NBFC Personal Loan: Bank Loans vs NBFC Loans

Easy eligibility criteria

For an NBFC loan, you don't have to navigate through lengthy or complicated eligibility criteria for personal loans that traditional lenders typically impose. The primary parameter that these progressive lenders consider is your credit score and overall financial profile.

A minimum CIBIL score of 650 or higher can get you instant approval with most reputable NBFCs. But here's the good news – even those with lower credit scores can still apply and get approved by demonstrating substantial monthly income, stable employment, and a promising career portfolio.

Why this matters: In sharp contrast, the eligibility terms set by traditional banks remain quite stringent and inflexible, especially for self-employed applicants, freelancers, or those with non-conventional income sources.

Pro tip: NBFCs often look at your overall financial picture rather than just checking boxes, making them more inclusive and understanding of individual circumstances.

Minimal to nil documentation

Here's where NBFCs truly shine! Existing or pre-approved customers often don't need to submit any documents when applying for a personal loan with a reputable NBFC. For new customers, the document requirements are refreshingly limited to basic OVDs (Officially Valid Documents) for KYC Verification, recent bank account statements, and the latest salary slips.

Contrast this with other lending institutions, where both existing and new customers typically have to submit extensive, lengthy paperwork that can be overwhelming. Traditional lenders usually require additional documents from self-employed applicants, including business registration papers, tax returns, profit-loss statements, and more.

Smart advantage: This streamlined documentation process means you can apply and get approved without the stress of gathering dozens of documents or making multiple trips to the lender's office.

Quick approval

Pre-approved customers can receive loan approval within a few minutes of applying with the best NBFC for a personal loan. In other cases too, you can get an unsecured loan approval in just 5 minutes* from reputed NBFCs.

This is not usually the case with traditional lenders, as they have more internal processes to comply with before approving an application.

Swift processing and disbursal

Leading NBFCs can process and disburse loan applications within one working day after approval. Borrowers can receive the money directly in their bank account in under 24 hours* with select non-banking financial companies. This makes NBFC loans the ideal funding option for urgent financial needs such as medical emergencies, sudden home repairs, or time-sensitive opportunities.

Real-world impact: When you need funds urgently – like for a medical emergency or to grab a limited-time investment opportunity – every hour counts. NBFCs understand this urgency and have built their processes accordingly.

The disbursal time for a personal loan from traditional lenders may extend anywhere between several days to a few weeks, making them unsuitable for urgent financial needs.

Completely online application process

Modern NBFCs like Bajaj Finance offer a 100% digital and completely paperless application process that you can complete from the comfort of your home. You only need to provide basic details such as your name, phone number, and city to initiate the procedure of applying for an NBFC loan online.

Exceptional customer service

Last but certainly not least, NBFCs have built their reputation on superior customer service that you can actually rely on. These progressive lending companies usually assign a dedicated customer relationship manager who is available to assist and guide you before, during, and after applying for or receiving an NBFC personal loan.

• Nationality: Indian
• Age: 21 years to 80 years.
• Employed with: Public, private, or MNC.
• CIBIL Score: 650 or higher.
• Customer profile: Self-employed or Salaried

*You should be 80 years or younger, at the end of the loan tenure.

Documents required for personal loan from an NBFC?

The documentation requirements for a personal loan can vary from lender to lender. Below are the personal loan documents that are required to be submitted when applying for a Bajaj Finserv Personal Loan: 

• KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register/ NREGA job card
• PAN card
• Employee ID card
• Salary slips of the last 3 months
• Bank account statements of the previous 3 months
• Piped gas bill
• Pension order
• Letter of Allotment of Accommodation Issued by Employer
• Property / Municipal tax receipt
• Utility bill
• Phone bill
• Real-time image / photograph
• Ration card

Check your eligibility for personal loan using just mobile number and OTP – 100% online process.