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 Fee||Effective Interest Rate||Monthly Payment||Total Cost|
|1||3.99%||12.99%||Rs. 89,313||Rs. 1,11,651|
|2||3.99%||12.99%||Rs. 47,537||Rs. 1,80,791|
|3||3.99%||12.99%||Rs. 33,689||Rs. 2,52,709|
|4||3.99%||12.99%||Rs. 26,823||Rs. 3,27,382|
|5||3.99%||12.99%||Rs. 22,748||Rs. 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
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 Requirement||City of Residence|
|Rs. 35,000||Bangalore, Delhi, Pune, Mumbai, Hyderabad, Chennai, Coimbatore, Ghaziabad, Noida, Thane|
|Rs. 30,000||Ahmedabad, Kolkata|
|Rs. 28,000||Jaipur, Chandigarh, Nagpur, Surat, Cochin|
|Rs. 25,000||All 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 Fee||Up to 3.99% of loan principal|
|Early Payment Fee||2% on part-payment amount paid + applicable taxes|
|Late Payment Fee||Rs. 200|
|Late Payment Interest||2% per month + applicable taxes|
|Bounce Cheque Fee||Rs. 600 to Rs. 1,200|
|Loan Statement Fee||Rs. 65 + applicable taxes|
|Secure Fee (online application)||Rs. 4,499|
|Outstation Collection Fee||Rs. 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