Personal Loan Interest Rates

Check the latest personal loan rates offered by Bajaj Finance Limited ranges between 11% to 38%. The interest rate you would be offered will depend on many factors including credit score, monthly income, employment, etc. Know the best personal loan interest rates, other applicable fees and charges before applying for a loan.

Type of fee	Applicable charges
Rate of interest	11% to 38% 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) Up to Rs. 1,999/- for loan amount less than Rs. 2,00,000 Up to Rs. 3,999/- for loan amount from Rs. 2,00,000 to Rs. 3,99,999 Up to Rs. 5,999/- for loan amount from Rs. 4,00,000 to Rs. 5,99,999 Up to Rs. 7,999/- for loan amount from Rs. 6,00,000 to Rs. 9,99,999 Up to Rs. 8,999/- for loan amount from Rs. 10,00,000 to Rs. 14,99,999 Up to Rs. 9,999/- for loan amount from Rs. 15,00,000 to Rs. 19,99,999 Up to Rs. 10,999/- for loan amount from Rs. 20,00,000 to Rs. 24,99,999 Up to Rs. 11,999/- for loan amount from Rs. 25,00,000 to Rs. 29,99,999 Up to Rs. 12,999/- for loan amount of Rs. 30,00,000 and above All the Flexi charges above are inclusive of applicable taxes Loan amount includes approved loan amount, insurance premium, and VAS charges.
Bounce charges	In case of default of repayment instrument, Rs. 700 - Rs. 1,200 per bounce will be levied.
Pre-payment charges	Full Prepayment Term Loan: Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment. Flexi Term Loan (Flexi Dropline): Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment. Flexi Hybrid Loan: Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as of the date of full prepayment. Part-prepayment Term Loan: Up to 4.72% (inclusive of applicable taxes) of the principal amount of the loan prepaid on the date of such part-prepayment. Not Applicable for Flexi Term Loan (Flexi Dropline) and Flexi Hybrid. *Foreclosure will be processed post clearance of first EMI
Penal charge	Delay in payment of instalment(s) shall attract a penal charge of up to 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.
Mandate rejection charges	Rs. 450 per month from the first month of the due date for the mandate rejected by customer’s bank until the registration of new mandate.
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) charged in two scenarios: Scenario 1 - Over and above the period of 30 days from the date of disbursement of the Loan: Method of recovery of Broken Period Interest/Pre-monthly Instalment interest: For Term Loan: Deduct from disbursement or added in first EMI, as applicable. For Flexi Term Loan: Added to first instalment amount For Hybrid Flexi Loan: Added to first instalment amount Scenario 2: Less than period of 30 days from the date of disbursement of the Loan: Interest on first instalment will be charged for actual number of days.
Switch fee	Up to 1.18% of the loan amount (inclusive of applicable taxes). Switch fee is applicable only in case of switch of loan. In switch cases, processing fees will not be applicable.

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

*Terms and conditions apply.

For Micro Finance Loans, please note below:
Purchase of any non-credit product by the microfinance borrowers is purely on a voluntary basis. Minimum interest, maximum interest, and average interest are 13%, 38%, and 35.71% per annum respectively. Part pre-payment and Foreclosure charges are NIL.

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What is the personal loan interest rate?

The personal loan interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. Lenders determine this rate based on various factors, including the borrower's creditworthiness, income, and the prevailing market conditions.

Interest rates for personal loans can be fixed or variable. The fixed rate remains constant throughout the loan tenure, providing predictability for monthly payments. Conversely, variable rates may fluctuate based on market changes. Typically, borrowers with higher credit scores secure lower personal loan rates. Comparing rates from different lenders is crucial to finding the most favourable terms for a personal loan, minimizing overall borrowing costs.

You can calculate the interest on personal loan with our interest calculator

Factors Affecting Personal Loan Interest Rates

There are multiple factors that can affect your personal loan interest rate in India. It is recommended to ensure that all of the below criteria are in good health in order to avail of the loans at low-interest rates.

CIBIL Score: A high CIBIL Score indicates a clean financial track record and helps you secure a lower interest rate.

Occupation: Salaried and self-employed individuals may be offered different interest rates because of the nature of their income.

Income: Higher income helps you get a low-interest rate personal loan 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.

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

Employment: Being employed at a renowned organisation can help you get a better personal loan interest rate in India as there is more income stability.

Relationship with the lender: Existing customers may get a more favourable interest rate on personal loans.

Personal loan interest calculation with example

For instance, Priya took a personal loan of Rs. 1,00,000 at an interest rate of 15% p.a. for a tenure of 12 months. Here, Priya’s annual interest payable will be around Rs. 8,310, and her monthly EMI will be around Rs. 9,026. Borrowers can use the interest rate calculator to know the interest payable for multiple loan amounts by inputting principal, interest rate, and tenure.

The formula for calculating the equated monthly instalment (EMI) for a personal loan is given by:

EMI=P×(1+r)n−1r(1+r)n

where,

EMI is the Equated Monthly Instalment

P is the principal amount of the loan,

r is the monthly interest rate, and

n is the number of monthly instalments.

How to apply for a personal loan

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Step-by-step guide to apply for a personal loan

Click on ‘APPLY’ at the top of this page to open our online personal loan application form.
Enter your 10-digit mobile number and the OTP sent to your phone.
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 loan amount that you need. Choose from our three personal loan variants –Term, Flexi Term, and Flexi Hybrid.
Choose the repayment tenure – you can select tenure options of 6 months to 96 months and click on ‘PROCEED’.
Complete your KYC and submit your application.

Our representative will guide you on the next steps. The loan amount will be transferred to your bank account on the successful verification of your documents.

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 6 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.

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Personal Loan Interest Rates