Personal loans by NBFC
Non-banking financial companies (NBFCs) have personalised offerings, a broader reach, robust risk management frameworks, various co-lending agreements, and a dynamic digital presence, which has boosted the adoption of their credit facilities in India. Read on to know why borrowers prefer an NBFC loan against a bank loan.
Bajaj Finance Limited offers personal loans of up to Rs. 40 lakh with an interest rates starting at 11% p.a.
Advantages of getting a personal loan from NBFC
- Easy eligibility criteria
For an NBFC loan, you do not have to comply with lengthy or complicated eligibility criteria for personal loans with NBFCs. The primary parameter that these lenders consider is your credit score. A minimum CIBIL score of 685 or higher can get you instant approval. Those with low credit scores can also apply by indicating substantial income and a sound career portfolio.
In contrast, the eligibility terms set by banks remain quite stringent, especially for self-employed applicants.
- Minimal to nil documentation
Existing or pre-approved customers do not need to submit any documents when applying for a personal loan with an NBFC. For new customers, the documents required are limited to OVDs for KYC, bank account statements, and the latest salary slips.
In the case of banks, both existing and new customers may have to submit lengthy paperwork. These lenders usually require additional documents from self-employed applicants too.
- 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 banks, as they have more internal processes to comply with before approving an application.
- Swift processing
NBFCs can process an application within one working day after approval. Borrowers can thus receive the money in their account in under 24 hours* with select non-banking financial companies. This makes NBFC loans the ideal funding option for urgent needs such as medical emergencies.
The disbursal time for a personal loan from banks may extend anywhere between a few days and a few weeks.
- Completely online application process
We offer a 100% digital and paperless application process. You only have to provide basic details such as name, phone number, and city to initiate the procedure of applying for an NBFC loan online.
On the other hand, an online personal loan application process is still not available from several banks. This makes it more difficult as borrowers must visit a branch and apply in person.
- Exceptional customer service
Last but not least, NBFCs have superior customer service that can be relied on. These lending companies usually assign a customer relationship manager who is available to assist a borrower before and after applying for or sanctioning an NBFC personal loan.
On the other hand, such services with banks, especially those in the public sector, remain less customer-centric.
For all these reasons, opting for an NBFC personal loan is often seen as a better option. You can also get an instant personal loan of higher quantum from an NBFC (based on eligibility) as compared to a bank. Apply for a personal loan with Bajaj Finance to get attractive features and benefits against nominal interest rates. You can also use our personal loan EMI calculator to compute your monthly repayments in advance and opt for the loan amount that best suits your budget.
Types of NBFCs
Below are a few types of NBFCs in India you need to know:
- Deposit-taking NBFCs (NBFC-D)
- Non-deposit-taking NBFCs (NBFC-ND)
- Asset Finance Company (AFC)
- Loan Company (LC)
- Investment Company (IC)
- Infrastructure Finance Company (IFC)
- Systemically Important NBFCs (SI-NBFCs)
- Microfinance Institutions (MFI)
- Housing Finance Company (HFC)
- Core Investment Company (CIC)
Eligibility criteria to get a personal loan from NBFC
The eligibility criteria for a personal loan differs from lender to lender. You can qualify for a Bajaj Finserv Personal Loan once you meet the five simple eligibility criteria mentioned below:
- Nationality: India
- Age: 21 years to 80 years*.
- Employed with: Public, private, or MNC.
- CIBIL score: 685 or higher.
- Monthly salary: Starting Rs. 25,001, based on the city you live in.
*You should be 80 years* or younger, at the end of the loan tenure.
Documents required to apply for the loan from an NBFC
The documentation requirements for a personal loan can vary from lender to lender. Below are the 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
- PAN card
- Employee ID card
- Salary slips of the last 3 months
- Bank account statements of the previous 3 months
Why is an NBFC loan a better option than bank loans?
Non-Banking Financial Companies (NBFCs) offer certain advantages over traditional bank loans, making them a preferred option for some borrowers. One advantage is flexibility in lending criteria, allowing individuals with lower credit scores or unconventional income sources to access financing. NBFCs often have faster approval processes and less stringent documentation requirements than banks, making them suitable for borrowers seeking quick access to funds. Additionally, NBFCs may specialize in niche markets or offer specialized products tailored to specific needs, providing borrowers with more options. However, borrowers should carefully consider interest rates, terms, and fees before choosing between NBFCs and banks.
Bajaj Finserv app for all your financial needs and goals
Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.
You can use the Bajaj Finserv App to:
- Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
- Invest in fixed deposits and mutual funds on the app.
- Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
- Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
- Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
- Shop from over 100+ brand partners that offer a diverse range of products and services.
- Use specialised tools like EMI calculators, SIP Calculators
- Check your credit score, download loan statements and even get quick customer support—all on the app.
Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.
Frequently asked questions
Taking loans from Non-Banking Financial Companies (NBFCs) can be beneficial for individuals. They often provide more flexible lending options and faster approvals and cater to individuals with diverse credit profiles. However, borrowers should research and compare terms, interest rates, and customer reviews before deciding on an NBFC loan.
NBFCs such as Bajaj Finance Limited offer personal loans of up to Rs. 55 lakh, allowing you to fulfil your big-ticket purchases.
People prefer NBFCs for personal loans due to their flexibility in lending criteria, quicker processing, and ability to serve individuals with varying credit profiles. They offer accessible financial solutions, making them a preferred choice for borrowers.
NBFC personal loan comes with varying policies. These policies encompass interest rates, eligibility criteria, documentation requirements, and loan tenure. Interest rates can be fixed or floating, eligibility criteria may consider credit history and income, while documentation typically includes proof of identity, address, and income. Tenures of NBFC personal loans online vary but are generally more flexible than traditional banks.
Tenures of NBFC personal loans differ from lender to lender. With Bajaj Finance Limited, you can borrow a personal loan and repay it over the tenure of up to 96 months.
NBFCs registered under the Reserve Bank of India (RBI) encompass various categories. These include Asset Finance Companies, Investment Companies, Loan Companies, Infrastructure Finance Companies, Microfinance Institutions, and Systemically Important NBFCs. Each specialises in diverse financial activities, contributing to a diverse financial landscape.
The processing fee levied by Non-Banking Financial Companies (NBFCs) can vary widely and is typically based on factors such as the loan amount, tenure, and applicant's creditworthiness. It is advisable to check with specific NBFCs for their current processing fee rates, as these can change over time and may differ between companies.
Yes, Non-Banking Financial Companies (NBFCs) are authorised to provide an NBFC personal loan online to individuals. They operate outside the traditional banking system and play a significant role in consumer lending. However, the terms, interest rates, and eligibility criteria vary among all NBFC loans, apply online and make sure to research options before borrowing.
The single-borrower NBFC loan limit in India is typically set at 20% of the owned funds of the NBFC concerned. However, these limits can vary based on the regulations set by the Reserve Bank of India and other relevant authorities.
NBFC stands for Non-Banking Financial Company. It refers to financial institutions that offer banking services like loans, credit facilities, and investments but do not hold a banking license. NBFCs play a crucial role in the financial sector by catering to specific financial needs and supporting economic growth.
Determining the "best" NBFC for a personal loan depends on individual preferences, credit history, and specific financial needs. Some well-known NBFCs offering personal loans include Bajaj Finserv, Tata Capital, and HDFC Ltd. It's advisable to compare interest rates, terms, and customer reviews to make an informed decision.
