Personal loans are the most preferred financial product by many people who require money for a particular purpose. Nevertheless, getting a loan can be difficult if one has a low CIBIL score. NBFCs are a proper substitute for conventional banks and provide better personal loans for bad credit for lower interest rates. They come with less rigorous qualifying criteria, quick turnaround, and hospitable terms to customers.
Here, the top NBFCs in terms of personal loans for individuals having low CIBIL scores and low interest rates will also be included in this article.
Top NBFC for personal loans
NBFCs have an important position in the credit market as they offer credit to those clients who can hardly get it in a bank. As a financial company, it does not have a banking license, although it is governed by the Reserve Bank of India (RBI).
| Article Topic | Top NBFC for personal loans |
| Country | India |
| Scheme | NBFC for personal loans |
| CIBIL Score | 750+ |
| Category | Finance |
In the case of personal loans, they are even more popular due to low paperwork, flexible documentation formalities and less need for time to approve the loans. Unlike the traditional banks that do not approve those who have low CIBIL scores, NBFCs analyse the borrower’s history, ability to repay and his/her stability of income to approve loans for everyone.
NBFCs: Redefining Credit Accessibility
NBFCs have carved a great place in the lending market by developing new primary products. Traditional banks do not consider such facts as critically significant, as NBFCs do not pay much attention to a borrower’s credit history.
- Diverse Loan Products: They offer loans from small ticket sizes to big amounts and they can fulfil most financial requirements.
- Digital Revolution: I found that the majority of the NBFCs incorporate the use of technology in the application and disbursal of loans.
- Personalised Credit Assessment: In addition to CIBIL scores, NBFCs look into income, employment status and ability to repay.
- Wide Reach: To add, NBFCs mainly focus their services on semi-urban and rural sectors to give credit to the wider public.
The above attributes of NBFCs make them a suitable source of finance for borrowers without rigorous credit criteria imposed on them.
Features That Set NBFC Personal Loans Apart
1. Low CIBIL Score Acceptance
Even NBFCs ease their rules for those who have a poor CIBIL score of as low as 600. Instead of blaming past defaults, they analyse the financial capability of the applicant today.
2. Customisable Loan Terms
Relative to the borrowers, they can choose loan terms as well as loan amounts depending on his or her financial state.
3. Faster Disbursal
Most of the NBFCs provide personal loans within 24-48 hours of the approval and therefore a popular choice in case of emergencies.
4. Loose Conditions of Collateral
Personal loans provided by NBFCs do not require collateral or guarantors, as these loan facilities do not require any security.
These facilities make NBFCs to be a viable option for those willing to obtain credit whether it is a low credit score or not.
Top NBFCs Offering Personal Loans
1. Aditya Birla Finance Limited
Aditya Birla Finance has the advantage of being completely digital, thus being Competitive with its loan products.
Key Highlights:
- Loan amount up to ₹50 lakh.
- Affordable and repayable in easy-to-form instalments of between one year and five years.
- Reduced criteria for the borrowers who have a steady income.
- Interest Rates: 14% per annum, depending on the borrower’s profile.
It makes a lot of sense for tech-savvy borrowers to approach this NBFC that emphasises convenient digital services.
2. IIFL Finance
India Infoline Finance Limited (IIFL) offers personal loans, which come in handy and often come with fast approvals and repayment.
Key Highlights:
- Personal loans for employees and loans for professionals and businessmen respectively.
- Subprime credit scores right down to 620 are allowed, provided that there is repayment proof strongly recommended.
- Loan amount of ₹ 1 lakh – ₹ 25 lakh.
- Interest Rates: From 13% with the possibility to change up or down depending on the risk profile of the given borrower.
Moreover, that is why IIFL Finance is relevant to those people who want mid-range loans and do not want to overcomplicate things.
3. Hero FinCorp
Hero FinCorp is a fast-growing NBFC involved in the provision of personal loans with a focus on customer needs.
Key Highlights:
- Approval of loans within a few hours on the Line of credit application process.
- Loan limits from ₹2000 to ₹5000 for low-income earners, ₹5000 to ₹25000 for moderately earned people, ₹25000 to ₹50000 for high earners and ₹50000 to ₹500000 for employees with regular income.
- No need for security or sureties.
- Interest Rates: Beginning with 14% and determined according to the credit prospects of an individual.
In my opinion, this is the NBFC, which is reasonably suited to borrowers seeking small amounts of funds at reasonably defined terms.
4. Shriram Finance
Shriram Finance is a reputed NBFC firm, that has been focusing on all sorts of people with different credit histories.
Key Highlights:
- Loan amounts from ₹ 50000 to ₹ 1,00,000/- to ₹ 10,00,000/- repayable throughout 12 to 60 months.
- That will accept clients with a credit score of as low as 600.
- Every single possible EMI rate depends on the borrower’s monthly income.
- Interest Rates: Starting from 12% per annum.
Shriram Finance is perfect for people in need of easy loans for the semi-urban and rural population.
Eligibility Criteria for NBFC Personal Loans
Most NBFCs evaluate loan applications based on the following criteria:
- Age: In most cases, applicants should be 21 years and above but below 60 years.
- Income: A regular monthly inflow is required; a minimum will change from NBFC to NBFC.
- Employment: The self-employed and the employees receiving their pay cheques are also allowed.
- Credit score: Admittedly, low scores are allowed, but one may have to prove regular repayment conduct.
- Residency: An Indian passport or valid Indian photo identity card is needed.
Subject to these conditions, one can get loans in NBFCs irrespective of his/her bad credit status.
Some Steps to Apply for a Personal Loan
Follow these steps to apply for a personal loan from an NBFC:
- Research Lenders: Based on the structure, one can compare interest rates, requirements for getting the loan, and people’s opinions to choose the best NBFC.
- Check Eligibility: The NBFC has a section on their website where they list down their formal loan eligibility criteria, so you should visit this section to check your loan eligibility.
- Gather Documents: They are Identity proof, Address proof, Income proof and Bank statements.
- Apply Online: You can complete the application form from the lender’s website, or you can apply personally at this branch.
- Verification: Once you submit it online, NBFC will analyse your documents and related financial information.
- Approval and Disbursal: After, the loan amount is approved is deposited into your bank 24-48 hours after application approval.
This efficient and effective system of funding enables needy applicants to secure funds without much hassle.
All You Need to Know
NBFCs have shaken up the lending market by offering many customers a convenient and flexible method of obtaining personal loans even in case of a weak CIBIL score. Money shops are specialised finance companies offering differential loan products at reasonable interest rates; some of the key players are Aditya Birla Finance, IIFL Finance, Hero Fin Corp, Shriram Finance, and Muthoot Finance.
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Samarth Choudhary is a Chief Editor at keralacobank.com. He has overall editorial experience of 10 years in online media. He has completed his graduation from University of California and masters in Finance from University of Dallas in year 2010. His major interest and expertise is in Finance, Taxes, Government Aid and Schemes. His Major focus is to help users to get relevant information which are published on keralacobank.com in easy and precise form.