When Banks Say No: NBFC Personal Loans for Unique Financial Situations

Personal loans have become an integral part of our financial journey. They come to our rescue when we need quick funds for various purposes such as medical emergencies, wedding expenses, home renovations, and much more. However, the traditional route to obtain a personal loan via banks isn’t always accessible to everyone. That’s where Non-Banking Financial Companies (NBFCs) step in to bridge the gap.

In this blog post, you’ll discover how NBFCs offer personal loans for unique financial situations.

Understanding NBFCs and Their Role in Personal Loans

Non-Banking Financial Companies, or NBFCs, are financial institutions that provide a wide range of financial services, including personal loans. Unlike traditional banks, NBFCs operate more flexibly and are often more willing to cater to individuals with unique financial needs. Let’s delve into some situations where banks may say no, but NBFCs can offer a helping hand.

        1. Low Credit Score

Banks typically require a high credit score for personal loan approval. The bank may reject your loan application if your credit score is lower than the required figure. However, NBFCs understand that not everyone has a perfect credit history. They are more lenient and may consider other factors, i.e., your income and repayment capacity. To secure a personal loan with a low credit score, consider approaching an NBFC.

       2. Self-Employed Individuals

Self-employed individuals often face challenges when seeking personal loans from banks. Banks usually prefer lending to salaried individuals with a stable income source. NBFCs, on the other hand, are more open to working with self-employed individuals. They assess your business income and financial stability to determine loan eligibility.

      3. Quick Funds in Emergency Situations

When you need funds urgently, waiting for the lengthy approval process of a bank loan isn’t feasible. At this point, NBFCs shine. They offer instant personal loans that can be approved and disbursed rapidly, helping you address emergency financial needs.

     4. Non-Traditional Income Sources

If your income comes from non-traditional sources like freelancing, rental income, or commission-based work, the banks may hesitate to approve your personal loan application. NBFCs, on the other hand, consider various income sources and assess your ability to repay the loan based on your financial situation.

Calculating EMI for a Personal Loan

Now that you know how NBFCs can assist you in obtaining a personal loan in different financial situations, let’s discuss how to calculate EMI for personal loan. Knowing your EMI helps you plan your finances effectively and ensures timely repayments.

To calculate EMI for personal loan, use an EMI calculator often provided by most NBFCs on their websites. Here’s a simple formula to understand how it works.

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]


  • Pstands for the principal loan amount.
  • Ris the monthly interest rate (annual interest rate divided by 12 and expressed as a decimal).
  • Nrepresents the loan tenure in months.

Let’s illustrate this with an example: Suppose you want to take an instant personal loan of ₹1,00,000 from an NBFC at an annual interest rate of 12% for a tenure of 24 months (2 years). Using the formula:

P = ₹1,00,000 R = 12% per annum / 12 months = 1% per month or 0.01 N = 24 months

Now, plug these values into the formula:

EMI = [1,00,000 x 0.01 x (1+0.01)^24] / [(1+0.01)^24-1]

Calculating this, you’ll find that your EMI for this loan would be approximately ₹4,888.41.

Using an EMI calculator available online is the quickest and most accurate way to determine your monthly repayments. It helps you budget your finances accordingly.

Securing an Instant Personal Loan

In recent years, instant personal loans have gained popularity due to their swift approval process. To secure one, follow these steps:

  1. Choose the Right NBFC: Research and select a reputable NBFC that offers instant personal loans in India. Check their eligibility criteria and terms.
  2. Online Application: Fill out the loan application form online. You’ll need to provide your personal and financial information.
  3. Document Verification: Upload the required documents, which typically include proof of identity, address, income, and bank statements.
  4. Loan Approval: Once your documents are verified, the NBFC will assess your eligibility. If approved, you’ll receive an instant personal loan.
  5. Accept the Offer: Review the loan terms, interest rate, and EMI. If you’re satisfied, accept the offer digitally.
  6. Disbursement: After acceptance, the loan amount will be disbursed directly to your bank account, often within minutes or hours.
  7. Repayment: Ensure timely payment of EMIs to maintain a good credit history and secure future financial transactions.


When banks say no to personal loans, NBFCs come to the rescue. They offer quick approval and flexibility, enabling people from diverse economic backgrounds to easily obtain personal loans. It’s important to utilize online tools to calculate EMI for personal loans. This allows you to manage your repayments effectively. Furthermore, instant personal loans from NBFCs can be a lifesaver in urgent situations. So, explore your options, choose the right NBFC, and take control of your financial journey today.

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