At an illustrative 17% per annum, a Rs. 1.2 lakh Insta Personal Loan with paperless approval costs Rs. 5,933 a month over 24 months (2 years). A shorter tenure raises the EMI but cuts the total interest.
Worked example: Sameer in Kochi
Sameer is 31 and works as a salaried hotel operations executive in Kochi. He earns Rs. 55,000 a month and has a CIBIL score of 735. He is new to Bajaj Finance, so he generates an offer with his mobile number and OTP, then completes video KYC for paperless approval. He borrows Rs. 1.2 lakh for a family medical bill at an illustrative 17% per annum.
EMI = P × R × (1 + R)^N ÷ [(1 + R)^N − 1]. P is the loan amount in rupees, R is the annual rate divided by 12 and by 100, and N is the tenure in months. The formula spreads the principal and interest into equal monthly payments, so early EMIs carry more interest and later ones more principal. All figures are rounded to the nearest rupee.
| Tenure | Monthly EMI (Rs.) | Total interest (Rs.) | EMI as share of salary (%) |
|---|
| 12 months (1 year) | 10,945 | 11,335 | 19.9 |
| 24 months (2 years) | 5,933 | 22,394 | 10.8 |
Last updated: 15th October, 2026
The 24-month option lowers the EMI by Rs. 5,012 but adds Rs. 11,059 in interest. The processing fee on Rs. 1.2 lakh is up to Rs. 4,956. Sameer picks 24 months (2 years), because an EMI near 20% of his salary would leave too little for rent.
What can delay paperless approval: a mismatch between your KYC details and bank records, a poor video KYC connection, or a CIBIL check that needs further documents.
