Benefits of a personal loan

Benefits of a personal loan

A Bajaj Finance Personal Loan provides you Rs. 40,000 - Rs. 55 lakh without pledging any asset, repayable over 12 months to 108 months. Check your pre-approved offer using your mobile number and OTP.
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Rs. 40,000 - Rs. 55 lakh

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In summary

A personal loan is an unsecured loan you can use for any legal purpose, with no collateral and no restriction on end use. Approved amounts are disbursed within 24 hours*, Key personal loan benefits from Bajaj Finance are:

  • Disbursal: Within 24 hours* of document verification
  • Collateral: Not required — fully unsecured loan
  • Interest rate: 10% to 30.5% per annum.
  • CIBIL score: 650 or higher 
  • Repayment tenure: 12 months to 108 months
  • Processing fee: Up to 4.13% of the loan amount (inclusive of taxes)
  • Eligibility: Salaried or self-employed Indians aged 21 years to 80 years

You can check your eligibility using only your mobile number and OTP, without visiting a branch

What are the various benefits of a personal loan?

A Personal loan is collateral-free funding for planned and emergency expenses such as medical bills, travel, education, or weddings. That freedom of use is among the main advantages of personal loans. 


Personal loan benefits from Bajaj Finance also include flexible repayment methods depending on the variant you choose. For Flexi Hybrid variant, you can choose to pay interest-only EMIs for the initial part of your tenure (up to 36 months). For a regular term loan, your repayment consists of interest + principal from the start.


You can also check your pre-approved offer online with just your phone number and OTP.

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Top 10 personal loan benefits

  • 1. High loan amount

    With a Bajaj Finance Personal Loan, you can get funds from Rs. 40,000 to Rs. 55 lakh. Check your eligibility for personal loan using just mobile number and OTP – 100% online process.

  • 2. Flexible tenures

    Repayment tenure ranges from 12 months to 108 months, allowing you to plan your EMIs based on your budget.

  • 3. Quick disbursal

    Loan amounts are typically disbursed within 24 hours*, subject to approval, ensuring timely access to funds.

  • 4. No collateral required

    Personal loans are unsecured loans, so no asset such as property or gold is required as security.

  • 5. Competitive interest rates

    Interest rates generally range from 10% and 30.5% p.a., helping you manage repayment efficiently.

  • 6. Minimal documentation

    The application process requires basic documents such as identity proof, address proof, and income proof. Know all the personal loan documents required during application.

  • 7. Simple eligibility criteria

    Eligibility requirements are straightforward, making it easier for both salaried and self-employed individuals to apply.

  • 8. Multiple usage options

    A personal loan can be used for any legal purpose, including medical expenses, home renovation, travel, or education.

  • 9. Flexi loan facility

    Some lenders offer a Flexi facility, allowing you to withdraw funds as needed and pay interest only on the utilised amount.

  • 10. Pre-approved offers

    You can check your pre-approved personal loan offer using your mobile number and OTP without visiting a branch.

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Eligibility criteria and documents for personal loan

You can easily get the funds you need by meeting the following criteria:

  • Eligibility criteria for personal loan


    CriterionRequirement
    NationalityIndian
    Age21 years to 80 years
    Employment typePublic, private, or MNC
    CIBIL score650 or higher
    Customer profileSelf-employed or salaried

    *You must be 80 years or younger at the end of your chosen loan tenure.

  • Documents required for personal loan

    Depending on your profile, you will need the below documents at the time of application:


    Document categoryAccepted options
    KYC proofAadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register/ NREGA job card
    Identity proofPAN card, Real-time image / photograph
    Employment proofEmployee ID card, Letter of Allotment of Accommodation Issued by Employer
    Income proofSalary slips — last 3 months, Bank account statements — last 3 months
    OthersPension order, Utility bill, Phone bill, Piped gas bill, Property / Municipal tax receipt

    Check your eligibility for personal loan using just mobile number and OTP – 100% online process. 

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How to apply for personal loan?

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

    1. Click on ‘CHECK ELIGIBILITY’ on this page.
    2. Enter your 10-digit mobile number and the OTP sent to your phone.
    3. Check if you have an offer. If not, fill in the application form with your basic loan details, such as your full name, PAN, date of birth, and PIN code.
    4. Now, click on ‘PROCEED’ to visit the loan selection page.
    5. Enter the offer or loan amount that you need. Choose from our personal loan variants.
    6. Choose the repayment tenure and click on ‘PROCEED’.
    7. Complete your KYC and submit your application.

    Our representative will contact you for further steps.

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Can a personal loan help with debt consolidation?

Yes — a personal loan can consolidate multiple debts because it carries no end-use restriction and can be used for any legal purpose. You take one loan, clear the existing dues, and move from several due dates to a single EMI.


Whether it helps financially depends on one comparison you must run yourself:

What to compareYour existing debtBajaj Finance Personal Loan
Interest rateRate on each current borrowing10% to 30.5% per annum, set by your profile
TenureRemaining months on each12 months to 108 months
One-time costForeclosure or closure charges levied by each existing lenderUp to 4.13% of the loan amount (inclusive of taxes)
Repayment shapeMultiple EMIs on multiple datesOne EMI on one date

Consolidation is worth doing only when the personal loan's effective rate — the interest plus the processing fee — sits below the blended rate you are currently paying. If your existing debt is already priced in the low teens, a personal loan at the upper end of the band will cost you more, not less.


Two cautions before you consolidate:

  • Tenure stretching. Moving a 24-month balance onto a 96-month tenure lowers your EMI but raises the total interest you pay across the loan.
  • Re-borrowing. Consolidation clears your existing lines. If you then use those cleared lines again, your total debt rises rather than falls.

How does tenure change what you pay?

A longer tenure lowers your monthly EMI and raises your total interest outgo. A shorter tenure does the reverse. This is the single most consequential choice you make after the loan amount.


The illustration below assumes a Rs. 5 lakh loan at 14% per annum. — a rate chosen from within the 10%–30.5% band purely to show the mechanism. Your own rate will differ.


TenureMonthly EMITotal interest paid
24 monthsRs. 24,006Rs. 76,155
36 monthsRs. 17,089Rs. 1,15,197
60 monthsRs. 11,634Rs. 1,98,048
84 monthsRs. 9,370Rs. 2,87,080
96 monthsRs. 8,686Rs. 3,33,832

Stretching from 24 months to 96 months cuts the EMI by roughly 64%, but multiplies the interest paid by more than four times. Run your own figures on the personal loan EMI calculator before you fix a tenure.

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Why are personal loans considered collateral-free?

A personal loan is collateral-free because the lender underwrites your repayment capacity rather than an asset's resale value. Your CIBIL score, income record, and employment stability carry the weight that a property title would carry in a secured loan.


This changes three practical things for you:

  • No valuation step: There is no asset to inspect, appraise, or title-check, which is why disbursal can happen within 24 hours* of approval.
  • No asset at stake: Your home or gold is not attached to the loan, so a repayment difficulty does not put that asset into a recovery process.

  • A higher rate band: Because the lender carries unsecured risk, the rate band runs wider and higher than a secured loan's band.


The trade-off is direct: you keep your assets outside the transaction, and you pay for that through pricing and a stricter credit filter.

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Key offerings: 3 loan types

  • Flexi Hybrid Loan
  • Flexi Dropline Loan
  • Term Loan

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    You can pay interest-only EMIs for up to 36 months, after which, the EMI will consist of both, the principal and the interest. EMI is applicable only on the withdrawn amount.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest on the loan amount you withdraw.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Amount disbursed in one go
    The entire loan amount is disbursed at the start.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest.

  • Flexi facility charges
    No Flexi facility charges.

Personal loan interest rate and applicable charges

Type of fee

Applicable charges

Rate of interest per annum

10% to 30.5% p.a.

Processing fees

Up to 4.13% of the loan amount (inclusive of applicable taxes).

Flexi Facility Charge

Term Loan – Not applicable

Flexi Loans –Up To Rs 1,999 To Up To Rs 18,999/- (Inclusive Of Applicable Taxes)

Will be deducted upfront from loan amount.

Bounce charges

Rs. 700 to Rs. 1,200/- per bounce

“Bounce charges” shall mean charges for (i) dishonor of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonor of payment mandate or non-registration of the payment mandate or any other reason.

Part-prepayment charges

Full Pre-payment:

  • Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment

  • Flexi Term (Dropline) Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

  • Flexi Hybrid Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

Part Pre-payment

  • Up to 4.72% (Inclusive of applicable taxes) of the principal amount of Loan prepaid on the date of such part Pre-Payment.

  • Not Applicable for Flexi Term (Dropline) Loan and Flexi Hybrid Term Loan.

Penal charge

Delay in payment of instalment(s) shall attract Penal Charge at the rate of up to 36% per annum 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 (Dropline) Loan:

Up to 0.295% (Inclusive of applicable taxes) of the Dropline limit (as per the repayment schedule) on the date of levy of such charges.


Flexi Hybrid Term Loan:

Up to 0.472% (Inclusive Of Applicable Taxes) Of The Dropline Limit During Initial Tenure. Up to 0.295% (Inclusive Of Applicable Taxes) Of Dropline Limit During Subsequent Tenure

Credit guarantee scheme feeUp to 1.18% p.a. (pro-rated daily till 31st March) (inclusive of all applicable taxes) of the loan amount
Credit guarantee scheme renewal feeUp to 1.18% p.a. (inclusive of all applicable taxes) on the outstanding loan amount as on April 01 of the subsequent Financial Year.
*Renewal Fee to be collected only for 3 subsequent financial years.
 
**If the Remaining Tenure is less than 12 months, the CG Fee in subsequent years shall be charged prorated.

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Frequently asked questions

Overview

How long does it take to get a personal loan?

With a Bajaj Finance Personal Loan, funds can be disbursed within 24 hours*, subject to approval. You can check your offer using your mobile number and OTP and complete the application online.

*Terms and conditions apply.

A personal loan provides quick access to funds without requiring collateral. Loan amounts range from Rs. 40,000 to Rs. 55 lakh, with flexible repayment tenure from 12 months to 108 months and minimal documentation.

Most lenders require proof of stable income for approval. Salaried or self-employed individuals with a regular income and a good CIBIL score are more likely to qualify.

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Disclaimer

Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.
For customer support, call Personal Loan IVR: 7757 000 000