At an illustrative 15% per annum, a Rs. 1 lakh short-term personal loan costs Rs. 9,026 a month over 12 months (1 year). Stretching it to 24 months (2 years) nearly halves the EMI but nearly doubles the interest.
Worked example: Lalitha in Madurai
Lalitha is 44 and works as a salaried school teacher in Madurai. She earns Rs. 70,000 a month and has a CIBIL score of 760. Heavy rain damages her roof, and the repair costs Rs. 1 lakh. She takes a short-term personal loan at an illustrative 15% 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) | 9,026 | 8,310 | 12.9 |
| 24 months (2 years) | 4,849 | 16,368 | 6.9 |
Last updated: 16th October, 2026
The 24-month option lowers the EMI by Rs. 4,177 but adds Rs. 8,058 in interest. The processing fee on Rs. 1 lakh is up to Rs. 4,130. Lalitha picks 12 months (1 year) for her short-term personal loan, because Rs. 9,026 is under 13% of her salary and the repair is a one-off cost.
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.
Need a short-term personal loan for an emergency repair or bill? With a Bajaj Finance Personal Loan, you can borrow Rs. 40,000 to Rs. 75 lakh, subject to eligibility. Check your loan offer with your phone number and a one-time password (OTP) → apply online in about 5 minutes → receive funds within 24 hours* of approval.
