Personal Loan Interest Rate 2025

Bajaj Finance offers personal loans with interest rates starting as low as 10% p.a., making it a smart choice for those seeking low-interest personal loans. 
 

✅ Check your offer in just 2 steps to know the exact interest rate applicable for you and plan your repayment easily. 
 

Use the interest calculator to get accurate repayment details based on the latest rates for a personal loan. It helps you plan better with competitive interest rates and manage your loan efficiently, ensuring lower EMIs. By understanding the fees and charges, you can make informed decisions and comfortably repay your loan.

Note: Additional cess if any, will be applicable to all charges according to state law.
 

*Terms and conditions apply.

In simple terms, it’s the cost you pay for borrowing money — shown as a percentage of your loan amount. Lenders decide your personal loan interest rate based on different factors, including:

• Your credit score
• Income and employment details
• Current market conditions
   

There are two types of personal loan interest rates:

• Fixed interest rate: This stays the same throughout your loan term. Great if you want predictable EMIs.
• Floating/variable interest rate: This can change based on market conditions. Your EMI may go up or down over time.
   

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.

Getting the best deal on a personal loan isn't just about choosing the right lender — it is also about how strong your financial profile is. Many key factors impact the interest rate you are offered, and even a small difference in rate can impact your total repayment significantly.
 

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:

Pro tip: Check your credit score regularly and pay EMIs on time. A good credit score improves your chances of securing the lowest personal loan interest rates.
 

• 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 — especially those in their 20s and 30s — may get more competitive interest rates because they have more working years ahead, offering longer repayment potential.
• Your employer: Working for a well-known company or a government institution often works in your favor. It signals income stability, which lenders like.
• Relationship with the lender: If you already have an account or past loan history with a lender and a good repayment track record, you might get preferential interest rates.
   

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Understanding the calculation helps you verify your EMI and total interest cost. Let's break it down with a practical example:
 

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
 

2: Practical example
 

Loan details:

• Principal loan amount (P) = Rs. 1,00,000
• Annual interest rate = 15%
• Monthly interest rate (R) = 15% ÷ 12 = 1.25% or 0.0125
• Loan tenure = 12 months
• Number of instalments (N) = 12
   

Calculation:

EMI = [1,00,000 × 0.0125 × (1.0125)^12] / [(1.0125)^12 - 1]
 

Monthly EMI = Rs. 9,026
 

Step 3: Calculate total interest

• Total repayment over 12 months: Rs. 9,026 × 12 = Rs. 1,08,312
• Total interest paid: Rs. 1,08,312 – Rs. 1,00,000 = Rs. 8,312
   

In this example, you pay an EMI of Rs. 9,026 and total interest of Rs. 8,312 over one year.

Why you don't need to calculate manually

You don't need to calculate manually—just use our free personal loan EMI calculator. It helps you:
 

• Adjust the loan amount, interest rate, and tenure instantly
• Find the most comfortable EMI for your budget
• Compare different scenarios
• Avoid calculation errors
• Save time and effort
   

*Terms and conditions apply.

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.