What is the Interest Rate for Bajaj Finserv Personal Loan

Bajaj Finance Limited levies a nominal interest rate on personal loans, ranging from 10% to 31% p.a. Whilst this is the primary charge applicable on your personal loan, you may have to bear other charges such as processing fees, EMI bounce charges, penal interest (in case you delay EMI payments), and document/statement charges. 

✅  Check your pre-approved loan offer with phone number and OTP → Know the interest rate applicable to you → Apply online in 5 minutes 

Understanding personal loan interest rates and how they're calculated helps you make informed borrowing decisions. This comprehensive guide explains the interest structure at Bajaj Finance, the factors affecting your rates, and how to calculate interest on your loan.

Bajaj Finance offers competitive personal loan interest rates that vary based on your credit profile, income, employment stability, and other eligibility factors - ranging from 10% to 31% p.a. The rate you receive will be tailored to your individual financial situation.

Pro tip: Your actual interest rate depends on your creditworthiness and financial profile. The better your credit score and financial health, the lower the interest rate you'll qualify for. Always check your current rates before applying.

Here are some of the factors impacting your personal loan interest rate:

A personal loan has two components: the principal, which is the borrowed amount, and the interest, which is the cost of borrowing. Interest is a percentage of the amount borrowed. Since you can get a personal loan without pledging an asset as security, the interest rate for a personal loan is slightly higher than that of other secured loans.

• Principal: The original amount you borrow.
• Interest: The cost of borrowing expressed as a percentage per annum (p.a.). This is charged on the outstanding balance.

Each EMI (Equated Monthly Instalment) that you pay comprises a principal portion and an interest portion. As the current personal loan interest rate is fixed, your EMI depends on the loan repayment tenure, ranging from 12 months to 96 months for a Bajaj Finserv Personal Loan.

Pro tip: Use our personal loan EMI calculator to easily calculate the exact interest amount. Also, use it to view the total interest you will have to pay based on your loan amount, interest rate, and tenure.

• Credit Score: A higher credit score often leads to lower interest rates. It is advised to check your credit score before taking a personal loan. Scores of 750+ typically qualify for the best rates.
• Income Level: Lenders consider your income to gauge repayment capacity. Higher and more stable income can result in better interest rates.
• Debt-to-Income Ratio: A lower ratio signals better financial health and can result in lower rates. Lenders prefer borrowers with fewer existing liabilities relative to their income.
• Loan Amount and Tenure: Larger loans or longer tenures may attract higher rates due to increased risk. However, longer tenures reduce monthly EMIs, making loans more manageable.
• Employment Stability: Stable employment history enhances trust, potentially reducing rates. Continuous employment with the same employer for 2+ years is viewed favourably.
• Relationship with the Lender: Existing relationships with Bajaj Finance (e.g., having a savings account) may lead to preferential rates and quicker approvals.
• Market Conditions: Economic factors and central bank policies can influence overall interest rate trends. RBI rate changes impact lending rates across the industry.

How to get the best interest rate

1. Check your credit score: Before applying, check your CIBIL score and work to improve it if needed
2. Reduce existing debt: Pay off high-interest debts to improve your debt-to-income ratio
3. Show income stability: Maintain consistent employment and demonstrate salary growth
4. Compare offers: Use the pre-approval feature to see your personalised rate
5. Negotiate: If you have a strong profile, negotiate with the lender for better rates
6. Choose appropriate tenure: Shorter tenures typically attract lower rates, though EMIs are higher
7. Apply with a co-applicant: A strong co-applicant can help you qualify for lower rates