Current Interest Rate on Personal Loans
Type of fee |
Applicable charges |
Rate of interest |
11% to 32% p.a. |
Processing fees |
Up to 3.93% of the loan amount (inclusive of applicable taxes). |
Flexi Fee | Term Loan – Not applicable Flexi variant - A fee will be deducted upfront from the loan amount (as applicable below)
*All the Flexi charges above are inclusive of applicable taxes *Loan amount includes approved loan amount, insurance premium, and VAS charges. |
Bounce charges |
Rs. 700 - Rs. 1,200 per bounce. |
Pre-payment charges | Full Prepayment
Part-prepayment
*Foreclosure will be processed post clearance of first EMI |
Penal charge |
Delay in payment of instalment(s) shall attract Penal Charge of Rs. 8 - Rs. 12 per day 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 Loan (Flexi Dropline): Up to 0.295% (inclusive of applicable taxes) of the total withdrawable amount (as per the repayment schedule) on the date of levy of such charges. Flexi Hybrid Loan: Up to 0.295% (inclusive of applicable taxes) of the total withdrawable amount during the initial tenure. Up to 0.295% (inclusive of applicable taxes) of total withdrawable amount during subsequent tenure. |
Broken period interest / Pre-monthly Instalment interest |
Broken Period Interest/Pre-monthly instalment Interest" shall mean the amount of interest on loan for the number of day(s) which is (are): Scenario 1: Over and above the period of 30 (thirty) days from the date of disbursement of the loan. Method of recovery of Broken Period Interest/pre-monthly instalment interest:
Scenario 2: Less than period of 30 (thirty) days from the date of disbursement of the loan, interest on first instalment will be charged for actual number of days. |
Note: Additional cess if any, will be applicable to all charges according to state law.
*Terms and conditions apply.
How to apply for a personal loan
Frequently asked questions
Yes, there are part-prepayment charges applicable on a personal loan. However, if you have used the Flexi Loan facility, part-prepayment fees do not apply to you.
You are charged with a bounce charge when you fail to make an EMI payment.
You can pay back your personal loan within 12 months to 96 months. That is, you can spread out your EMIs over a maximum of 8 years.
Balance transfer may help you reduce your personal loan interest rates however it depends on the terms and offers provided by the lender.
The Reserve Bank of India (RBI) lends money to commercial banks at a repo rate. When the repo rate goes down, interest rates and EMIs for both individuals and banks tend to go down as well.
Repo rate only affects the personal loan rates if you choose a floating interest rate.
Banks and financial institutions usually have a charge to process your loan application. These charges vary according to the lender. The fees and charges for our personal loan are clearly mentioned on this page and the final loan document. We advise you to read through them thoroughly before applying.
Lowest-interest personal loans are the perfect solution for urgent financial needs. This will make it easier for you to make repayments. Here are a few factors that can help you find the best rate on a personal loan:
- Maintain a good credit score
- Compare personal loan interest rates to get the best offer
- Look for seasonal offers
- Qualify based on your employer’s credibility
The interest rate on a personal loan varies depending on the borrower. Personal loan interest rates can be influenced by variables such as your age, credit score, monthly income, relationship with the lender, and so on. You can get a Bajaj Finance Personal Loan with competitive interest rates starting at 11%.
It is recommended to compare the rates offered by different lenders to find the best personal loan interest rate in India. When applying for a personal loan, keep in mind that interest rates are not the only factor to consider. Other aspects, such as processing fees, prepayment charges, loan tenure, and repayment flexibility, should also be considered to ensure that you choose a loan that best suits your needs and financial capabilities. With Bajaj Finance Limited, you can get a personal loan with an interest rate starting at 11%.
Besides the interest rate, lenders often impose other loan charges on personal loans. Common ones include processing fees, bounce charges, annual maintenance charges, and mandate registration charges. It is crucial to carefully review a lender's terms to understand the full scope of potential charges before taking out a personal loan.
The prepayment charges for the term Loan are up to 4.72% (inclusive of applicable taxes) of the principal amount of the loan prepaid on the date of such part-prepayment. Part pre-payment charges are not applicable for Flexi Term Loan (Flexi Dropline) and Flexi Hybrid.
Your income plays a crucial role in determining your loan interest rate. A higher income often leads to a low-interest rate because it demonstrates your repayment capacity. Lenders use your income to assess the risk and decide on a favourable rate that aligns with your financial stability, potentially resulting in a lower interest rate.
Acquiring a personal loan with a low CIBIL Score can be challenging, as your credit score can influence your loan terms. Research extensively, and improve your creditworthiness over time to enhance your chances of securing a low-interest loan.
The requirements for a personal loan differ from lender to lender. Your CIBIL Score is one of the most critical elements that can influence your loan acceptance. It is recommended that you conduct research and meet all of the other eligibility criteria set by the lender. To be eligible for a Bajaj Finance Personal Loan, you must have a CIBIL score of 685 or above.
Your employment history significantly influences the interest rate of a personal loan. Stable employment demonstrates financial stability and lowers the risk for lenders, often resulting in more favourable rates. A longer and consistent work record could enhance your chances of securing a loan with lower interest.
In most situations, lenders are unable to change the interest rate on personal loans during the loan term. The interest rate is normally fixed from the start of the loan, providing repayment stability. However, it's advisable to review the loan agreement to confirm if any provisions exist that allow rate changes under specific circumstances.
Your risk tolerance and market forecast will influence your decision between fixed and fluctuating interest rates. Fixed rates provide stability, which is beneficial when interest rates are expected to climb. Floating rates might start low but rise over time. Consider your current financial situation as well as expected inflation patterns to determine which option is best for you in the fixed vs. floating interest rate debate.
The variable or floating interest rate fluctuates on a regular basis based on a predetermined benchmark, which is frequently connected to market conditions such as the prime rate or LIBOR. Changes are made at specified times, such as monthly, quarterly, or annually, as defined in the loan agreement, and may have an impact on the borrower’s repayment amount.
GST is not applicable on the interest portion of a personal loan but may be applicable on other aspects.
Personal loan interest is not tax deductible when it is used for personal expenses.
The interest payable on a Rs. 1 lakh loan varies depending on the loan terms. For example, the total interest payable for a Rs. 1 lakh loan, at an interest rate of 12% p.a. for a tenure of 2 years will be approximately Rs. 12,976.
The EMI for a Rs. 20 lakh personal loan depends on the interest rate and tenure. For example, at 14% interest over 5 years, the EMI would be approximately Rs. 46,565.
A flat interest rate charges interest on the entire loan amount for the full loan tenure, not taking into account the decreasing principal from paid EMIs, often leading to higher overall interest costs.
A reducing interest rate (or diminishing balance rate) calculates interest on the outstanding loan balance, which decreases as each EMI is paid, resulting in lower interest payments over time.
High current debt levels increase the perceived risk for lenders, often resulting in higher interest rates due to the borrower’s higher debt-to-income ratio.
Processing fees are usually a percentage of the loan amount and are charged upfront by the lender as a one-time fee during loan disbursal.
Balance transfer may help you by moving your existing loan to a new lender offering lower interest rates, thereby reducing your overall interest burden and monthly EMIs.
Amortisation schedule charges are fees for providing a detailed breakdown of each EMI, showing the principal and interest components.