An NBFC (Non-Banking Financial Company) is a financial institution that lends money without being a bank. Many NBFCs offer personal loans online, so you can apply, complete verification and receive the money without visiting a branch.
Most NBFC personal loans are unsecured, so you don’t need to pledge collateral. This guide covers what they cost, who is eligible, the documents you need and what to check before you borrow.
What Is an NBFC?
An NBFC is a company that provides loans, advances and certain investment services. NBFCs must be registered with the Reserve Bank of India (RBI), which regulates them.
NBFCs are not banks. They can’t accept demand deposits the way banks do, and they can’t issue cheques drawn on themselves. Many use technology to assess applications, verify documents and disburse loans digitally.
How Fibe Works
Fibe is the brand name of Social Worth Technologies Limited and its material subsidiary, EarlySalary Services Private Limited (ESPL), an RBI-registered NBFC. Personal loans through Fibe are given by ESPL, either on its own books or jointly with its co-lending partners. Your Key Fact Statement and loan agreement name the lender for your loan.
Benefits of an NBFC Personal Loan
Digital application with minimal paperwork
You can usually apply, complete KYC, upload documents, sign your loan agreement and receive the money in your bank account entirely online. Most applications need only basic KYC, income and bank details.
Flexible tenure
You can choose a repayment period that suits your budget. A longer tenure lowers your EMI but increases the total interest you pay. A shorter tenure raises your EMI but reduces your total cost. Fibe offers tenures of up to 36 months.
Assessment beyond your credit score
Many NBFCs look at more than your credit score, including your income, employment, repayment capacity and banking history. Fibe’s underwriting considers your credit bureau data alongside a wide range of other information. Every application is still subject to the lender’s credit policy.
Clear costs before you sign
RBI rules require lenders to give you a Key Fact Statement (KFS) before you sign. It sets out the interest rate, APR, all fees and the total amount you’ll repay, so you can compare offers on their full cost.
NBFC Personal Loan Interest Rates and Charges
Your interest rate depends on your credit profile, income, employment, existing debts, loan amount, tenure and the lender’s policies. Fibe personal loan interest rates start at 18% p.a. on a reducing-balance basis, subject to eligibility and your approved offer.
Look at the full cost, not just the rate. Check:
- Processing fee, and whether GST is charged on top
- Late payment and penal charges on overdue amounts
- EMI or mandate bounce charges
- Stamp duty and other applicable taxes
- Prepayment and foreclosure charges
Fibe charges nothing for part-prepayment or foreclosure, and you can do either at any time.
All charges must be listed in your Key Fact Statement. Read it before you accept the loan.
NBFC Personal Loan Eligibility
Each lender sets its own criteria. Most look at:
- Age: You must fall within the lender’s age range.
- Income: You need a regular income that covers the EMI alongside your existing commitments.
- Employment: Some lenders serve salaried applicants, some self-employed, some both. Your job stability may also count.
- Credit profile: A strong score can get you better terms, but there’s no single CIBIL cut-off for all NBFCs.
- Repayment capacity: Lenders check your income against your existing EMIs and obligations.
See Fibe’s eligibility criteria.
Documents Required for an NBFC Personal Loan
- Identity proof: Aadhaar, PAN, passport or driving licence
- Address proof: Aadhaar, passport, a utility bill or another accepted document
- Income proof: Recent salary slips and bank statements if you’re salaried; income or business documents if you’re self-employed
- Bank details: The account where the loan will be disbursed
- Photo or selfie: For digital identity verification
See Fibe’s list of documents required.
How to Apply for an NBFC Personal Loan Online
- Compare lenders on interest rate, fees, tenure and foreclosure terms.
- Check your eligibility before you submit a formal application.
- Choose your amount and tenure. Borrow what you need, not the maximum on offer, and pick an EMI you can comfortably pay.
- Fill in the application on the lender’s official app or website, with accurate details.
- Complete KYC and upload your documents.
- Review your offer and Key Fact Statement: the amount, rate, EMI, tenure and all charges.
- Sign the loan agreement. Once final checks are done, the money is sent to your bank account.
How to Check That a Lender Is RBI-Registered
- Check the RBI’s list of registered NBFCs and match the company name exactly.
- For loan apps, find the regulated lender behind the app. RBI rules require the app to name the bank or NBFC that’s lending.
- Make sure the money comes straight from the lender into your bank account.
- Repay only through official channels. Fibe repayments are made only through the Fibe app or a payment link sent by Fibe.
Before You Borrow
- Borrow only what you need.
- Make sure the EMI fits your monthly budget.
- Compare the total cost, not just the interest rate.
- Read the Key Fact Statement in full.
- Check late payment, bounce and foreclosure terms.
- Don’t apply to several lenders at the same time.
Conclusion
An NBFC personal loan gives you quick, digital access to funds. Your approved amount, rate and tenure depend on your profile and the lender’s credit policy, so compare the full cost before you accept an offer.
With Fibe, you can apply for a personal loan of up to ₹10 lakh on the app or website. Tenures go up to 36 months, and you can part-prepay or foreclose at any time with no charges.
FAQs on NBFC Personal Loans in India
1. Who is eligible for an NBFC personal loan?
Each NBFC sets its own criteria. Most look at your age, residency, income, employment, credit history, existing debts and repayment capacity. Check the lender’s requirements before you apply.
2. Can NBFCs give personal loans?
Yes. RBI-registered NBFCs can offer unsecured personal loans, which you can use for most personal needs, subject to the loan terms.
3. How much can I borrow from an NBFC?
It depends on your income, repayment capacity, credit profile and the lender’s policies. With Fibe, you can borrow up to ₹10 lakh, subject to approval.
4. How do I improve my chances of approval?
Meet the lender’s criteria, give accurate information, submit the documents requested, keep a good repayment record, keep your existing debts manageable and apply for an amount your income supports. Approval is never guaranteed.
5. Can I apply for an NBFC loan without visiting a branch?
Yes. Many NBFCs, including Fibe, let you complete the entire process online, from application and KYC to signing the agreement.
6. What is the difference between a bank loan and an NBFC loan?
Banks can accept demand deposits and offer a wider range of banking and payment services. NBFCs focus on lending and investments, and can’t accept demand deposits. For personal loans, both set eligibility, rates and terms under their own credit policies, so compare the actual offers.
7. Can I get an NBFC personal loan with a low CIBIL score?
Possibly. Many NBFCs also consider your income, job stability, banking history and repayment capacity. A lower score can still affect your eligibility, loan amount or terms, and the final decision rests with the lender.
8. What happens if I miss an EMI?
You may be charged late payment, bounce or penal charges under your loan terms, and the missed payment can be reported to credit bureaus, lowering your score. If dues stay unpaid, the lender may start collection under RBI rules and your loan agreement. If you expect to miss a payment, contact your lender early. Fibe repayments are made only through the Fibe app or a payment link sent by Fibe.