Bajaj Finserv Personal Loan Interest Rates

Credit score

Most banks/NBFCs consider the credit scores of their loan applicants when fixing their interest rates. Applicants with higher credit scores (preferably, 750 and above) are more likely to get personal loans at lower interest rates compared to those applicants with lower credit scores. Avoiding loans or multiple credit card applications within a short period, timely repaying EMIs and credit card bills, and maintaining a minimum credit utilization ratio helps to maintain higher credit scores and thereby improving your personal loan eligibility.

Moreover, errors in the credit report can also negatively impact the credit score, which is why it is important to keep track of credit reports at regular intervals, identify such errors and take necessary actions.

Income

Many lenders offer low-interest rates to personal loan applicants with higher incomes. This is because the higher the income, the higher the ability to repay the loan, which lowers the risk of default.

Employer

Most lenders also give preference to the employer profile of their loan applicants when setting their interest rates. Banks/NBFCs usually offer personal loans to salaried applicants at lower interest rates than those set for personal loans offered to self-employed applicants. Salaried applicants of PSUs and the government are also offered lower personal loan interest rates, considering their income security and higher job security. The applicants working in reputed private sector organisations and MNCs are also offered lower interest rates, as such organisations have a higher capacity of tackling economic downturns compared to the personal loan applicants employed in other private sector organisations.

Existing relationship with the lender

Many banks/NBFCs offer personal loans at concessional interest rates to applicants having existing lending or deposit accounts with them. Hence, those planning to avail personal loans should always contact the lender with whom they already have an existing lending or banking relationship to avail personal loan at lower interest rates.