Bajaj Finance Personal Loan
We will see how we can apply for a personal loan from Bajaj while sitting at home. Okay, but first, the most important things are: what interest rate Bajaj Finance Personal Loan charges, how much processing fee it charges, and one of the most important things is that when Bajaj gives a personal loan, they also try a lot to attach insurance along with it. So what are all these things? What does Bajaj actually say? Look, the process is of 5 minutes. We will see that in 5 minutes. But what I am telling you first is very important.
Look, this is Bajaj’s official website. I am not saying this. Here they write that the interest rate for their personal loan starts from 10%. Fine. Now what do you think, will this loan application really give us a personal loan at 10% interest rate? Understand this—today if I apply for a personal loan from SBI and even if my CIBIL score is very good, still SBI will charge me around 12%–13% for a personal loan. If SBI is charging 12%–13%, then will they give it at 10%? That is absolutely not the case.
What is Processing Fee?
Suppose you take a loan of ₹1 lakh. Now assume Bajaj says that there will be a 2% processing fee, which is also called a file charge. So 2% of ₹1 lakh becomes ₹2,000. So ₹2,000 will be charged as a fee. That means only ₹98,000 will be credited to your account. But the loan on your head will be ₹1 lakh, and if they give it at, say, 20% interest, then the EMIs you have to pay will be calculated at 20% interest.
In banks, generally the processing fee is around 1%. In Bajaj, it is said to be around 3.5% or up to a maximum of 3.93%. So it is said that Bajaj usually charges around 3.5% processing fee, no matter what they show here—Bajaj will charge this.
Do you know what the issue with Bajaj is?
When you apply for the process, which I will show you now, initially at the start it will say that the interest rate is 11% and it will show a processing fee of ₹100–₹150. But on the last page, when the entire process is completed, it will show an interface like this. After the whole process is done, it will show “Application Submitted Successfully” and it will say “Our representative will call you.”
It’s not like some other applications that show everything on the last page—where it says loan approved and the money gets credited to your account. Bajaj does this in every case. Even if your CIBIL score is 800, it will still show that “Our representative will call you.”
I am telling you the complete truth. Then when a Bajaj employee calls you, do you know what they say? They will say, “No sir, you won’t get the loan at 11%. Your CIBIL score is a bit low,” or they will find some excuse and say that your loan will be at 20%–25%. And if someone’s CIBIL score is poor, they may even say the loan will be at 30%. Understood the point?
Bajaj Finance Personal Loan Processing Fee Charged
Secondly, they will also charge a higher processing fee. They will say the processing fee is 2.5%, and the remaining 1.5% will be charged as insurance. For example, if you are taking a loan of ₹1 lakh, then 1.5% of it will be taken as term insurance, meaning they will do your life insurance along with the loan.
If you say that you don’t want life insurance, they will say, “No sir, it is mandatory, otherwise your loan will be rejected.” At that time, you need to handle the conversation because nothing like this is mandatory. It is not necessary that you must take it. You can clearly say that you don’t want it.
Also, try to negotiate the rate of interest. Whatever interest rate they quote—for example, if the Bajaj representative says it is 20%—you should say, “No, that’s too high. If you can offer around 16%, then proceed, otherwise I’m not interested.”
So these are all the things you need to keep in mind. One more important thing is that Bajaj generally offers three types of loans, which creates a lot of confusion.
Bajaj Finance Personal Loan - three types of loans
For example, if I enter ₹1 lakh as the loan amount, it will show three types of loans: Flexi Term, Flexi Hybrid, and Term Loan. You should simply choose the Term Loan. Just go ahead and click on it without confusion. As I told you, we should choose a Term Loan. So let’s keep 84 months aside and select a shorter duration. I’ll select 24 months here and choose the Term Loan. That means I want to take a loan of ₹1 lakh for just 2 years. Now the EMI is being shown based on 11% interest, but I have already explained everything clearly to you.
After this, a Bajaj representative calls you, and that’s where the final interest rate, processing fee, and other terms are decided. During this call, they also offer insurance and other products, so listen carefully and refuse if not needed. Insurance is not mandatory.
The most important thing is to gather complete information before taking a loan. If the interest rate is more than 25% or the processing fee is more than 2.5%, then avoid taking the loan. And most importantly—don’t take a loan just to fulfill desires. Take a loan only if it is truly necessary or for an important purpose. Otherwise, you can easily fall into a debt trap.
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