Current personal loan interest rate - 2021
With a Bajaj Finserv Personal Loan, you can get up to Rs. 25 lakh at an attractive interest rate. The loan comes with no hidden charges and 100% transparency, which make your overall borrowing experience seamless.
The latest personal loan interest rates and charges are listed in the table below:
| Rate of Interest on Personal Loan | |
|---|---|
| Types of Fees | Charges Applicable |
| Rate of interest | 13% onwards |
| Processing fees | Up to 4% of the loan amount (plus applicable taxes) |
| Bounce charges | Rs.600 - Rs.1,200 per bounce (inclusive of applicable taxes) |
| Penal interest | A delay in payment of monthly instalment/EMI shall attract penal interest of 2% to 4% per month on the monthly instalment/EMI outstanding. This penal interest will be chargeable from the date of default until the receipt of the monthly instalment/EMI. |
| Document/statement charges Statement of Account/Repayment Schedule/Foreclosure Letter/No Dues Certificate/Interest Certificate/other documents |
Download your e-statements/letters/certificates at no extra cost by logging into our customer portal – Experia. You can get a physical copy of your statements/letters/certificates/other list of documents from any of our branches at a charge of Rs.50 (Inclusive of applicable taxes) per statement/letter/certificate. |
| Stamp duty | At actuals. (as per State) |
The table below shows other fees and charges:
Personal Loan Foreclosure Charges
| Loan Variant | Charges |
|---|---|
| Term loan | 4% plus applicable taxes on the principal outstanding amount as on the date of full pre-payment |
| Flexi term loan | 4% plus applicable taxes and cess on total withdrawable amount* (* Total loan amount that you can withdraw under Flexi loan from time to time as per the repayment schedule) on the date of levy of such charges |
| Flexi Hybrid loan | 4% plus applicable taxes and cess on total withdrawable amount* (* Total loan amount that you can withdraw under Flexi loan from time to time as per the repayment schedule) on the date of levy of such charges |
Personal Loan Part-prepayment Charges
| Borrower Type | Time Period | Part-prepayment Charges |
|---|---|---|
| All borrowers | More than 1 month from the date of loan disbursal | 2% + applicable taxes on part-payment amount paid* |
- *Part-prepayment made should be more than 1 EMI.
- *These charges are not applicable for the Flexi loan facility
Annual/Additional Maintenance Charges
| Loan Variant | Charges |
|---|---|
| Flexi term loan | 0.25% plus applicable taxes on the total withdrawable amount, irrespective of utilisation, on the date of levy of such charges |
| Flexi Hybrid loan | 0.25% plus applicable taxes on the total withdrawable amount, irrespective of utilisation, on the date of levy of such charges |
- *These charges will be levied annually.
Mandate Rejection Service Charge: Rs. 450 (Inclusive of applicable taxes)
Charges will be levied if the new mandate form is not registered within 30 days from the date of rejection of the previous mandate form by the customer's bank for any reasons whatsoever.
Note: Additional cess will be applicable on all charges in accordance with the state-specific laws.
Types of personal loan interest rates
Personal loans come with two types of rates of interest: Fixed interest rate and floating interest rate.
- Fixed interest rate
As the name suggests, the interest rate remains the same throughout the loan tenor. Thus, the loan EMIs will also remain constant. - Floating interest rate
A floating, adjustable, or variable interest rate is linked to an internal benchmark of a financial institution. Changes to this benchmark will affect the rates. Hence, floating rates vary throughout the loan tenor.
Both of these rates have advantages and disadvantages. Fixed rates keep EMIs constant, which helps in budgeting. On the other hand, floating rates go up or come down along with the internal benchmark rate.
Methods for Interest Calculation on Personal Loan
Personal loan interest rates are calculated in two ways—flat rate and reducing balance interest rate:
- Flat rate method
In this method, the applicable rate of interest is charged on the entire principal throughout the tenor.
- Reducing balance method
In the diminishing balance or reducing balance method, the applicable rate of interest is chargeable on the outstanding principal after each EMI is paid off. Thus, the interest is calculated every month on the loan balance. Borrowers pay lower interest on the loan compared to the flat rate method.
- Flat rate method
Interest rate calculation formula
The interest rate for a personal loan through the flat rate method and the reducing balance method is calculated using the following formula:
- Flat rate method
The rate of interest is chargeable on the entire loan principal.
The formula for this method is –
EMI = (principal + total interest payable) / loan tenor in months
Wherein, total interest payable = P x r x n/100 - Reducing balance method
The rate of interest is charged on the outstanding principal after the payment of each EMI.
The formula to calculate this is –
EMI = [P x r x (1 + r) ^n] / [(1 + r) ^(n-1)]
Here, 'P' is the loan amount or principal, 'r' is the rate of interest, and 'n' is the loan tenor in months.
Personal loan processing fees and interest rates FAQs
How to calculate the personal loan interest rate?
When you apply for a personal loan, you have to repay the lender the principal as well as the interest amount. However, it might not be easy to manually estimate how much your payable personal loan amount will be.
To do that, you can check out the Personal Loan EMI Calculator on the Bajaj Finserv website.
Once you select the desired loan amount, tenor and applicable interest rate, the calculator will suggest an EMI amount. It will also show you the exact personal loan interest amount.
What are the factors that affect personal loan interest rates?
- Credit score – The minimum credit score to avail of a personal loan is 750. Applicants who hold a high credit score are more creditworthy and can get lower interest rates.
- Occupation - Financial institutions may offer different interest rates to salaried and self-employed applicants. The former may be at times considered less risky from the perspective of lending.
- Income – An applicant with a higher income may receive a lower rate of interest owing to reduced chances of default.
- Age – Individuals of a lower age can receive more affordable loan rates than those nearing retirement. Young applicants have more years of service left and are deemed less risky.
- Place of employment – Those employed in a renowned organisation may be liable to receive lower rates.
- Association with the lender – Existing customers of a financial institution may also receive lower loan rates.
What is the lowest interest rate available on a personal loan?
The interest rate depends on the type of applicant and their credit score (750 or higher), income, age, relationship with the financial institution, existing debts and several other factors. Customers who have a favourable background and good credit history could receive lower interest rates.
What is the maximum personal loan repayment tenor at Bajaj Finserv?
The maximum personal loan repayment tenor that you can opt for is 60 months (5 years).
What are reducing interest rates on personal loans?
A diminishing or reducing interest rate applies to the outstanding loan balance after the payment of each EMI. This process of calculating the interest is known as the reducing balance method.
The fixed-rate method is an alternative process, where the rate of interest is chargeable on the entire loan amount or principal throughout the tenor.
What is the processing fee for personal loans?
To avail of a personal loan, you need to pay a processing fee. The processing charge at Bajaj Finserv is up to 4.13% of the total loan amount.
Bajaj Finserv lets you borrow up to Rs. 25 lakh, which can be repaid over a flexible tenor. It comes with low personal loan interest rates that can be negotiated based on your CIBIL score and repayment history.
What is the pre-closure charge for personal loans?
The pre-closure charges are 4%, along with applicable taxes, on the principal outstanding. The time period is more than 1 month from the date of disbursal of the loan.
Personal loan foreclosures mean the closing of the loan account before the end of the tenor. Many borrowers like to do that to keep away the entire obligation of the loan. But you need to pay personal loan pre-closure charges to the lender for that.
What are the charges for personal loans?
The personal loan charges at Bajaj Finserv include a processing fee, which is up to 4.13% of the total availed amount.
There are no charges on downloading e-statements via our customer portal, Experia. However, you need to pay Rs.50 + taxes if you wish to get the physical copies.
What is repo rate and how does it affect personal loans?
Repo rate is the rate at which the Reserve Bank of India (RBI) lends money to commercial banks. A cut in repo rate usually translates to lower borrowing costs such as interest rates and EMIs for individuals and banks.
Repo rate affects the interest rate on personal loans only if you opt for a floating interest rate. Personal loans offered at fixed interest rates don't get affected by a cut in the repo rate.
How to apply for a Bajaj Finserv Personal Loan?
Applying for a Bajaj Finserv Personal Loan is easy. Just follow these steps:
Step 1 - Fill in your information, including your personal, employment and financial details, in the online application form on the Bajaj Finserv website.
Step 2 - Select the loan tenor and the amount needed for quick approval
Step 3 - Submit the relevant documents to a representative of Bajaj Finserv, who will contact you soon
Step 4 - Get the required loan amount disbursed into your bank account within 24 hours of approval
That's it, you can now apply for personal loans and fulfil your needs quickly.
Check Your Personal Loan EMI
Disclaimer :
The EMI calculator is an indicative tool. The results may vary based on actual interest rates and the period between disbursal date and the first EMI date. Calculation results are approximate and for information purposes only.
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