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Personal loan interest rates ranging from 10% to 30.5% p.a.
You may be eligible for a pre-approved offer
Enter mobile and OTP | Check offer | Know your rates and charges
Latest personal loan interest rate
Bajaj Finance Personal Loan interest rate starts from 10% per annum, making it a suitable option if you are looking for a low interest rate personal loan. With flexible repayment options and competitive rates, it can help you manage planned or urgent expenses while keeping your monthly budget under control. Interest rates may be fixed or floating depending on the loan terms and eligibility.
| Type of fee | Applicable charges |
| Rate of interest per annum | 10% to 30.5% per annum. |
| Processing fees | Up to 4.13% of the loan amount (inclusive of applicable taxes). |
| Flexi Facility Charge | Term Loan – Not applicable Flexi Loans –Up To Rs 1,999 To Up To Rs 18,999/- (Inclusive Of Applicable Taxes) Will be deducted upfront from loan amount. |
| Bounce charges | Rs. 700 to Rs. 1,200/- per bounce “Bounce charges” shall mean charges for (i) dishonor of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonor of payment mandate or non-registration of the payment mandate or any other reason. |
| Part-prepayment charges | Full Pre-payment:
Part Pre-payment
|
| Penal charge | Delay in payment of instalment(s) shall attract Penal Charge at the rate of up to 36% per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
| Stamp duty (as per respective state) | Payable as per state laws and deducted upfront from loan amount. |
| Annual maintenance charges | Term Loan: Not applicable Flexi Dropline Loan: Up to 0.295% (Inclusive of applicable taxes) of the Dropline limit (as per the repayment schedule) on the date of levy of such charges. Flexi Hybrid Loan: Up to 0.472% (Inclusive Of Applicable Taxes) Of The Dropline Limit During Initial Tenure. Up to 0.295% (Inclusive Of Applicable Taxes) Of Dropline Limit during Subsequent Tenure |
| Credit guarantee scheme fee | Up to 1.18% p.a. (pro-rated daily till 31st March) (inclusive of all applicable taxes) of the loan amount |
| Credit guarantee scheme renewal fee | Up to 1.18% p.a. (inclusive of all applicable taxes) on the outstanding loan amount as on April 01 of the subsequent Financial Year. *Renewal Fee to be collected only for 3 subsequent financial years. **If the Remaining Tenure is less than 12 months, the CG Fee in subsequent years shall be charged prorated. |
Note: Additional cess if any, will be applicable to all charges according to state law.
*Terms and conditions apply.
What is the personal loan interest rate?
A personal loan interest rate is the percentage a lender charges on the amount you borrow. It determines your EMI and the total amount you repay over the loan tenure.
If you are looking for low interest personal loans, it is important to understand that the applicable rate may vary based on factors such as your credit score, income, employment profile, and repayment history.
Personal loans may have fixed or floating interest rates, so comparing available options and using an EMI calculator can help you choose a suitable repayment plan.
Why it matters: A difference of just 1–2% in interest rate can save you thousands over your loan tenure. Comparing rates from different loan offers is crucial to finding the most favourable terms for a personal loan, minimising overall borrowing costs. You can calculate the interest on personal loan with our interest calculator.
Factors affecting interest rates on personal loan
Personal loan interest rates depend on your financial profile, loan requirements, and lender policies. Understanding these factors can help you qualify for a more competitive interest rate. Even small changes in rate can affect total repayment. This is why many borrowers look for low interest personal loans to reduce costs. A strong financial profile improves your chances of better terms. You can also explore a personal loan to compare options and make informed borrowing decisions.
Let us break down the main things lenders look at when deciding your personal loan interest rate:
- CIBIL Score: Think of your CIBIL score as your financial report card. The higher your score, the more trustworthy you appear to lenders. A good score means lower risk for them — and a lower interest rate for you. Here’s how your score affects loan approval:
| Credit rating | CIBIL Score | Personal loan approval chances |
| Excellent | 800+ to 900 | Best chance for approval with lowest interest rates |
| Good | Above 750 | Likely approval with competitive rates |
| Average | From 650 to 750 | Possible approval, but rates may be higher |
| Poor | Below 650 | Loan may get rejected or come with high interest |
- Occupation: Whether you're salaried or self-employed plays a role in determining your interest rate. Salaried individuals, especially those working with reputed or government organisations, may enjoy lower rates due to stable income.
Monthly income: Higher income shows better repayment capacity, making you a low-risk borrower. This often leads to more favourable interest rates.
Why it matters: A stable and sufficient income can help you access current personal loan interest rates at the lower end of the scale.
Debt-to-income ratio: This ratio reflects how much of your income goes towards existing EMIs or debt.
Lower ratio = Higher chances of getting a low-interest loan.
If most of your income is tied up in repayments, lenders may charge a higher rate to cover their risk.
- Age of the borrower: Younger applicants, particularly those in their 20s and 30s, are evaluated based on their income stability and repayment capacity, which can influence the interest rate on personal loan.
- Employer profile: Employment with a reputed company or a government organisation demonstrates income stability, which can positively impact the interest rate on personal loan.
- Relationship with the lender: Borrowers with an existing account or a strong repayment history with the lender often benefit from more favourable interest rates. Existing Bajaj Finance customers may also receive pre-approved personal loan offers. Check your loan offer using just your mobile number and OTP.
How to calculate interest on a personal loan?
A personal loan’s interest can be calculated using a Personal Loan EMI Calculator or by applying the EMI formula manually. While both methods help estimate the total interest payable, an online calculator is quicker, more accurate, and eliminates manual errors.
Method 1: Using the personal loan EMI calculator
Follow these simple steps:
- Enter the required loan amount.
- Select the applicable interest rate.
- Choose the repayment tenure.
- The calculator instantly displays your EMI, total interest payable, and total repayment amount.
Method 2: Manual calculation
Use the EMI formula to calculate the total interest on your personal loan.
Step 1: Use the EMI formula
EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]
Where:
• P = Loan amount (Principal)
• R = Monthly interest rate
• N = Number of monthly instalments
Step 2: Practical example
Loan details:
● Principal loan amount (P) = Rs. 1,00,000
● Annual interest rate = 10%
● Monthly interest rate (R) = 10% ÷ 12 = 0.83% or 0.0083
● Loan tenure = 12 months
● Number of instalments (N) = 12
Calculation:
EMI = [1,00,000 × 0.0083 × (1.0083)^12] / [(1.0083)^12 - 1]
Monthly EMI = Rs. 8,791 (approx.)
Step 3: Calculate total interest
● Total repayment over 12 months: Rs. 8,791 × 12 = Rs. 1,05,492
● Total interest paid: Rs. 1,05,492 – Rs. 1,00,000 = Rs. 5,492
In this example, you pay an EMI of around Rs. 8,791 and total interest of Rs. 5,492 over one year.
How to apply for a personal loan
Step-by-step guide to apply for a personal loan:
- Click on ‘CHECK ELIGIBILITY’ on this page.
- Enter your 10-digit mobile number and the OTP sent to your phone.
- Check if you have an offer. If not, fill in the application form with your basic loan details, such as your full name, PAN, date of birth, and PIN code.
- Now, click on ‘PROCEED’ to visit the loan selection page.
- Enter the offer or loan amount that you need. Choose from our personal loan variants.
- Choose the repayment tenure and click on ‘PROCEED’.
- Complete your KYC and submit your application.
Key offerings: 3 loan types
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You can improve your chances of getting the best personal loan interest rate in India by maintaining a strong CIBIL score, having a stable income, and demonstrating a good repayment history. Bajaj Finance Personal Loan interest rates start from 10% p.a. for eligible applicants.
Personal loan interest is generally not tax-deductible. However, it may qualify for deduction if the loan is used for income-generating purposes or other eligible expenses as per the Income Tax Act. Eligibility depends on conditions and documentation requirements.
Income is a primary determinant of loan interest rates because lenders use it to assess repayment capacity and credit risk. A higher, stable income indicates lower default risk, which may result in lower interest rates, while lower income relative to existing debt can lead to higher rates or even loan rejection.
In most situations, lenders are unable to change the interest rate on personal loan during the loan term. The interest rate is normally fixed from the start of the loan, providing repayment stability. However, it's advisable to review the loan agreement to confirm if any provisions exist that allow rate changes under specific circumstances.
Current personal loan interest rates with Bajaj Finance typically range from 10% and 30.5% p.a., depending on factors such as your credit profile, income, repayment capacity, and loan type. The applicable rate may vary from one borrower to another.
To get a personal loan with low interest, maintain a high CIBIL score, ensure a stable income, and keep your existing debts low. Choosing a trusted lender can also improve your chances of securing better loan terms. Just enter your phone number and OTP to check if you are eligible for Bajaj Finance Personal Loan.
Choose a shorter tenure, make part-prepayments, or refinance your loan at a lower rate when eligible.
Pro tip: Paying EMIs on time improves your credit score and future loan terms.
It’s possible, but rare. You might need a co-applicant or collateral to negotiate better rates.
You can improve your chances of getting a lower personal loan interest rate by maintaining a strong credit score, making timely repayments, and keeping your credit utilisation low. Comparing loan offers from different lenders can help you identify suitable rates and terms. Choosing a loan amount that matches your needs, maintaining a stable income, managing existing debt responsibly, and checking pre-approved offers can also help you access more favourable borrowing terms.
Choosing between a fixed interest rate and a floating interest rate depends on individual preferences and financial situations. If you value stability and predictability, a fixed interest rate is ideal. However, if you can handle fluctuations and want the potential benefit of lower rates, a floating interest rate may be more suitable.
The speed of your personal loan documentation process depends on the lender's policies, your responsiveness, and the complexity of your application. Typically, it can take anywhere from a few hours to a few days for initial approval, and additional time for document verification and processing, varying between lenders.
Obtaining a personal loan without documents is typically not possible with any lender, as documentation is crucial to assess creditworthiness and mitigate the risk of the borrower.
Yes, improving your credit score or increasing your income can help you move closer to the lowest interest rate for personal loan. Already have a loan? Check if you have a pre-approved offer with better rates, using just your mobile number.
The EMI for a Rs. 1 lakh personal loan depends on the interest rate and repayment tenure. With the Bajaj Finance rate of interest, your EMI will vary based on your loan terms. For example, at 10% p.a. for 2 years, the EMI would be around Rs. 4,613, with total interest of approximately Rs. 10,719.
Your EMI is based on the interest rate and loan tenure. For example, with a 10% interest rate for a 5-year tenure, the EMI for a Rs. 20 lakh personal loan would be around Rs. 42,494.
If a large part of your income goes towards existing debts, you may be offered a higher interest rate. Lower debt levels often result in better rates.
You do not need to calculate EMI manually. You can simply use a personal loan EMI calculator to make the process easier and faster. It helps you:
● Adjust the loan amount, interest rate, and tenure instantly
● Find a suitable EMI based on your budget
● Compare different repayment options
● Avoid manual calculation errors
● Save time and plan better repayments
Consumer credit ratings directly affect loan interest rates because they indicate your creditworthiness and repayment history. Higher credit ratings generally qualify borrowers for lower interest rates, while lower ratings may result in higher rates or stricter lending terms.
A good credit score can help you secure a lower interest rate on a personal loan by demonstrating responsible credit management. Lenders view borrowers with strong credit scores as lower risk, which may improve loan terms and reduce borrowing costs.
Cumulative interest over time is calculated by adding the total interest paid across all loan repayments during the tenure. You can estimate it by subtracting the principal amount from the total amount repaid or by using a personal loan EMI calculator.
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Disclaimer
Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.
For customer support, call Personal Loan IVR: 7757 000 000