What Is a Multipurpose Loan?

What Is a Multipurpose Loan?

A multipurpose loan can help you meet different financial needs, such as wedding expenses, home improvements, education or medical costs. Learn how it works and what to consider before applying.
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Rs. 40,000 - Rs. 55 lakh

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In Summary


A multipurpose loan can be used to manage planned or unexpected expenses, including weddings, home improvements, education and medical needs. The loan amount and repayment period should match your financial capacity.


  • Use the loan for a specific financial need and plan the repayment before applying.
  • Compare the loan amount and tenure based on your monthly budget.
  • Use a personal loan EMI calculator to estimate your monthly instalments.
  • Check your eligibility and required documents before submitting an application.

A personal loan can provide funds for different needs through a single borrowing arrangement. Review the loan terms and repayment schedule before applying.

What is a multipurpose personal loan?

A multipurpose personal loan is an unsecured loan that you can use to meet different financial requirements. Unlike loans designed for a specific purpose, such as education or home loans, the borrowed funds can be used for eligible personal expenses.


For example, you can consider a personal loan when you need funds for a wedding, home renovation, education expenses or medical treatment. Before applying, assess the amount you need and whether the resulting EMI fits your monthly budget.


✅  Check your pre-approved loan offer  with phone number and OTP → Apply online in 5 minutes → Receive funds within 24 hours*.


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What can you use a multipurpose personal loan for?

A personal loan can be considered for several planned or unexpected expenses. The following are some common uses.

1. How can you use a personal loan for wedding expenses?

Wedding expenses can include venue bookings, catering, decorations, photography, clothing and other arrangements. A personal loan can help you fund these expenses when your available savings do not cover the planned cost.


Before borrowing, prepare a wedding budget and separate essential expenses from optional spending. This can help you estimate the amount you actually need.


If you are considering a personal loan, use a personal loan EMI calculator to estimate the monthly repayment based on the loan amount, interest rate and tenure.

 

2. Can you use a personal loan for home improvements?

You can consider a personal loan for eligible home improvement expenses, such as kitchen upgrades, repairs, painting or other renovation work.


Before taking the loan, prepare an estimate for materials, labour and other project costs. Comparing this estimate with your available savings can help you determine the amount you need to borrow.

 

3. Can a personal loan help meet education expenses?

Education can involve expenses beyond tuition fees. Depending on your requirements, you may need to account for course fees, study materials, living expenses, vocational training or professional development.


A personal loan can be considered to meet eligible education-related expenses. Before applying, review the total cost of the course and calculate the amount that you need after accounting for your available funds.


You can use a personal loan eligibility calculator to check the applicable eligibility criteria before applying.

 

4. Can you use a personal loan for medical expenses?

Medical treatment can result in planned or unexpected expenses, including hospitalisation, diagnostic tests, treatment and medicines. If you need additional funds, a personal loan can be considered for eligible medical expenses.


When assessing the required loan amount, consider the expected treatment cost along with your existing financial commitments. Borrowing only the amount required can help you manage the resulting repayment.


With a Bajaj Finance Personal Loan, you can get funds from Rs. 40,000 to Rs. 55 lakh. Check your eligibility for personal loan using just mobile number and OTP – 100% online process.


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What should you consider before using a personal loan?

A multipurpose personal loan can address different financial requirements, but borrowing creates a repayment obligation. Consider these factors before applying:


  • Amount required: Estimate your expense and borrow only what you need.
  • Interest rate: Check the applicable interest rate before accepting the loan.
  • EMI: Calculate the monthly repayment and compare it with your monthly budget.
  • Tenure: Review different repayment periods and their impact on the EMI and total repayment.
  • Processing fee: Check the applicable processing fee and other charges.
  • Existing commitments: Include your current EMIs and regular expenses when assessing repayment capacity.
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How much can you borrow through a personal loan?

A Bajaj Finance Personal Loan gives you funds from Rs. 40,000 to Rs. 55 lakh through a 100% online process. 


  • Repayment tenure: 12 months to 108 months
  • Interest rate: 10% and 30.5% per annum.
  • CIBIL Score: 650 or higher 
  • Disbursal: Within 24 hours*  of document verification
  • Collateral: Not required — fully unsecured loan
  • Eligibility: Salaried or self-employed Indians aged 21 years to 80 years*


You can check your eligibility using only your mobile number and OTP, without visiting a branch.



A multipurpose personal loan can be considered for different financial needs, including wedding expenses, home improvements, education and medical costs. The funds can be used according to your requirements, subject to the applicable loan terms.


Before applying, calculate the amount you need, review the borrowing costs and check whether the EMI fits your monthly budget. This can help you make a more informed borrowing decision.

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Key offerings: 3 loan types

  • Flexi Hybrid Loan
  • Flexi Dropline Loan
  • Term Loan

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    You can pay interest-only EMIs for up to 36 months, after which, the EMI will consist of both, the principal and the interest. EMI is applicable only on the withdrawn amount.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest on the loan amount you withdraw.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Amount disbursed in one go
    The entire loan amount is disbursed at the start.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest.

  • Flexi facility charges
    No Flexi facility charges.

Personal loan interest rate and applicable charges

Type of fee

Applicable charges

Rate of interest per annum

10% to 30.5% p.a.

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:

  • Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment

  • Flexi Term (Dropline) Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

  • Flexi Hybrid Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

Part Pre-payment

  • Up to 4.72% (Inclusive of applicable taxes) of the principal amount of Loan prepaid on the date of such part Pre-Payment.

  • Not Applicable for Flexi Term (Dropline) Loan and Flexi Hybrid Term Loan.

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 Term (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 Term 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 feeUp to 1.18% p.a. (pro-rated daily till 31st March) (inclusive of all applicable taxes) of the loan amount
Credit guarantee scheme renewal feeUp 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.

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Frequently asked questions

Overview

Is a multi-purpose loan the same as a personal loan?

A multipurpose loan and a personal loan can serve similar needs. A personal loan is generally unsecured and can be used for various expenses, subject to the lender’s terms and conditions. You can check your eligibility using only your mobile number and OTP, without visiting a branch.

A multipurpose loan does not always require collateral. Whether security is needed depends on the loan type, lender’s terms, loan amount and applicant’s eligibility. With a Bajaj Finance Personal Loan, you can get the funds within 24 hours* of approval. Check your offer in just 2 steps and apply online to get our loan.

With a Bajaj Finance Personal Loan, you can get funds from Rs. 40,000 to Rs. 55 lakh. Check your eligibility for personal loan using just mobile number and OTP – 100% online process.

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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