Which lender saves you more money? Live EMI and total interest comparison with rate inputs for your CIBIL score.
| Factor | Bank | NBFC |
|---|---|---|
| Interest Rate (Personal Loan) | 10–14% p.a. (CIBIL >750) | 14–26% p.a. (more flexible) |
| Interest Rate (Home Loan) | 8.5–9.5% p.a. | 9.5–12% p.a. |
| Approval Speed | 3–10 working days | 24hr–3 days |
| CIBIL Requirement | 750+ for best rates | As low as 650 considered |
| Documentation | Stricter (Form 16, ITR, bank stmts) | More flexible |
| Prepayment Penalty | Nil on floating (RBI rule) | 0.5–2% on floating |
| Regulation | RBI (stricter) | RBI regulated (some flexibility) |
| Hidden Charges | Lower | Higher (processing, admin) |
The choice between a bank and NBFC depends on your CIBIL score, income type and how urgently you need the funds. Banks are cheaper but stricter. NBFCs are faster and more inclusive but typically charge 3–8% higher rates.
Typically 3–8% p.a. for the same borrower profile. A bank may offer 11% for CIBIL 750; an NBFC may charge 16–18% for CIBIL 680. On a ₹5L loan for 3 years, this difference in total interest is ₹45,000–₹60,000.
Yes. Most NBFCs consider applications from CIBIL 650–699 if income is stable. Interest rates will be higher (18–24%). Some NBFCs like Bajaj Finserv, Tata Capital, HDFC Credila specifically serve this segment.
Tax, RBI rate changes — straight to inbox.