One mistake, such as borrowing Rs. 50,000 more than you need, can add thousands in interest and fees. The worked example shows the cost of tenure and amount choices on one loan.
Worked example: Nidhi in Aligarh
Nidhi is 32 and works as a salaried university administrator in Aligarh. She earns Rs. 66,000 a month and has a CIBIL score of 749. She first planned to borrow Rs. 2.7 lakh, then cut it to Rs. 2.2 lakh, the real cost of her sister's wedding, to avoid the fifth mistake. She borrows at an illustrative 15.5% 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 (%) |
|---|
| 24 months (2 years) | 10,719 | 37,266 | 16.2 |
| 36 months (3 years) | 7,680 | 56,493 | 11.6 |
Last updated: 21st October, 2026
The 36-month option lowers the EMI by Rs. 3,039 but adds Rs. 19,227 in interest. The processing fee on Rs. 2.2 lakh is up to Rs. 9,086, against up to Rs. 11,151 on Rs. 2.7 lakh. Nidhi picks 36 months (3 years), since a 16.2% EMI share would strain her budget, which would be another mistake.
What can delay approval: a CIBIL score below 650 or existing EMIs that take up a large share of your income. Names or addresses that do not match across documents, and more than one loan application in the same month, can also slow it down.
Applying without these mistakes? With a Bajaj Finance Personal Loan, you can borrow Rs. Rs. 40,000 to Rs. Rs. 75 lakh, subject to eligibility. Check your loan offer with your phone number and a one-time password (OTP) → apply online → receive funds within 24 hours* of approval.
