Bajaj Finserv Personal Loan Review: Interest Rate, Eligibility

Bajaj Finserv Personal Loan Review: Interest Rate, Eligibility

Bajaj Finserv does not offer the cheapest personal loans in India, but may be worth considering as a backup option.

Good for

  • Salaried individuals seeking a backup personal loan option
  • Loan applicants seeking quick cash disbursement

Bad for

  • Prospective borrowers seeking a personal loan of more than Rs. 25 lakh
  • Individuals seeking a personal loan with a tenure of less than 12 months

Editor's Rating


Individuals that are unable to obtain a personal loan from other lenders may want to consider Bajaj Finserv. While Bajaj's interest rates (starting at 12.99%) and processing fees (up to 3.99%) are not the lowest available in India, the bank does provide loan application decisions within 5 minutes and makes cash available within 1 day.

Summary of Bajaj Finserv's Personal Loans
Interest Rates: from 12.99%
Fast Cash Disbursement: 1 day
Tenure: 1 to 5 years
Repayment Flexibility with Bajaj Finserv Flexi Personal Loan

Table of Contents

What Makes Bajaj Finserv Personal Loans Stand Out to Borrowers

Bajaj Finserv's personal loans are not the cheapest available in Singapore. This is due to the lender's high interest rates (12.99% and up) and processing fee (up to 3.99%). For example, we estimate that borrowers may save hundreds of rupees on their monthly payment and tens of thousands of rupees throughout the entire tenure of their loan by choosing to borrow from lenders with more competitive rates.

Estimated Cost of Bajaj Finserv Personal Term Loan

Duration (Years)Processing FeeEffective Interest RateMonthly PaymentTotal Cost
13.99%12.99%Rs. 89,313Rs. 1,11,651
23.99%12.99%Rs. 47,537Rs. 1,80,791
33.99%12.99%Rs. 33,689Rs. 2,52,709
43.99%12.99%Rs. 26,823Rs. 3,27,382
53.99%12.99%Rs. 22,748Rs. 4,04,777
*Assuming loan of Rs. 10 lakh, total cost includes processing fee

With that said, Bajaj might be a good backup option, if you are not able obtain a loan from another lender. This is especially true if you are offered one of the Bajaj's lower interest rates. Also, Bajaj Finserv offers quick application decisions (with 5 minutes) and disburses cash within one day, which is particularly helpful for borrowers that require funds immediately. Bajaj also offers a Bajaj Finserv Flexi Personal Loan which allows borrowers to draw from their loan amount when needed, similar to a credit card, and only pay interest on the amount outstanding. This loan also allows early repayments which can help borrowers reduce their total cost of borrowing by reducing the amount of accrued debt.

Who Can Apply: Eligibility Criteria

Consider this if are unable to obtain a loan from another lender

Required Monthly Income Rs. 25,000 to Rs. 36,000
Max. Loan Amount Rs. 25 lakh
Processing Fee up to 4.13%
Loan Tenure 12 to 60 months

Only citizens residing in India are eligible for Bajaj Finserv's personal loans. Additionally, applicants must be between 23 and 58 years old. Finally, applicants must be salaried employees in order to qualify for loans from the lender. These individuals must earn RS. 25,000 to Rs. 35,000 per month working for a private or public company. For this reason, Bajaj Finserv is not suitable for self-employed individuals or those with very low annual incomes.

Monthly Income RequirementCity of Residence
Rs. 35,000Bangalore, Delhi, Pune, Mumbai, Hyderabad, Chennai, Coimbatore, Ghaziabad, Noida, Thane
Rs. 30,000Ahmedabad, Kolkata
Rs. 28,000Jaipur, Chandigarh, Nagpur, Surat, Cochin
Rs. 25,000All other cities

Other Charges and Fees

There are a number of standard fees associated with Bajaj Finserv's personal loans. Most notably, the bank charges a processing fee of up to 3.99% of the loan amount. While it is not clear what fee rate a typical borrower will be charged, Bajaj's fees appear to be significantly higher than other lenders in India, which typically charge 2% to 2.5%. We strongly suggest that borrowers carefully avoid other charges by following their payment plan in order to reduce the total cost of their loan.

Processing FeeUp to 3.99% of loan principal
Early Payment Fee2% on part-payment amount paid + applicable taxes
Late Payment FeeRs. 200
Late Payment Interest2% per month + applicable taxes
Bounce Cheque FeeRs. 600 to Rs. 1,200
Loan Statement FeeRs. 65 + applicable taxes
Secure Fee (online application)Rs. 4,499
Outstation Collection FeeRs. 65 + applicable taxes

How to Apply: Application Process

In order to apply for Bajaj's personal loans, individuals must complete an online application form. Additionally, applicants must submit a handful of required documents that provide proof of their identity, address, income and employment. The bank provides loan application decisions within 5 minutes and disburses cash within 24 hours.

Required Documents for Bajaj Personal Loan Application

  • KYC Document
  • Employee ID Card
  • Salary Slips (last 2 months)
  • Bank Statements (last 3 months)
  • Driver's License, Mobile Bill or Ration Card
William Hofmann

William is a Product Manager at ValueChampion, focusing on banking and SMEs. He previously was an Economic Consultant at Industrial Economics Inc.