Personal loan interest rate in India
With a Bajaj Finserv Personal Loan, you can get up to Rs. 25 lakh at an attractive interest rate. The loan comes with no hidden charges, 100% transparency and an affordable personal loan interest rate in India, making your overall borrowing experience seamless.
Types of fees |
Charges applicable |
Interest rate |
10% onwards |
Processing fees |
Up to 3.93% of the loan amount (inclusive of applicable taxes) |
Penal interest |
Delay in payment of monthly instalment shall attract penal interest at the rate of 3% per month on the monthly instalment outstanding, from the respective due date until the date of receipt. |
Part-prepayment charges** |
4.72% (inclusive of applicable taxes) |
Bounce charges |
Rs. 700 - Rs. 1,200 per bounce (inclusive of applicable taxes) |
| Stamp duty | Payable as per state laws and deducted upfront from loan amount |
| Mandate rejection charges |
Rs. 450/- (Inclusive of applicable taxes) per month from the first month of due date for mandate rejected by customer’s bank until the new mandate is registered |
| Flexi fee | Term Loan – Not applicable Flexi variant (as applicable below) Rs. 1999 (inclusive of applicable taxes) for loan amount is < 2 Lacs Rs. 3999 (inclusive of applicable taxes) for loan amount >= Rs. 2 Lacs and < Rs. 4 Lacs Rs. 5999 (inclusive of applicable taxes) for the loan amount is >= Rs. 4 Lacs and < Rs. 6 Lacs Rs. 6999 (inclusive of applicable taxes) for the loan amount is >= Rs. 6 Lacs and < Rs. 10 Lacs Rs. 7999 (inclusive of applicable taxes) for the loan amount is >= Rs. 10 Lacs Will be deducted upfront from the loan amount |
*Flexi fee is not applicable for PLCS & RPL
“Terms and conditions apply”
Annual/ additional maintenance charges
Loan variant |
Charges |
Term loan |
Not applicable |
Flexi term loan (Flexi dropline) |
0.295% (inclusive of applicable taxes) on the total withdrawable amount (as per the repayment schedule) on the date of levy of such charges. |
Flexi Hybrid loan |
0.295% (inclusive of applicable taxes) on the total withdrawable amount during initial tenor. 0.295% (inclusive of applicable taxes) on total withdrawable amount during subsequent tenor. |
*These charges will be levied annually.
Personal loan foreclosure charges
Loan variant |
Charges |
Term loan |
4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment. |
Flexi term loan (Flexi dropline) |
4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment. |
Flexi Hybrid loan |
4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment. |
*Foreclosure can be done after the deduction of 1st EMI.
Mandate rejection service charge: Rs. 450 (inclusive of applicable taxes)
Charges will be levied if the new mandate form is not registered within 30 days from the date of rejection of the previous mandate form by the customer’s bank for any reasons whatsoever.
Additional cess will be applicable on all charges for all products in accordance with the state-specific laws.
Types of personal loan interest rates
Personal loans come with two types of rates of interest: Fixed interest rate and floating interest rate.
1. Fixed interest rate
As the name suggests, the interest rate remains the same throughout the loan tenor. Thus, the loan EMIs will also remain constant.
2. Floating interest rate
A floating, adjustable, or variable interest rate is linked to an internal benchmark of a financial institution. Changes to this benchmark will affect the rates. Hence, floating rates vary throughout the loan tenor.
Both of these rates have advantages and disadvantages. Fixed rates keep EMIs constant, which helps in budgeting. On the other hand, floating rates go up or come down along with the internal benchmark rate.
Methods for Interest Calculation on Personal Loan
Personal loan interest rates are calculated in two ways—flat rate and reducing balance interest rate:
1. Flat rate method
In this method, the applicable rate of interest is charged on the entire principal amount throughout the tenor.
2. Reducing balance method
In the diminishing balance or reducing balance method, the applicable rate of interest is chargeable on the outstanding principal after each EMI is paid off. Thus, the interest is calculated every month on the loan balance. Borrowers pay lower interest on the loan compared to the flat rate method.
Interest rate calculation formula
The interest rate for a personal loan through the flat rate method and the reducing balance method is calculated using the following formula:
1. Flat rate method
The rate of interest is chargeable on the entire loan principal.
The formula for this method is –
EMI = (principal + total interest payable) / loan tenor in months
Wherein, total interest payable = P x r x n/100
2. Reducing balance method
The rate of interest is charged on the outstanding principal after the payment of each EMI.
The formula to calculate this is –
EMI = [P x r x (1 + r) ^n] / [(1 + r) ^(n-1)]
Here, 'P' is the loan amount or principal, 'r' is the rate of interest, and 'n' is the loan tenor in months.
Bajaj Finserv offers personal loans of up to Rs. 55 lakh at competitive interest rates starting at 10%. There are no hidden charges, and you are assured of 100% transparency
By securing an affordable interest rate, you can use the Bajaj Finserv Personal Loan to meet your financial goals cost-effectively. When applying for a personal loan, do account for the processing fee of up to 3.93% of the loan amount plus taxes. This is a one-time fee.You can split repayment into a maximum of 60 EMIs as you get a flexible repayment tenor up to 60 months. For ease of planning, use the Personal Loan EMI Calculator.
Prior planning is a must when taking a personal loan as defaults attract fines and penal interest. The EMI bounce charges range from Rs. 700 to Rs. 1,200, and penal interest is charged at the rate of 3.50% to 3.50% per month on the monthly instalment/ EMI outstanding, from the date of default until the receipt of monthly instalment/ EMI.
Part-prepayments help make loan repayment cheaper as they reduce the outstanding principal. However, make sure to judge the benefit of a part-prepayment by accounting for the fee of 4.72% plus taxes on the amount paid. The part-prepayment fee does not apply to the Flexi loan facility.
If you want to pre-close your loan, you will incur a nominal charge of 4.72% plus taxes on the outstanding principal. For a Flexi loan, the foreclosure charge is 4.72% plus taxes and cess on the withdrawable amount.
To view your loan documents and statements, visit the customer portal – My Account. You can download e-statements, letters, certificates and more from My Account.
Frequently asked questions
The processing fee for a Bajaj Finserv Personal Loan may go up to 3.93% of the loan amount plus taxes. This fee depends on the loan amount and factors such as your eligibility.
When it comes to personal loans, there are generally two types of interest rates. These include fixed interest rates and variable interest rates:
- Fixed interest rates: A fixed interest rate remains constant throughout the loan tenure. When borrowers opt for a personal loan with a fixed interest rate, the rate at which they borrow the money remains unchanged over the repayment period.
- Variable interest rate: Unlike fixed interest rates, the interest rate on a personal loan with a variable interest rate can fluctuate based on various factors such as market conditions, economic indicators, or changes in the lending institution's policies. This means that the monthly EMI amount may vary throughout the repayment period.
There are multiple factors that can affect your personal loan interest rate in India. Monthly income, credit score, payback history, debt-to-income ratio, and lender-borrower relationship are all factors to consider. It is recommended to ensure that all of these criteria are in good health in order to avail of the loans at low interest rates and hence lower the cost of borrowing.
When making a part-prepayment, you must account for a fee of 4.72% plus taxes on the part-prepayment amount made. However, part-prepayment fees do not apply to you if you have availed of the Flexi loan facility.
A bounce charge is the penalty incurred when you miss an EMI payment. Bajaj Finserv charges between Rs. 700 - Rs. 1,200 per bounce (inclusive of applicable taxes), for every EMI missed. Also, in case of late payment or EMI(s) default, penal interest will be levied at a rate of 3.50% - 3.50%.
A Bajaj Finance Personal Loan is available to you at a competitive interest rate starting at 10%.
When foreclosing your loan, you must account for the foreclosure charge of 4.72% plus taxes on the outstanding principal if you have taken a term loan. For a Flexi Term loan or a Flexi Hybrid loan, the foreclosure charge is 4.72% plus tax and cess on the total withdrawable amount.
CIBIL score: 685 is the minimum CIBIL score required for a personal loan. High CIBIL scores indicate a clean financial track record and help you secure a lower interest rate. Click here to check your CIBIL score for free.
Occupation: Salaried and self-employed individuals may be offered different interest rates because of the nature of their income. Often, salaried persons are treated as less risky.
Income: Higher-income helps you get a lower interest rate as lenders can be assured of repayment.
Debt-to-income ratio: Keeping this ratio low helps reduce the risk of default as you will have more funds to pay your EMIs. The interest rate may be lower accordingly.
Age: Younger applicants, with many earning years remaining, may receive more affordable rates than those nearing retirement.
Employment: Being employed at a renowned organisation can help you get a better rate as there is more job and income stability.
Association with the lender: Existing customers may get more favourable interest rates.
You can repay your loan over a tenor of up to 96 months. That is, you can space out your EMIs over a maximum of 8 years.
In the flat-rate method you are charged interest on the entire principal throughout the tenor. This works out to be expensive. In the reducing balance method, you are charged interest on the outstanding principal. With each EMI you pay, the outstanding principal reduces. This method is more cost-effective.
When you apply for a personal loan, you have to repay the lender the principal as well as the interest amount. However, it might not be easy to manually estimate how much your payable personal loan amount will be.
To do that, you can check out the Personal Loan EMI Calculator on the Bajaj Finserv website.
Once you select the desired loan amount, tenor and applicable interest rate, the calculator will suggest an EMI amount. It will also show you the exact personal loan interest amount.
The interest rate depends on the type of applicant and their credit score (750 or higher), income, age, relationship with the financial institution, existing debts and several other factors. Customers who have a favourable background and good credit history could receive lower interest rates.
The personal loan charges at Bajaj Finserv include a processing fee, which is up to 4.13% of the total availed amount.
There are no charges on downloading e-statements via our customer portal, My Account.
Repo rate is the rate at which the Reserve Bank of India (RBI) lends money to commercial banks. A cut in the repo rate usually translates to lower borrowing costs such as interest rates and EMIs for individuals and banks.
Repo rate affects the interest rate on personal loans only if you opt for a floating interest rate. Personal loans offered at fixed interest rates don't get affected by a cut in the repo rate.
Interest on a personal loan can be calculated in two methods - flat rate and reducing rate:
1. Flat rate
Here, the applicable rate of interest is charged on the entire loan principal throughout the loan tenure.
The formula for this method is –
EMI = (principal + total interest payable) / tenure in months
Wherein, total interest payable = P x r x n/100.
2. Reducing rate
Here, the applicable rate of interest is chargeable on the outstanding principal after each EMI is paid off. Thus, the interest is calculated every month on the loan balance.
The formula for this method is –
EMI = [P x r x (1 + r) ^n] / [(1 + r) ^(n-1)]
Here, 'P' is the principal amount, 'r' is the rate of interest, and 'n' is the tenure in months.
Low interest personal loans are the perfect solution for urgent financial needs. This will make it easier for you to make repayments. Here are a few factors that can help you find the best rate on a personal loan:
- Maintain a good credit score
- Compare personal loan interest rates to get the best offer
- Look for seasonal offers
- Qualify based on your employer’s credibility
The interest rate on a personal loan varies depending on the borrower. Personal loan interest rates can be influenced by variables such as your age, credit score, monthly income, relationship with the lender, and so on. You can get a Bajaj Finance Personal Loan with competitive interest rates starting at 10%.
It is recommended to compare the rates offered by different lenders to find the best personal loan interest rate in India. When applying for a personal loan, keep in mind that interest rates are not the only factor to consider. Other aspects, such as processing fees, prepayment charges, loan tenure, and repayment flexibility, should also be considered to ensure that you choose a loan that best suits your needs and financial capabilities. With Bajaj Finance Limited, you can get a personal loan with an interest rate starting at 10%.
