Whether it is for an unforeseen medical emergency, or going on a vacation, or urgent repair work at home or even getting married, personal loans are a great enabler. They are quickly available, convenient and need no collaterals. Moreover, besides banks, major NBFCs in the country offer personal loans. Also, no strings on end use are attached to personal loans.
Almost all major NBFCs (non-banking financial company) in India offer personal loans. As consumerism has boomed, the demand for personal loans has caught the attention of all NBFCs, which aggressively market them. However, since these are unsecured loans they carry significant interest rates and various charges. One should ensure strict compliance with the repayment schedule so that one’s credit score is not adversely affected.
Top NBFCs offering personal loans
Major NBFC operating in India such as Bajaj Finance, Tata Capital, Aditya Birla Finance, Shriram Finance, L&T Finance, Muthoot Finance, Mahindra Finance offer personal loans. Please note than some documents are standard KYC requirements for personal loans. These are: standard KYC documents such as Aadhaar card and PAN card, salary slips for the 3 months immediately preceding the loan application. One could also ask for electricity bills or a bank passbook too.
What do interest rates on personal loans depend on?
While all NBFCs announce a wide band of interest rates on personal loans, the actual rate applicable to each customer depend on granular factors. These are: credit score, monthly income, the amount of loan applied for, whether the applicant has any ongoing loans to pay off, nature of employment etc. Good credit score for personal loan is extremely crucial. A credit score upwards to 750 is extremely favourable to clinch a relatively lower interest rate with all NBFCs.
- Tata Capital: Tata Capital interest rates range between 11.99% and 35%.
- Bajaj Finance: The interest rates from Bajaj Finance ranges between 11% and 32%.
- Aditya Birla Finance: The interest rates on personal loans from Aditya Birla Finance lies between 10$ and 32%.
- L&T Finance: The interest rate begins from 12%.
- Shriram Finance: The interest rates from this NBFC starts from 12%. Loans up to Rs 15 lakh needs no collateral.
- Muthoot Finance: Anyone between 21 years and 67 years is eligible for a personal loan.
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