Personal Loans by NBFCs 2026

Different Types of NBFCs

Tata Capital Personal Loan

Tata Capital offers an unsecured personal loan, meaning you do not need to provide any collateral such as property or fixed deposits. This makes it easier for individuals to access funds for personal financial requirements without pledging any assets. 

Loan Amount Range  

You can borrow anywhere from Rs.40,000 up to Rs.35,00,000, depending on your eligibility and financial profile.  

Purpose of Loan  

The personal loan can be used for a variety of purposes, including medical emergencies, home renovations, travel, weddings, or other personal financial needs. There are no restrictions on how the funds are used, giving borrowers complete freedom.  

Interest Rates  

The interest rates start at approximately 10.99% – 11.50% per annum, depending on your creditworthiness, income, and other eligibility factors.  

Loan Tenure  

Borrowers can choose repayment terms of up to 6 years, which allows for manageable monthly instalments tailored to individual financial situations.  

Processing Fee  

A one-time processing fee of up to 3.5% of the loan amount plus applicable GST is charged at the time of loan disbursal. 

Penal Charges  

In case of delayed payments, Tata Capital charges 3% per month on the overdue amount, which is equivalent to an annualised penalty rate of approximately 36%.  

Eligibility for Salaried Applicants  

Typical requirements include: 

1. Age: Between 21 and 58 years 

1. Minimum Monthly Income: Rs.15,000 

1. Employment: At least one year of continuous work experience 

Note: These criteria are indicative and may vary based on individual profiles and credit assessments.  

Documentation Required 

Borrowers are required to submit minimal documentation, such as:  

1. Valid photo identification (Voter ID, Passport, Driving Licence, Aadhaar Card) 

1. Proof of address (can use the same documents as above) 

1. Salary slips for the last two months 

1. Bank statements for the last three months reflecting salary deposits 

1. Employment certificate confirming at least one year of continuous employment 

Application Process  

The application process is fully online and straightforward. Applicants can apply via the Tata Capital website, over the phone at 1860 267 6060, through WhatsApp, or by interacting with TIA, Tata Capital’s 24×7 virtual assistant. Approval is quick, and minimal paperwork ensures a hassle-free experience.  

Repayment Options  

Repayment is convenient and flexible. Borrowers can pay their EMIs online through the Tata Capital website or mobile app. Alternatively, cheques can be deposited at nearby branches if preferred. 

Key Advantages  

Tata Capital personal loans provide quick access to funds, require minimal documentation, offer flexible repayment terms, and are suitable for a wide range of personal financial needs. The combination of competitive interest rates, high loan limits, and an easy application process makes it a convenient solution for salaried individuals seeking financial support.  

Mahindra Finance Personal Loan

Mahindra Finance offers personal loans designed to meet a variety of individual financial needs. These are unsecured loans, so you do not need to provide collateral, making the borrowing process simpler and more accessible. 

Loan Amount Range 

Borrowers can access amounts from Rs.50,000 up to Rs.15,00,000, depending on eligibility and financial profile. This range provides flexibility for smaller expenses or larger life events.  

Purpose of Loan  

These loans can be used for weddings, home renovations, debt consolidation, or other personal expenses. The funds are disbursed with the goal of giving borrowers the freedom to use them according to their priorities.  

Interest Rates  

Interest rates are attractive and competitive, but vary depending on the applicant’s credit profile, income, and repayment history. The exact rate is determined individually at the time of loan approval.  

Limited Interest Duration Option 

Mahindra Finance allows borrowers to pay interest only for 12 to 24 months, reducing the initial financial burden and helping manage cash flow in the early stages of the loan.  

Loan Tenure / Repayment Period  

Borrowers can choose a repayment period of 24 to 60 months, with flexibility to manage monthly EMIs. There is no pre-payment penalty after six months from disbursal, making it easier to repay early without extra cost.  

Processing Fee 

A processing fee of 2% of the loan amount or Rs.5,000, whichever is lower, is charged at the time of loan disbursal.   

Pre‑closure/Part‑payment Charges  

Pre-closure or part-payment of the loan within the first 6 months incurs a 4% charge on the principal outstanding. After six months, borrowers can pre-pay or make partial payments without additional charges.  

Late Payment Penalty 

If an EMI is not paid on time, a 3% per month penalty on the unpaid amount is applied, calculated daily. Timely repayment is encouraged to avoid these additional costs.  

Cheque / NACH Bounce Charges 

Each instance of a bounced cheque or NACH transaction attracts a charge of Rs.450.  

Other Fees 

Additional administrative fees such as statement requests, stamping charges, or legal costs may apply in certain circumstances. Borrowers should review the fee schedule carefully before applying.  

Eligibility – Existing Customers  

Loans are available to existing Mahindra Finance customers with a good repayment history, ensuring that responsible borrowers can access additional financial support.  

Eligibility – Mahindra Group Employees  

Mahindra Group employees aged 21 to 58 years with at least 2 years of continuous service are eligible for loans.  

Documentation Required 

Borrowers generally need to provide:  

• PAN card (mandatory for KYC)  

• Additional photo ID (Voter ID, Aadhaar with masked digits, or Passport)  

• Address proof (telephone bill, gas bill, or bank statement)  

• Last three months’ salary slips  

• Last three months’ bank statement in PDF format  

• Cancelled cheque  

• Passport-size photograph 

Application Process  

Applicants can apply online through a quick 4-step process or visit the nearest Mahindra Finance branch. 

Key Advantages  

Mahindra Finance personal loans provide quick access to funds, flexible repayment options, minimal documentation requirements, and are particularly suitable for existing customers and Mahindra Group employees. They are structured to support major life expenses while ensuring affordability and convenience. 

IIFL Finance Personal Loan

IIFL Finance provides unsecured personal loans, meaning no collateral is required. The loans are designed to meet diverse personal financial needs, making it easier to access funds without pledging assets. 

Loan Amount Range  

Borrowers can access between Rs.5,000 and Rs.5,00,000.  

Purpose of Loan  

The loan can be used without restrictions. This flexibility allows the borrower to use the funds for weddings, vacations, home repairs, medical emergencies, or other personal financial goals.  

Interest Rates  

Rates range from 12.75% to 44% per annum on a reducing balance basis, depending on the borrower’s profile. With certain high-credit customers who have pre-approved offers, rates can go as low as 10.49% p.a. 

Loan Tenure / Repayment Period  

Flexible repayment periods are available from 3 months to 42 months.  

Processing Fees  

Fees range from 2% to 9% of the loan amount plus GST, with an additional convenience fee of up to Rs.500. 

Bounce Charges  

A charge of Rs.500 plus GST per instance applies for NACH or E-Mandate returns.  

Collateral Requirement  

There is no collateral for these loans.  

Part-Payment Facility  

Borrowers can make part payments toward the principal whenever convenient. It depends on the lender’s terms and conditions. 

Documentation Required  

1. Salaried individuals: Identity and address proof (Aadhaar, PAN, Passport, Voter ID), last 3 months’ salary slips, and last 6 months’ bank statements. 

1. Self-employed individuals: Identity and address proof, business registration proof, last 2 years’ ITR, and last 12 months’ bank statements. 

Eligibility 

1. Salaried Applicants: Applicants should be aged 23–58 years, with a minimum monthly income of Rs.25,000, at least 2 years of total work experience (1 year in current company), and a CIBIL score of 700 or above. This ensures reliability and reduces default risk. 

1. Self-Employed Applicants: Must have a minimum of 3 years in business, an annual turnover of at least Rs.5 lakh, and a CIBIL score of 700 or above. This ensures that self-employed borrowers have sufficient financial stability and creditworthiness. 

Application Process  

The entire loan process is digital-first, allowing borrowers to apply online through the IIFL website or app. 

Key Advantages 

IIFL Finance personal loans offer fast digital processing, flexible EMIs, with minimal documentation. There is no collateral requirement and has pre-approved offers for high-credit customers. 

HDB Financial Services Personal Loan

HDB Financial Services offers unsecured personal loans, meaning borrowers do not need to pledge collateral or provide a guarantor. These loans are designed to meet both planned and unexpected financial needs, offering convenience and quick access to funds. 

Loan Amount Range  

Borrowers can access amounts up to Rs.20 lakh, depending on eligibility and profile. 

Purpose of Loan  

Funds can be used for a wide range of personal and business purposes. It can be for medical expenses, weddings, education, travel, and home renovation. 

Interest Rates  

Interest rates are competitive and customised based on loan amount, applicant profile, and repayment capacity.  

Loan Tenure / Repayment Period  

Borrowers can choose repayment periods ranging from 12 months to 60 months.  

Unsecured Loan  

No collateral or guarantor is required.  

Top-up Loan Facility  

Existing HDBFS customers with a good repayment history may be eligible for a top-up loan.  

Balance Transfer Facility  

Borrowers can transfer existing personal loans from other lenders to HDBFS to take advantage of competitive interest rates. 

Processing and Disbursal  

The process is fully digital, with fast approval based on submitted documents and eligibility. 

Minimal Documentation  

Documents typically required include: 

• Identity proof (PAN card mandatory, plus Aadhaar, Passport, or Voter ID) 

• Address proof (utility bills or bank statements) 

• Income proof (salary slips, bank statements, or business financials) 

Note: Documentation requirements vary slightly depending on whether the borrower is salaried or self-employed. 

EMI Payment  

HDBFS offers E‑NACH facilities for automatic EMI deductions.  

Application Channels  

Borrowers can apply via multiple channels:  

• Online through the HDBFS website 

• Using the HDB OnTheGo app for a fully digital process 

• Visiting the nearest HDB branch 

• Calling customer support at + 91‑4442984541 for assistance 

Key Advantages 

HDBFS personal loans provide quick loans, flexible repayment terms, and minimal documentation. They also have top-up and balance transfer facilities, and unsecured borrowing. 

Aditya Birla Capital Personal Loan

Aditya Birla Capital offers unsecured personal loans, meaning no collateral or guarantor is required. These loans are designed to provide quick access to funds for a wide variety of personal financial needs. 

Loan Amount & Tenure  

Loan amounts and repayment periods are flexible and tailored to individual requirements and eligibility.  

Purpose of Loan  

These loans can be used for travel, weddings, education, home renovations, or other personal expenses. 

Interest Rates  

Interest is based on the borrower’s profile and product type: 

• Loans up to 12 months – linked to the Short-Term Reference Rate (STRR), currently  at 19.45% p.a. (as of 1 March 2024) 

• Self-employed non-professionals – linked to the Long-Term Reference Rate (LTRR), currently at 20.45% p.a. (as of 1 March 2024)  

Note: Rates may vary for individual applicants and can be lower for pre-approved or high-credit borrowers. 

Processing Fees  

The processing fees can go up to 4% of the sanctioned amount which is charged at disbursal.  

Cheque Return Charges  

The charges for cheque returns are Rs.1,000 plus GST. 

Penal Charges for Late Payment  

The borrower will be charged 3% per month (36% p.a.) on overdue amounts to encourage timely repayment and manage default risk. 

Loan Cancellation Charges  

There is a charge of 4% of the disbursed amount and applicable taxes if the loan is cancelled after disbursal. 

CIBIL Report Retrieval Charges  

Individual credit reports will be charged Rs.50 and Rs.500 for commercial credit reports. 

Part Pre-payment  

There are no charges for term loans if the pre-payment is less than or equal to 20% of principal outstanding. The borrower will be charged up to 4% if above 20%.  

No charges for pre-payments made via mobile app or web portal for flexi loans. 

Foreclosure  

After 12 months after disbursal, the borrower can pay 4% of the principal outstanding for a term loan and 4% of the total withdrawable amount for a flexi loan.  

Balance Transfer Facility  

There is a facility to transfer balance from other lenders.  

Top-up Loan Facility  

Depending on the repayment history and eligibility, existing borrowers can get top-up loans at competitive interest rates.  

Digital Tools  

Online EMI calculators help the borrows plan, calculate, and compare loans  

Key Advantages 

Aditya Birla Capital personal loans offer flexible EMIs, transparent charges, balance transfer and top-up options, and tailored interest rates.  

Significance of Personal Loans by NBFCs 

The importance of NBFCs offering personal loans are as follows:  

1. Expands Financial Access: NBFCs extend credit facilities to a wider segment of the population, including individuals with moderate credit scores, irregular income, or unconventional employment profiles who may be declined by traditional banks. 

1. Supports Urgent Financial Needs: With faster loan processing and minimal documentation, NBFC personal loans help borrowers meet urgent expenses such as medical emergencies, weddings, travel, or debt consolidation without lengthy delays. 

1. Promotes Financial Inclusion in Rural and Semi-Urban Areas: Many NBFCs have a strong presence in areas where bank branches are limited. Their outreach enables people in underserved regions to access credit facilities, supporting local business and personal growth. 

1. Offers Flexible Repayment Options: Borrowers can choose customised repayment tenures and EMI schedules based on their income and cash flow, which helps reduce financial stress during the loan term. 

1. Encourages Tailored Lending Solutions  NBFCs often design personal loan products that cater to specific borrower profiles, making the lending process more personalised and borrower-friendly compared to rigid bank loan structures. 

1. Drives Competition in the Lending Market  By offering competitive interest rates and faster services, NBFCs encourage traditional banks to improve their own offerings, benefiting borrowers overall. 

Personal Loan from NBFCs- Benefits 

The advantages of taking a personal loan from NBFCs are:  

1. Faster processing and disbursal: NBFCs generally have quicker loan approval systems with minimal paperwork. Many use advanced digital verification methods that reduce delays, allowing borrowers to receive funds within a short time. 

1. Flexible eligibility criteria: NBFCs cater to a broader segment of customers, including salaried employees, self-employed professionals, freelancers and individuals with moderate credit scores. This flexibility makes loans more accessible. 

1. Higher loan approval rates: The approval process at NBFCs is often more customer-friendly compared to traditional banks. Even applicants with less-than-perfect credit scores or irregular incomes have a higher chance of approval. 

1. Competitive interest rates: Many NBFCs offer interest rates starting from 10.99% p.a., which can be competitive with bank rates. For creditworthy applicants, rates can be just as low as those offered by leading banks. 

1. Customised loan products: Borrowers can choose repayment tenures, EMI structures and loan amounts that match their income flow and repayment capacity. Some NBFCs offer seasonal or step-up repayment options. 

1. Wider geographical reach: NBFCs operate extensively in rural and semi-urban areas. Their agent networks and online platforms allow customers in remote locations to access credit without visiting a physical branch. 

Disadvantages of NBFC Personal Loans 

1. Higher rates for low credit scores: Borrowers with poor credit may face higher interest rates.  

1. Possible higher charges: Processing fees, prepayment fees, or foreclosure penalties may be higher than banks.  

1. Variable service quality: Customer service standards vary widely; research is recommended before applying.  

1. Lower regulatory oversight (in some cases): Smaller NBFCs may have less supervision than scheduled banks.  

1. Limited branch access for some NBFCs: While digital is strong, not all NBFCs have widespread physical presence.  

1. Risk of over-borrowing: Easy access and flexible terms may encourage some borrowers to take more debt than manageable.  

1. Variable transparency: Terms and charges may differ between NBFCs; some smaller lenders may be less transparent.  

1. Interest rate variability: Rates may fluctuate depending on profile, loan type, or tenure; not always fixed.  

1. Limited government-backed safeguards: Unlike banks, NBFCs may have fewer deposit insurance or government guarantees.

NBFC Personal Loans vs Bank Personal Loans 

The table below outlines the difference between personal loans from Banks and NBFCs:  

Things to Keep in Mind Before Applying for a Personal Loan from an NBFC 

Check the total cost of the loan -  Review processing fees, prepayment penalties, foreclosure charges and late payment fees before accepting any offer. 

Ensure eligibility before applying - Understand the lender’s criteria to avoid unnecessary rejections that may affect your credit score. 

Evaluate repayment capacity - Make sure the EMIs fit comfortably within your monthly budget to prevent defaults. 

Compare multiple offers - Use online loan marketplaces to check interest rates, processing fees and terms from different NBFCs before deciding. 

Maintain a good credit score - Although NBFCs are more flexible, a higher score can still get you better interest rates and terms. 

A good credit score can help you secure lower interest rates on loans and credit cards.

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