Personal loan interest rates, fees and charges

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.

Types of fees

Charges applicable

Interest rate

13% onwards

Processing fees

Up to 4% of the loan amount (inclusive of GST)

Penal interest

Any delay in payment of monthly instalment/ EMI shall attract penal interest at the rate of 2% to 4% per month on the monthly instalment/ EMI outstanding, from the date of default until the receipt of monthly instalment/ EMI.

Part-prepayment charges**

2% + applicable taxes on part-payment amount paid

Bounce charges

Rs. 600 – Rs. 1,200 per bounce (inclusive of applicable taxes)

Stamp duty At actuals. (as per state)
Mandate Rejection Charges Rs. 450/- (Inclusive of applicable taxes) per month from the first month of due date for mandate rejected by customer’s bank until the new mandate is registered


**These charges are not applicable for the Flexi Loan facility. Moreover, the part-prepayment should be more than 1 EMI.

Types of personal loan interest rates

Personal loans come with two types of rates of interest: Fixed interest rate and floating interest rate.

1. 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.

2. 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:

1. Flat rate method

In this method, the applicable rate of interest is charged on the entire principal throughout the tenor.

2. 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.

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:

1. 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

2. 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.

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Annual maintenance charges

Loan variant


Flexi Term and Hybrid loan

0.25% plus applicable taxes, on the total withdrawable amount irrespective of utilisation on date of levy of such charges


Personal Loan Foreclosure Charges

Loan variant


Term loan

4% plus applicable taxes on the principal outstanding amount as on the date of such full pre-payment

Flexi Term and Hybrid loan

4% plus applicable taxes 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).


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.

Additional cess will be applicable on all charges for all products in accordance with the state-specific laws.

Bajaj Finserv offers personal loans of up to Rs. 25 lakh at competitive interest rates starting at 13%. There are no hidden charges, and you are assured of 100% transparency.

By securing an affordable interest rate, you can use the Bajaj Finserv Personal Loan to meet your financial goals cost-effectively. When applying for a personal loan, do account for the processing fee of up to 4% of the loan amount plus taxes. This is a one-time fee.You can split repayment into a maximum of 60 EMIs as you get a flexible repayment tenor up to 60 months. For ease of planning, use the Personal Loan EMI Calculator.

Prior planning is a must when taking a personal loan as defaults attract fines and penal interest. The EMI bounce charges range from Rs. 600 to Rs. 1,200, and penal interest is charged at the rate of 2% to 4% per month on the monthly instalment/ EMI outstanding, from the date of default until the receipt of monthly instalment/ EMI.

Part-prepayments help make loan repayment cheaper as they reduce the outstanding principal. However, make sure to judge the benefit of a part-prepayment by accounting for the fee of 2% plus taxes on the amount paid. The part-prepayment fee does not apply to the Flexi loan facility.

If you want to pre-close your loan, you will incur a nominal charge of 4% plus taxes on the outstanding principal. For a Flexi loan, the foreclosure charge is 4% plus taxes and cess on the withdrawable amount.

To view your loan documents and statements, visit the customer portal – My Account. You can download e-statements, letters, certificates and more from My Account.

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Frequently asked questions

What is the processing fee for a personal loan?

The processing fee for a Bajaj Finserv Personal Loan may go up to 4% of the loan amount plus taxes. This fee depends on the loan amount and factors such as your eligibility.

Is there a charge applicable on part-prepayments?

When making a part-prepayment, you must account for a fee of 2% plus taxes on the part-prepayment amount made. However, part-prepayment fees do not apply to you if you have availed of the Flexi loan facility.

What does bounce charge mean?

A bounce charge is the penalty incurred when you miss an EMI payment. Bajaj Finserv charges between Rs. 600 - Rs. 1,200 per bounce (inclusive of applicable taxes), for every EMI missed. Also, in case of late payment or EMI(s) default, penal interest will be levied at a rate of 2% - 4%.

What is the interest rate for a personal loan?

You can avail of a Bajaj Finserv Personal Loan at a competitive interest rate starting at 13%.

What is the foreclosure charge for personal loans?

When foreclosing your loan, you must account for the foreclosure charge of 4% plus taxes on the outstanding principal if you have taken a term loan. For a Flexi Term loan or a Flexi Hybrid loan, the foreclosure charge is 4% plus tax and cess on the total withdrawable amount.

What are the factors that affect personal loan interest rates?

CIBIL score: 750 is the minimum CIBIL score required for a personal loan. High CIBIL scores indicate a clean financial track record and help you secure a lower interest rate. Click here to check your CIBIL score for free.

Occupation: Salaried and self-employed individuals may be offered different interest rates because of the nature of their income. Often, salaried persons are treated as less risky.

Income: Higher-income helps you get a lower interest rate as lenders can be assured of repayment.

Debt-to-income ratio: Keeping this ratio low helps reduce the risk of default as you will have more funds to pay your EMIs. The interest rate may be lower accordingly.

Age: Younger applicants, with many earning years remaining, may receive more affordable rates than those nearing retirement.

Employment: Being employed at a renowned organisation can help you get a better rate as there is more job and income stability.

Association with the lender: Existing customers may get more favourable interest rates.

What is the maximum and minimum repayment tenor?

You can repay your loan over a tenor of up to 60 months. That is, you can space out your EMIs over a maximum of 5 years.

What is meant by flat and reducing balance methods?

In the flat-rate method you are charged interest on the entire principal throughout the tenor. This works out to be expensive. In the reducing balance method, you are charged interest on the outstanding principal. With each EMI you pay, the outstanding principal reduces. This method is more cost-effective.

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 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 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, My Account. 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 the 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.

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