The rate offered depends on how much risk your profile carries for the lender. The table lists the factors that shape a personal loan interest rate.
| Factor | Why it can change the rate offered |
|---|
| CIBIL score | A record of on-time repayment signals lower risk |
| Income and employer | Stable salary supports repayment |
| Existing EMIs | A smaller share of income already committed leaves more room |
| Loan amount and tenure | Change the risk the lender carries |
Last updated: 23rd October, 2026
Documents do not change the rate, but mismatched details can slow approval. Keep names and addresses consistent across them.
Worked example: Priya in Lucknow
Priya is 32 and works as a salaried insurance claims manager in Lucknow, with a monthly pay of Rs. 70,000; her CIBIL score reads 760. Her offer came with a personal loan interest rate of 13% per annum for Rs. 3 lakh to renovate her kitchen and bathroom. She compared 2 tenures before accepting.
EMI = P × R × (1 + R)^N ÷ [(1 + R)^N − 1]. Here P = Rs. 3,00,000, R = 13 ÷ 1,200 and N = months.
| Tenure | Monthly EMI (Rs.) | Total interest (Rs.) | EMI as share of salary (%) |
|---|
| 36 months (3 years) | 10,108 | 63,895 | 14.4 |
| 48 months (4 years) | 8,048 | 86,316 | 11.5 |
Last updated: 23rd October, 2026
A 4-year term saves Rs. 2,060 a month against the 3-year one, at an added interest cost of Rs. 22,421. Her processing fee is capped at Rs. 12,390. Priya picked 36 months, as the tenure, not the rate, decided most of the difference.
What can delay approval: a CIBIL score below 650 or existing EMIs that take up a large share of your income. Names or addresses that do not match across documents, and more than one loan application in the same month, can also slow it down.
Comparing a personal loan interest rate across offers? With a Bajaj Finance Personal Loan, you can borrow Rs. 40,000 to Rs. 75 lakh, subject to eligibility. Check your loan offer with your phone number and a one-time password (OTP) → apply online → receive funds within 24 hours* of approval.
