Latest Bajaj Finance personal loan interest rates and 6 key factors that influence borrowing cost for customers
The total cost of borrowing is substantially influenced by the interest rate on a personal loan. It is essential to have a thorough understanding of this rate before seeking a loan. The overall cost of borrowing is heavily influenced by the interest rate, as it dictates the additional amount paid in interest on the borrowed sum. A higher interest rate prolongs the loan repayment duration, and conversely, a lower interest rate shortens it. This is due to a higher interest rate leading to a larger share of the monthly payment being allocated to interest rather than reducing the principal amount. As a result, it takes an extended period to reach the point where both the principal and accumulated interest are fully paid off.
While personal loan interest rates can differ, Bajaj Finance offers the opportunity to obtain a personal loan with an 11% interest rate, allowing borrowers to access up to ₹40 lakh. Its interest rates range from 11% to 38%, with the specific rate being influenced by factors such as the loan amount, the borrower’s creditworthiness, loan tenure, and the type of employment.
Borrowers’ details
Interest rates
(in %)
For Salaried applicants
11% p.a. onwards
For Self-employed Professionals
15%-25% p.a
For Chartered Accountants
11%-18% p.a.
It is uncommon for a lender to withhold information about the factors influencing personal loan interest rates, as most, including both banks and NBFCs, typically take these factors into significant consideration. Although Bajaj Finserv may not explicitly detail the precise impact of each factor, grasping the fundamental principles and comprehending how it determines personal loan interest rates based on various factors remains valuable. Here are some key factors that
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