBFC, you need to be in the age group of 21-60. The documents required to get a personal loan include address proof, identity proof, 3 months’ salary slips and income tax return (ITR).

And the interest rates on personal loans start from 10-11 percent per annum, and go till 16-20 percent per annum. Needless to mention that the interest rates fluctuate on the basis of credit score, profile of applicant, net monthly income, amount of loan applied for.