For someone who requires a quick personal loan, now there is an alternative to banks. It is not just more convenient but also comparatively faster. Indeed approaching NBFCs for personal loans could work well for you in more ways than one, provided you meet the eligibility criteria and have all the required documents.
NBFC is an acronym that expands into Non-Banking Financial Companies. Although these are strict as banks, the process involving loans is much less stringent. Even the personal loan interest rates charged by NBFCs work out to be lower compared to banks. Thus, these are viable alternatives to counter financial emergencies.
A personal loan from NBFC – eligibility criteria
When you opt for NBFCs for personal loans, mentioned as follows are the eligibility criteria that you must mandatorily satisfy for timely disbursal of the amount –
Personal documents – As a borrower, you would need to provide proof of address through utility bills, rental agreement, driving license, or ration card. You will also need to provide proof of identity, and a PAN card or Aadhar Card works best. Your passport, voter’s id, and driving license can also serve the purpose.
Proof of income – Any financial institution would prefer to disburse a loan to a borrower who enjoys a stable income. An NBFC is no exception to this rule. Therefore, when you apply to NBFCs for personal loans, keep all documents related to your income, like a bank statement, IT returns, salary slips, etc. All of these can prove that you have a regular source of income and hence are a worthy candidate for receiving a loan.
CIBIL score – The higher your CIBIL score, the better are your chances of receiving a loan at lower interest rates from an NBFC. Financial institutions do put a lot of weight on the CIBIL score of the individual, especially when it concerns determining personal loan interest rates. As a general rule, a CIBIL score of 750 and above is ideal for attracting a lower interest rate. Likewise, anything lower than 750 is likely to cause the interest rate to shoot up.
Age – Only individuals above 21 years can apply to NBFCs for a personal loan. Anyone under this age limit is not eligible to apply.
Work experience – In the absence of a specific benchmark regarding this aspect, the eligibility requirement varies from one institution to another. Hence, while some NBFCs might specifically ask for a minimum of 3 years of work experience, others might settle for a lesser number of years or might request a longer duration.
Other miscellaneous factors which impact your eligibility and personal loan rates with NBFCs are your current location and the organization where you work. Whether you live in your own house or rental accommodation also matters. Since these factors may impact your ability to pay back the amount, NBFCs may consider them while determining if you are eligible for a quick personal loan.
Final thoughts
Undoubtedly, approaching NBFCs for personal loans has its share of advantages. Primary among them is the online application facility. All you need to do is visit the website of the NBFC and fill in the details mentioned in the form. Most websites also feature an online calculator wherein you can check if you are eligible to apply for a quick personal loan and then provide the information. After submission, approval is usually granted within a day, and disbursal might take another day or so. Thus the need to constantly follow up and visit the premises is eliminated.
An NBFC is a relatively more flexible option for availing loans compared to banks in terms of personal loan interest rates, the application process, and EMI. Bajaj Finserv is a reputed and reliable NBFC that has been operating in the Indian financial scenario for the past decade and is a viable option for anyone requiring a quick personal loan.
