Finance

Personal Loans And Top up Facilities By NBFCs In India

Personal-Loans-and-Top-up-Facilities-by-NBFCs-in- India

Non-Banking Finance Corporations (NBFCs) are one of the mediums from which the individuals can avail the instant cash loan benefits in India. However, there are several public and private sector banking institutions that offer the same but NBFCs act more flexibly. An instant loan gives you anywhere between Rs. 10,000 and Rs. 75,000 for tenure of up to a year. You can get the loan amount in your bank account in 2 hours to 24 hours. This type of borrowing facility is usually available with microfinance companies and Fin-tech firms. Visit this website to check various offers from NBFCs and Fin-tech firms. Here you can compare, choose and instantly apply for all you personal loan and cash loan requirement.

However, NBFCs also offer such funding options, but dubbed in the form of a personal loan. This is a traditional loan with a higher loan amount. This starts from Rs. 1 lakh and can go up to Rs. 25 lakhs and more. Compared to instant cash loans, the personal comes with longer tenure starting at 1 year to 5 years or more.

Below enlisted are the personal loans offered by NBFCs in India:

  • Bajaj Finserv –

Bajaj Finserv is an affiliated NBFC that offers the customers with a variety of personal loan schemes to manage their finances. The procedures they follow are hassle-free and your desired loan amount will be disbursed within 3 days. 

  • Maximum loan amount available is Rs.25 Lakhs with a flexible tenure of 2-5 years. 
  • Pre-approved personal loan offers can be easily availed by Bajaj Finserv’s existing customers. 
  • The personal loan can be availed for covering travel, wedding, and house remodelling expenses.   
  • Mahindra & Mahindra Financial Services Ltd. –

Mahindra Finance is a renowned non-banking finance corporation in India that looks after providing the customers of the rural sector with personal loans. The company offers a wide range of financial products such as different varieties of loans, insurance, mutual funds, fixed deposits and more. There are two types of personal loans offered by Mahindra Finance – gold loans and personal loans. 

  • The maximum of Rs.3 lakhs is availed as a personal loan.
  • 36 months is the maximum tenure for the personal loans. 
  • The loan can be repaid using EMIs, ECS, mobile transfer, cash payment or cheque. 
  • Shriram City Union Finance –

Shriram City Union Finance is an established non-banking finance corporation that offers a variety of financial products like personal loans at competitive interest rates and flexible tenures. Both its existing and old customers along with the individuals working for other organizations under its brand can avail the benefits of personal loan. 

Those who are aged between 18 to 59 years and are either salaried or self-employed can apply for the personal loan from Shriram City Union Finance. The loan tenure will depend on the availed loan amount and the loan scheme. However, it will range from 1 year to 3 years. On the other hand, the interest rate calculated will depend on the loan amount, the loan scheme, firm’s liquidity requirements and its market conditions.  

  • Tata Capital –

Tata Capital is India’s one of the largest and a trusted non-banking finance corporation offering specialized financial products to its customers. For starters, the firm provides a variety of personal loan schemes, step up flexi EMI loans, wedding loans, bullet flexi EMI loan and step down flexi EMI loans. You can avail its personal loan benefits for managing your finances. Benefits of availing personal loans by Tata Capital; 

  • Rs. 15 lakhs is the maximum loan amount one can avail. 
  • You can repay the loan as per your convenience like via cash payments, EMIs, ECS, cheques and more. 
  • The maximum tenure is 6 years. This is flexible enough tenure to repay the loan. 
  • The borrower availing the personal loan can use it for different purposes like house remodelling, education funding, travelling expenses, and more.

Personal Loan with Top up Facility by NBFCs

Top up Loan is just like any financial product offered by NBFCs, which you can avail for fulfilling yours and your family’s different needs. It basically offers financial aid which you can use for different purposes. For a better understanding of what top-up loan actually is, consider this example. 

  • Suppose that you availed Rs.2 lakhs for the tenure of 1 year from a respective bank.
  • But within 6 months you could have used up all the funds, and need more of the principal amount.
  • In such a case, you can contact the NBFC for a top-up personal loan and avail additional funds over the rest of the tenure.

It works similarly to our mobile balance. If your mobile balance is low, then you immediately contact our network operator and do the top-up of the balance. Just like it, a top-up loan will be provided to you over your current balance.

Top Up Loan Features –

  • Eligibility Criteria: Before providing the top-up loan, the financial institutions consider several factors like your loan repayment capacity, credit score, past track records in case of a previously held loan like a home loan. Thus, a top-up loan is not made available for everyone. Your credit report plays a vital role in loan sanctioning. If everything goes well, you will be sanctioned with the top-up loan followed by the charging a processing fee.
  • Loan Tenure: The holding period of loan varies from bank to bank. Usually, the tenure is the same as the outstanding period of the existing personal loan.
  • The rate of Interest: The interest rates are generally higher in comparison to the home loans. It can be 1.75% to 2.5% higher than the interest rates charged on existing loans.
  • Utilization: Top-up loans prove to be very handy in case as you can use the funds as per need. Other than that, you can also avail it for funding your children’s school or college fee. But, you are forbidden from using the top-up loan for speculative purposes.
  • Tax benefits: The tax benefits will depend on the purpose of why you availed the top-up loan. That is, under the ITR Act, Section 80 C, you will not get the tax benefits for availing top-up loans if you are using it for house remodeling purposes. But, you will get the interest payment benefits under Section 24.  On the other hand, if you use the top-up loan for constructing or purchasing a new house, then you will get tax benefits under Section 24. It is recommended that you only take a top-up loan if you are in urgent need of funding.

To Conclude

An NBFC personal loan comes with many benefits. The terms and conditions are more flexible than that for bank loans. There is also a facility of top-up loans. This comes handy when you require additional funds over your principal borrowed amount.

subscriber
I am freelancer Content Writer & Financial Advisor @ Loanbaba.com

Leave a Reply

Your email address will not be published.