A personal loan of 5 lakh has quietly become the most searched loan amount among salaried Indians. This amount is too large for a credit card. But it is also too small to justify the paperwork that banks demand. Lenders offer these loans with no restriction in end usage of funds. Some of the main uses for the loan include wedding expenses, home renovation, debt consolidation, etc.
Traditional banks usually approve applications of individuals with a strong credit history. Most first-time borrowers do not qualify in such cases. Some of the top NBFCs for a 5 Lakh personal loan, with easy and instant approval process, are as follows:
1. Finnable
Finnable is an RBI-licensed NBFC offering personal loans. It is based in Bengaluru. The lender offers online loans with zero physical paperwork. Interest rates start from 16% p.a., using the reduced balance method. Loan amounts go from ₹50,000 up to ₹10 lakhs. Applicants can select a tenure between 6 and 60 months.
The lender prefers a CIBIL score of 675 or above. But first-time borrowers can also apply for the loan. Finnable considers other factors like income stability, employment profile, etc. If you have no credit history, but your income and employer profile is strong, you still have a chance to apply.
2. Bajaj Finserv
It is one of the largest NBFCs in the country. It offers flexi-loan options where a borrower can draw the needed amount from a sanctioned limit. The lender calculates interest only on the borrowed amount and not the sanctioned amount.
Bajaj Finserv offers interest rates starting from 11% p.a. Borrowers can use a personal loan to cover expenses related to education, travel, wedding, etc. Existing Bajaj Finserv customers with pre-approved offers may get faster disbursal timelines. Applicants with no or low credit history may face loan rejection. If the lender approves their loan, it would typically be at higher interest rates.
3. Tata Capital
Tata Capital offers personal loans at 10.99% p.a. onwards. Salaried applicants, with a good credit history, can apply for the loan. They can apply through the digital application process, with no need for branch visits.
The lender can sanction loan amounts higher than ₹5 lakhs. But the actual number depends on factors like income stability, employer profile, etc. Existing customers can get higher amounts provided they fulfil the eligibility criteria.
4. Poonawalla Fincorp
Poonawalla Fincorp offers personal loans of up to ₹50 Lakhs. The interest rate for the loan starts at 9.99% p.a. Salaried professionals with clean repayment records and steady jobs have higher chances of loan approval. The entire process, from application to loan disbursal, is completely online.
5. Aditya Birla Capital
The lender offers personal loans for amounts higher than ₹5 Lakhs. The rates here start at 10.99% p.a. But the final rate offered by the lender depends on the applicant’s credit profile. Applicants with stronger profiles can get higher amounts and better loan terms. Existing Aditya Birla Group customers may be eligible for better loan offers provided they fulfil the lenders’ eligibility criteria.
6. L&T Finance
L&T Finance offers personal loans with tenures of up to 72 months. That’s the longest repayment tenure on this list. The Interest rate for the loan starts from 10.50% p.a. The loan size can go up to ₹30 lakhs. The lender also offers quicker loan disbursal for digitally verified profiles. Borrowers can opt for longer tenures to repay the loan to reduce their EMIs. But the total borrowing costs will increase significantly in such cases.
7. IIFL Finance
Salaried individuals can avail of personal loans of up to 5 lakh from IIFL. The lender offers flexible repayment tenures of up to 42 months for the loan. Applicants can use this loan to meet financial needs like education, debt consolidation, medical emergency, etc.
8. Fibe
Fibe, formerly EarlySalary, built its name on speed at the smaller end of the ticket size spectrum. The lender offers quicker loan approvals via its app. The lender offers rates of 18% p.a. onwards for 36 months. It also relies on the applicant’s bank transaction patterns and repayment history to assess the credit profile. The loan works for younger, first-time applicants who haven’t built their credit history yet.
9. MoneyView
MoneyView offers personal loans of up to 10 lakh at 14% p.a. onwards. Applicants with good credit profiles are likely to get same-day loan disbursal. The entire loan process is completely paperless. The repayment window is up to 60 months. This gives a breathing room for borrowers for loan repayment as compared to most other fintech apps.
10. KreditBee
With loan amounts of up to ₹10 lakhs, Kreditbee can help loan applicants take care of their financing needs. But the lender may offer smaller loan amounts for first-time borrowers with no credit history. The final amount offered depends on the applicant’s income profile and repayment history. Existing users with a clean repayment history may get faster loan disbursal. But newer applicants should budget more time for lender verification of their profile.
Comparing NBFCs Before Applying for a Personal Loan
The interest rate is only part of the equation. Lenders charge processing fee on the loan as well. It can go up to 5% plus GST. Some lenders may also charge prepayment fee which will also add to the borrowing costs. This can shift the real cost of a 5 lakh personal loan upwards significantly.
A free, soft CIBIL check before applying costs nothing. It prevents applicants from applying to lenders who have a higher CIBIL score threshold. Each rejection leaves a hard inquiry behind. Multiple hard inquiries in short durations can reduce the applicant’s credit score.
Salaried professionals with low credit history can apply with digital lenders who focus on other aspects like income and employer profile. They consider the applicant’s income stability and banking behaviour alongside their credit history. This has opened the formal borrowing sector to customers who may not be eligible for loans from traditional lenders. Loan applicants should check these factors before applying for a personal loan, not which app can approve their loan faster.
