Updated on - 14 May 2024 

NBFC Personal Loan

For a very long time, banks were the only options available for those looking to avail loans. But with the coming in of NBFCs like Moneyview, this has completely changed.

NBFC Loans or NBFC personal loans come with several advantages that set them apart from regular financial institutions such as banks which contributes to their popularity.

Did you know that certain lenders such as Moneyview also have more lenient credit score cut-offs? As long as applicants have a CIBIL score or Experian score of over 650, they can avail personal loans.

Top 10 NBFC's in India

There are many NBFCs in India that offer personal loans at attractive interest rates. Here is a list of the top 10 NBFCs in India along with the loan amount and the interest rates offered by them - 

The rates mentioned above are accurate as of May 7. 2024. They are subject to change according to the lenders and markets.  

Why are NBFC Loans so Popular?

NBFC full form is Non-Banking Finance Companies and they are popular due to multiple reasons - 

• NBFC loans are easy to avail as compared to those from banks or other traditional lenders

• The documentation requirements are minimal and there is no requirement to submit photocopies or even physical copies of documents if the application is done online

• NBFC personal loans are instantly disbursed, while certain banks may take a few days to disburse the loan amount. In fact, lenders such as Moneyview provide the loan within 24 hours of application approval in most cases

• The eligibility criteria for personal loans from NBFCs are less stringent as compared to traditional loans. This means that applicants can avail personal loans a more easily

NBFC Personal Loans Vs. Bank Personal Loans

There are a number of differences between the features of an NBFC personal loan and that of a bank as given below -

Loan Eligibility

The eligibility criteria imposed by NBFCs are a lot more flexible as compared to those required by banks. For example, most NBFCs require applicants to fulfill the following eligibility criteria* -

• Should be between 21 years to 57 years

• Should have an income of at least Rs.13,500 per month

• May lend to self-employed applicants

Banks on the other hand are a lot stricter when it comes to income requirements, especially for those who are self-employed.

* Disclaimer - This information can vary from one lender to another.

Documentation Requirements

Nobody wants to run from pillar to post trying to get multiple copies of multiple documents. But you might have to do this if you are applying for a personal loan from a bank.

But this is not the case for most NBFCs. The documentation requirement is minimal, sometimes requiring only your identity, address, and income proof.

Processing Time

While the processing time required for a loan varies from lender to lender, banks generally take anywhere between a few days to a few weeks. This includes the time required to verify documents, approve the loan application, etc.

On the other hand NBFCs have started providing loans with just a few hours of approval time making this the perfect choice for those looking for instant personal loans. For example, Moneyview provides loans within 24 hours of loan application approval, in most cases.

Application Process

The traditional way of applying for a loan is to visit the lender, fill in the required forms, provide documents, and wait for approval. This process is cumbersome and time consuming. With NBFCs however, the entire process is hassle-free and quick as it is all online.

Credit Score Requirement

Your credit score is one of the most important factors that lenders take into consideration. Higher the score, higher is the chance of availing a loan at low interest rates. Most banks require applicants to have a CIBIL score of 750 or above. 

But when it comes to NBFCs, you can get loans with a CIBIL or Experian score of 650 or above. You may have to pay a higher interest rate but the loan will be approved.

NBFC Personal Loans Vs. Bank Personal Loans - At a Glance

While banks have been the traditional source for personal loans for a long time, NBFC personal loans are gaining popularity due to the many reasons mentioned above. 

Here’s a quick comparison of NBFC loans (NBFC personal loans in particular) and bank loans with respect to the various features offered by each.

Conclusion

While NBFC loans are relatively new as compared to banks, there are a number of advantages to choosing these loans. 

Quicker processing time, great customer service, hassle-free application process are just some of the reasons for the popularity of these loans. Additionally, the credit score requirements are also a lot more flexible making NBFC personal loans one of the more popular loans available in the market.

If you are looking for a personal loan that fulfills all the criteria mentioned above, visit the Moneyview website or download the app and apply today.

About the Author

Medha is a writer passionate about untangling money matters. She breaks down complex financial topics into clear and actionable advice, helping you make informed decisions for a secure future. Navigate the financial world with her!