You can rely on Bajaj Finserv to offer you the best personal loan offers. With a 13% onwards per annum rate, this reputed NBFC offers the best personal loans to individuals at an attractive interest rate, which guarantees to meet the multiple needs of every individual. Need more information on personal loan rates in India? Keep reading.
What is a personal loan?
Banks offer unsecured loans to individuals who do not have any collateral or security based on their income, employer, and credit score. An emergency loan is a great way to get instant cash for various reasons, such as education, medical expenses, and weddings, and has no restrictions on its use. Before applying for one, it helps to stay updated on the personal loan rates in India.
What is your Bajaj Finserv EMI?
Every Bajaj Finserv Personal Loan charges an EMI, which is a set amount that you pay to Bajaj Finserv each month. The amount, tenor, and interest rate of your loan determine how much your EMI is. You must pay the loan back on a fixed date every month until fully repaid. Bajaj Finserv’s website offers you the ability to calculate your EMI by using the online calculator tool so that you can plan your loan payments and further expenses ahead of time. Using mathematical algorithms, the calculator calculates results quickly and accurately.
Difference between flat and reducing interest rate
Flat interest rate
You can get a flat interest rate on the entire loan amount for the entire term of the loan. So, you end up having a nominal rate of interest that is higher than the actual interest rate you are charged when you begin your loan program. A flat rate of interest is calculated as:
Instalment interest= (Original loan amount* tenor* interest rate per annum)/ Number of instalments
- Flat interest rates are usually calculated on vehicle/car loans
- Interest is paid on the entire loan amount
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The interest rate does not decrease, even if your principal amount does.
Reducing interest rates
Also known as the diminishing rate, this interest rate is calculated every month against the loan principal. In other words, your total EMI amount includes the interest along with the principal repayment. In this system, your outstanding loan amount reduces with each EMI payment you make and the upcoming EMIs are then recalculated based on the outstanding amount as it reduces. Reducing interest rates are calculated as:
Instalment interest= interest rate for each instalment * remainder loan amount
- Reducing interest rates are calculated on overdraft facility, housing/mortgage/property loans, credit cards
- Interest is paid only on the outstanding loan amount
- Quoted interest rates are similar to interest rates calculated for savings accounts and fixed deposits
Bajaj Finserv interest rates
The interest rate on personal loans stands at an attractive 13%, which will keep you hassle-free throughout the loan process. With an attractive interest rate starting from 13% per annum, this NBFC offers the best loan options for individuals, meeting all of their needs.
- Low-Interest Rates on Personal Loans at Bajaj Finserv – 13%
- EMIs that are pocket-friendly and offer attractive interest rates
Is there a processing fee?
Bajaj Finserv can charge a processing fee of up to 4% depending on the personal loan amount you are applying for. Additionally, the fee is based on factors such as your eligibility, taxes, and loan amount. You must include a fee of 2% plus taxes on your part payment amount when making any part payment. Using a Flexi loan feature is not subject to part payment fees.
What other factors can affect my interest rate?
When you have a CIBIL score of at least 750, you have a good financial record and qualify for lower interest rates. Salaried individuals may receive different interest rates than self-employed individuals due to the nature of their income. Also, salaried individuals are viewed as being less risky.
As lenders are assured of regular repayment, higher incomes result in lower interest rates. When your debt-to-income ratio is low, you are less likely to default since you will be able to pay your EMIs with more funds, which can impact your interest rates. In addition, younger applicants may qualify for cheaper rates than those nearing retirement as they have more earnings years ahead.
Are there other loan charges?
When your EMI payment is late, you are charged a bounce rate. Among Bajaj Finserv’s fees, the company charges between Rs 600-and 1200 for each bounce. Defaults on EMI payments or late payments will result in a penal interest. If you’re not sure what you owe, use our online calculator tool to find the difference between flat and reducing interest rates.
Term loans, which come with 4% foreclosure fees and taxes, have to be accounted for when foreclosing. 4% of the total withdrawal amount and taxes and a cess are applied to Flexi Term Loans or Flexi Hybrid Loans.
Loan balance transfer rates
Switch to Bajaj Finserv if you do not like the interest rates on your personal loan offered by your current lender. It is indeed possible to enjoy hassle-free life thanks to attractive loan rates, as well as pocket-friendly EMIs. Bajaj Finserv offers you easy pay EMI’s that won’t burn a hole in your pocket and will minimize your obligation.