Currently, you can instantly lend a personal loan from NBFC companies. Enjoy a digital personal loan without restrictions for medical emergencies, debt consolidation, travel, or business needs.
While banks dominate the lending space, non-banking financial companies (NBFCs) have emerged as strong competitors, offering faster processing, flexible eligibility, and competitive interest rates.
But before you apply, it’s important to understand how NBFC personal loan interest rates work, what affects them, and how they compare with banks.
What are NBFC Personal Loan Interest Rates?
Interest rates are essentially the cost of borrowing. NBFCs, like banks, charge interest on personal loans, but the rate depends on your profile, creditworthiness, and repayment ability. Unlike banks that often have hard criteria, NBFCs may extend credit to a wider pool of borrowers—sometimes at a slightly higher rate to balance risk.
Typical Interest Rate Range in India
On average, NBFCs in India offer personal loans at interest rates ranging from 10% to 36% per annum, depending on the borrower’s risk profile.
- Prime borrowers (high credit score, stable income): 10% – 16% p.a.
- Average borrowers (moderate credit score, variable income): 16% – 24% p.a.
- High-risk borrowers (low credit score, irregular income): 24% – 36% p.a.
While NBFCs sometimes charge higher rates than banks, they make up for it with quicker approvals, minimal documentation, and flexible loan amounts.
Compare Various NBFC Companies Personal Loan Interest
| NBFC | Interest Rate Range (p.a.)* |
| Tata Capital | 11.50% – 29.99% |
| Bajaj Finance | 11.00% – 38.00% |
| Aditya Birla Finance / Aditya Birla Capital | 13.00% – 28.00% |
| Mahindra Finance | 10.00% – 20.00% |
| Muthoot Finance | 14% – 22% |
| Parimal Finance | 12.99% onwards (lower bound) |
| Shriram Finance | 12% – 13% |
| L&T Finance | 12% onwards |
| Mannapuram Finance | 12% onwards |
| Poonawalla Fincorp | 9.99% onwards |
| SMFG India Credit | Starting at 13% |
| Fibe (formerly EarlySalary) | 16% onwards |
| Moneyview | 10.00% onwards |
| PaySense | 16.00% – 36.00% |
| IIFL Finance | 12.75% – 44.00% |
Factors That Affect NBFC Loan Interest Rates
Credit Score
A score above 750 generally gets you the lowest rates. Lower scores can push rates significantly higher.
Income Level & Stability
Salaried individuals with stable monthly income often enjoy better rates compared to self-employed borrowers with fluctuating cash flow.
Employment Type & Employer Profile
Employees in reputed organizations or government jobs are usually offered lower rates due to perceived repayment stability.
Loan Amount & Tenure
Larger loans with shorter tenures may attract lower rates. Smaller, short-term loans frequently come with higher rates.
NBFC’s Risk & Policies
Different NBFCs have different pricing models. Some focus on salaried professionals, while others specialize in high-risk or underbanked borrowers.
Also Read: Best Loan Apps in India with Low Interest for Salaried Person
Why Choose an NBFC Over a Bank?
- Faster Approval & Disbursal – Many NBFCs disburse loans within 24–48 hours.
- Flexible Eligibility – Borrowers with lower credit scores may still qualify.
- Minimal Documentation – Fully digital application processes are common.
- Customized Offers – NBFCs often personalize rates and repayment plans.
How to Get the Best NBFC Personal Loan Interest Rate
- Improve Your Credit Score: Pay bills on time, clear existing debts, and keep credit utilization low.
- Compare Offers: Don’t settle for the first offer—compare rates across multiple NBFCs.
- Choose the Right Loan Amount & Tenure: Borrow only what you need and keep tenure optimal to avoid high interest outgo.
- Show Income Stability: Salaried employees can present salary slips, while self-employed individuals can provide ITRs and business proofs.
- Leverage Existing Relationship: If you already have an NBFC account or loan, you may negotiate a better rate.
Also Read: Instant Loan without Credit Score
Final Thoughts
NBFC personal loan interest rates in India vary widely depending on your profile, but they open up access to credit for borrowers who may not qualify with traditional banks. While rates can sometimes be higher, the speed, flexibility, and convenience NBFCs provide often make them worth considering.
If you’re planning to take a personal loan, weigh not just the interest rate, but also the processing fees, prepayment charges, and overall flexibility before making a decision.
With the right approach, an NBFC personal loan can be a smart, quick, and effective financial solution.
