Top 10 NBFCs for Personal Loan in India

What are NBFCs?

Non-Banking Financial Companies (NBFCs) are financial institutions that provide services like loans, fixed deposits, asset financing, and investment products without holding a full banking licence. Unlike banks, NBFCs cannot accept demand deposits such as savings or current accounts, but they play a major role in improving access to credit across India. Many borrowers prefer NBFCs because they offer faster approvals, flexible eligibility criteria, and digital loan processes. Several companies listed among India’s Top 10 NBFCs are known for offering customer-friendly financial solutions for individuals and businesses. You can use Urban Money to compare and apply for a personal loan across leading NBFCs and banks.

What is the Difference Between NBFC and Banks?

NBFCs and banks both provide financial services like loans and investments, but they operate differently. Banks are more regulated and can accept deposits in savings and current accounts, while NBFCs mainly focus on lending and other financial products.

The table below highlights the key differences between NBFCs and banks in India.

Basis	NBFCs	Banks
Full Form	Non-Banking Financial Company	Banking Institution
Regulation	Regulated by RBI	Regulated by the RBI under the Banking Regulation Act
Deposit Facility	Cannot accept savings/current deposits	Can accept savings and current deposits
Loan Approval	Faster and flexible	More strict and time-consuming
Interest Rates	Usually higher	Usually lower
Eligibility Criteria	Flexible	Strict
Services Offered	Loans, investments, asset finance	Full banking and financial services
Credit Access	Easier for low-credit-score borrowers	Preferred for high-credit-score borrowers
Digital Process	Quick and digital-first	Improving but comparatively slower
Best For	Fast loans and flexible financing	Low-cost and secure banking services

Top 10 NBFCs in India For Personal Loan 2026

Personal loans from NBFCs have become increasingly popular in India due to their rapid approvals, flexible eligibility criteria, and digital-first application processes. Many borrowers prefer NBFCs over traditional banks because they offer quick disbursal with minimal paperwork, making them ideal for urgent financial needs. Compare the latest rates across lenders on the personal loan interest rate page before finalising your application.

From instant digital loans to customised financing solutions, these top 10 non-banking finance companies in India offer reliable personal loan options for diverse financial needs and credit profiles.

1. Bajaj Finance Limited

Bajaj Finance is one of the most trusted names among India’s Top 10 NBFCs. Known for its strong digital platform and quick approvals, the company offers a wide range of personal finance products across India.

Loan Offerings

• Personal loans
• Instant consumer loans
• EMI cards
• Business and lifestyle financing

Interest Rates

• Starting from around 10% p.a. onwards
• Rates vary based on credit score and eligibility

USP

• Fast digital approval and disbursal
• Minimal documentation process
• Pre-approved offers for existing customers

2. Tata Capital

Tata Capital is a leading financial services company offering reliable and flexible loan solutions. It is widely recognised as one of the top 10 non-banking finance companies in India for its customer-focused services.

Loan Offerings

• Personal loans
• Home loans
• Business loans
• Loan against property

Interest Rates

• Starting from approximately 10.99% p.a.

USP

• Trusted Tata brand reputation
• Flexible repayment tenures
• Easy online application process

3. Aditya Birla Finance

Aditya Birla Finance provides NBFC personal loans with competitive interest rates and quick processing. The company focuses on salaried and self-employed borrowers.

Loan Offerings

• Personal loans
• SME financing
• Loan against securities
• Business loans

Interest Rates

• Starting from around 11% p.a.

USP

• Customised loan solutions
• Strong customer support
• Flexible EMI options

4. Shriram Finance

Shriram Finance is one of India’s largest NBFCs with a strong presence in retail financing and personal lending. It is popular among customers in urban and rural markets.

Loan Offerings

• Personal loans
• Vehicle loans
• Gold loans
• SME loans

Interest Rates

• Starting from approximately 12% p.a.

USP

• Wide customer reach
• Flexible eligibility criteria
• Strong presence in semi-urban and rural India

5. Muthoot Finance

Muthoot Finance is widely known for gold loans but also offers personal financing solutions. The company has a large branch network across India.

Loan Offerings

• Personal loans
• Gold loans
• Business loans
• Money transfer services

Interest Rates

• Starting from around 11% p.a.

USP

• Fast loan disbursal
• Extensive branch accessibility
• Simple documentation process

6. HDB Financial Services

Backed by HDFC Bank, HDB Financial Services is a reputable NBFC offering a range of loan products with attractive features.

Loan Offerings

• Personal loans
• Consumer durable loans
• Gold loans
• Business financing

Interest Rates

• Starting from approximately 10.5% p.a.

USP

• Backed by a leading banking group
• Quick approval process
• Flexible loan amounts

7. Mahindra Finance

Mahindra Finance is a well-known NBFC focused on rural and semi-urban lending. It offers accessible loan options for a wide range of customers.

Loan Offerings

• Personal loans
• Vehicle financing
• SME loans
• Fixed deposits

Interest Rates

• Starting from around 11.9% p.a.

USP

• Strong rural presence
• Easy loan accessibility
• Customer-friendly repayment options

8. L&T Finance

L&T Finance is a reputed NBFC offering digital and customer-centric financial services. It is known for transparent loan processes and competitive rates.

Loan Offerings

• Personal loans
• Farm equipment loans
• Home loans
• Two-wheeler financing

Interest Rates

• Starting from approximately 11% p.a.

USP

• Transparent loan policies
• Strong digital experience
• Trusted corporate backing

9. Cholamandalam Investment and Finance Company

As part of the Murugappa Group, Cholamandalam Finance offers reliable lending solutions to a strong customer base across India.

Loan Offerings

• Personal loans
• Vehicle loans
• SME loans
• Home equity loans

Interest Rates

• Starting from around 11.5% p.a.

USP

• Strong financial stability
• Wide distribution network
• Flexible loan structures

10. Kissht

Kissht is a digital-first NBFC platform known for instant personal loans and quick access to credit through mobile applications.

Loan Offerings

• Instant personal loans
• Consumer durable financing
• EMI financing

Interest Rates

• Starting from approximately 14% p.a.

USP

• Instant digital approvals
• Minimal paperwork
• Ideal for short-term financing needs

NBFC vs Bank Which is Better?

Both NBFCs and banks have their own advantages depending on the borrower’s needs.

• Banks usually offer lower personal loan interest rates, lower processing fees, and higher security, making them ideal for customers with strong credit scores and stable income.
• NBFCs, on the other hand, are known for faster approvals, flexible eligibility criteria, and easy digital loan processes, especially for people with limited credit history or urgent financial needs.

While banks are better for affordability and long-term borrowing, NBFCs are often preferred for convenience and quick access to funds. The right choice depends on your financial profile and loan requirements. Use the Personal Loan EMI Calculator to compare your monthly repayment obligations across different lenders and tenures before deciding.

RBI Regulations for NBFCs

The Reserve Bank of India (RBI) regulates all NBFCs under the RBI Act, 1934, through a Scale-Based Regulatory (SBR) framework designed to ensure financial stability and consumer protection. The framework classifies institutions into four layers: Base, Middle, Upper, and Top based on their size, asset value, and systemic importance. This regulatory structure plays a major role in shaping the operations of the Top 10 NBFCs in India and maintaining trust in the lending ecosystem.

To operate legally, NBFCs must maintain a minimum Net Owned Fund (NOF) of ₹10 crore and comply with capital adequacy norms prescribed by the RBI. Larger NBFCs are also required to follow stricter liquidity management and risk assessment guidelines.

These rules ensure that the top 10 non-banking finance companies in India remain financially sound while continuing to provide credit across sectors such as personal loans, vehicle financing, MSME lending, and housing finance. With Urban Money, you can use the Personal Loan Eligibility Calculator to assess your profile with more clarity.

The RBI also mandates that all NBFCs follow a Fair Practices Code (FPC), which promotes transparency in loan processing, interest rates, repayment terms, and recovery procedures. Additionally, only authorised deposit-taking NBFCs are permitted to accept public deposits and are subject to tighter compliance and liquidity requirements. Such regulations strengthen customer confidence and improve accountability across India’s NBFC sector.

How to Choose the Best NBFC?

It is crucial to select the right NBFC when comparing the top 10 NBFCs in India for loans. Since every borrower has different financial needs, it is essential to evaluate factors like safety, interest rates, customer service, and digital convenience before making a decision. The top 10 non-banking finance companies in India are usually known for strong financial stability, RBI compliance, and customer-friendly services.

Here are some key points to consider while choosing the best NBFC:

1. Check RBI Registration and Credibility
   • Always choose an NBFC registered with the Reserve Bank of India (RBI).
   • Verify the company’s reputation, market presence, and years of operation.
   • Established NBFCs generally offer greater reliability and transparency.
2. Compare Interest Rates and Charges
   • Review interest rates, processing fees, and hidden charges before applying.
   • Compare multiple lenders on the personal loan interest rate page for a clear understanding.
   • Look at the Annual Percentage Rate (APR) to understand the actual borrowing cost.
3. Evaluate Credit Ratings
   • Prefer NBFCs with high credit ratings such as CRISIL AAA or ICRA AAA.
   • High-rated companies are considered financially stable and safer for deposits or investments.
4. Look for Fast and Digital Services
   • Many of the Top 10 NBFCs in India provide digital-first loan applications and quick approvals.
   • Choose NBFCs with easy documentation, fast disbursal, and user-friendly mobile apps or websites.
5. Choose Based on Your Financial Needs
   • For home loans, consider specialised housing finance companies (HFCs).
   • For business loans, select NBFCs with flexible repayment options.
   • For fixed deposits, compare FD interest rates and payout flexibility.
6. Check Customer Reviews and Support
   • Read customer reviews to understand service quality and issue resolution.
   • Good customer support is important for smooth loan management and quick assistance.
7. Assess Flexibility and Repayment Terms
   • Look for repayment schedules that suit your income and cash flow.
   • Check prepayment policies, foreclosure charges, and EMI flexibility. Use the Personal Loan Prepayment Calculator to estimate savings from early repayment before finalising.

By carefully comparing these factors, borrowers and investors can confidently choose from the top 10 non-banking finance companies in India and find an NBFC that aligns with their financial goals. If you’re already servicing a personal loan at a higher rate, the Personal Loan Balance Transfer Calculator can help evaluate whether switching to a better-priced NBFC makes financial sense.

Risks & Benefits

NBFCs play an important role in improving financial access in India by offering quick loans, flexible eligibility criteria, and faster digital approvals compared to traditional banks. They are especially helpful for individuals and small businesses with limited credit history or urgent funding needs. Many of the Top 10 NBFCs in India provide innovative financial products, streamlined documentation, and customer-friendly services. However, NBFCs also carry certain risks, including higher interest rates, higher processing fees, and stricter penalties for late payments. Borrowers should carefully compare terms, check RBI registration, and evaluate the credibility of the top 10 non-banking finance companies in India before applying.