Unlike financial products such as home loans, the interest rate for a personal loan varies for each borrower.
Personal loans have fluctuating interest rates starting from 13%, depending on how well you meet the eligibility criteria. If you plan to apply for a personal loan, you must understand the factors that determine your interest rate.
Keep the following things in mind to get affordable interest rates on your personal loan:
1. Credit score
Your credit score acts as a validation of how you have performed with respect to the payments of previous loans and credit cards.
Each timely payment made against your previous loan adds to your credit score. However, late payments or defaults can bring it down. Your CIBIL score ranges between 300 and 900. A score of 750 or higher is considered healthy. If you have an impressive credit score, your lender will likely offer you better terms on your loan and vice versa.
2. Monthly income
Lenders prefer borrowers with higher monthly income as they are more likely to repay the loan on time. A higher income implies higher affordability for the loan.
Bajaj Finserv offers personal loans to individuals who meet its simple salary eligibility parameters. If you reside in one of the metros, you are required to have a salary of Rs. 35,000. Residents of other cities can avail themselves of a personal loan with a lower monthly salary.
Being employed with a reputable firm can be more beneficial than you may think. Those working at good organisations are considered more stable and responsible when paying EMIs on time.
The nature of your employment also impacts loan interest rates. A salaried employee may get a different rate from a self-employed professional. Borrowers nearing retirement might have to pay higher interest to get a personal loan.
4. Your relationship with Bajaj Finserv
Bajaj Finserv offers its existing customers special privileges and benefits, including special deals, pre-approved offers, and more.
If you are an existing customer with a good repayment record, you may be eligible for rate benefits as well as faster processing.
Each factor mentioned above can impact the interest rates for a personal loan. Understanding how these factors can get you a good deal will help you choose the right time to apply for a loan.
Additional read: Fixed vs floating interest rates
At Bajaj Finserv, we offer personal loans of up to Rs. 25 lakh at affordable interest rates. If you plan to apply for a personal loan, get in touch with us to know the best deal we can offer you.
Alternatively, you can start by checking our eligibility criteria and filling an online personal loan application. On approval, the loan amount will be deposited in your bank within 24 hours.
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