Bajaj Finserv Personal Loan: Is It Better Than Bank Loans? - Financial Marketplace

When looking for a personal loan, choosing between a bank and a Non-Banking Financial Company (NBFC) like Bajaj Finserv can be confusing. While banks are known for their reliability, NBFCs often provide faster and more flexible loan options. Let’s compare Bajaj Finserv personal loans with traditional bank loans to determine which one suits your needs better.

Table of Contents

1. Loan Eligibility & Approval Process

Bajaj Finserv: Offers a hassle-free approval process with minimal documentation. Salaried and self-employed individuals can apply, and pre-approved loan offers are available for existing customers.

Banks: Typically have stricter eligibility criteria. Banks often require a higher credit score and more extensive paperwork, making approval slower than Bajaj Finserv.

2. Interest Rates & Charges

Bajaj Finserv: Interest rates range from 10% to 31% per annum, depending on the borrower’s profile. Processing fees may go up to 3.99% of the loan amount.

Banks: Generally offer lower interest rates, starting from 10% to 24% per annum. However, processing fees are lower compared to NBFCs, typically between 1% to 2%.

Here’s a comparison table for Bajaj Finserv Personal Loan vs. Bank Loans:

Feature	Bajaj Finserv	Traditional Banks
Interest Rate	11% – 36% p.a.	10% – 24% p.a.
Loan Amount	Up to ₹55 Lakhs	Up to 1 Crore
Loan Tenure	12 to 96 months	12 to 84 months
Processing Fee	Up to 3.99% of loan amount	1% – 2% of loan amount
Approval Speed	Instant approval, disbursal in 24 hours	2 to 7 days for processing
CIBIL Score Requirement	685+	700 – 750+
Flexibility	Flexi Loan Facility available (pay interest only on withdrawn amount)	Fixed EMI structure
Eligibility Required	More relaxed eligibility criteria	Stricter eligibility, higher income
Customer Support	24×7 digital support	Limited to banking hours

Note: If you’re looking for ways to improve your CIBIL score, explore this article for 10 effective strategies to boost your credit score quickly.

3. Loan Amount & Tenure

Bajaj Finserv: Offers personal loans up to ₹55 lakhs with flexible repayment tenure ranging from 12 to 96 months.

Banks: Loan amounts depend on the bank, but most major banks provide loans up to 1 crore with tenures from 12 to 84 months.

4. Speed of Disbursal

Bajaj Finserv: Provides instant loan approval with disbursal within 24 hours, making it ideal for urgent financial needs.

Banks: Typically take 2 to 7 days for loan disbursal due to a longer verification process.

5. Flexibility & Customer Benefits

Bajaj Finserv: Offers a Flexi Loan Facility, where borrowers can withdraw funds as needed and pay interest only on the amount used.

Banks: Do not offer such a facility in most cases, requiring borrowers to take the full loan amount upfront.

6. CIBIL Score Requirement

Bajaj Finserv: Approves loans for customers with a CIBIL score of 685 and above, making it accessible to more borrowers.

Banks: Usually require a higher CIBIL score of 700-750+ for better interest rates and approval.

7. Customer Service & Online Application

Bajaj Finserv: Provides a fully digital loan application process with 24×7 customer support.

Banks: While most banks offer online applications, some still require branch visits for verification.

Which One Should You Choose?

Choose Bajaj Finserv if you need quick disbursal, flexible repayment options, and easier eligibility.
Choose a Bank Loan if you prefer lower interest rates and long-term financial stability.

Frequently Asked Questions (FAQs) – Bajaj Finserv Personal Loan: Is It Better Than Bank Loans?

1. What is the current interest rate for Bajaj Finserv Personal Loans?

As of March 2025, Bajaj Finserv personal loan interest rates range from 10% to 31% per annum, depending on the applicant’s credit score, income, and repayment history.

2. How long does it take to get a Bajaj Finserv personal loan approved?

Bajaj Finserv offers instant approval for eligible customers, and loan disbursal can happen within 24 hours. Pre-approved customers may receive funds in just a few minutes.

3. Does Bajaj Finserv offer a lower interest rate than banks?

Not always. Banks typically offer lower interest rates (starting from 9.75%), while Bajaj Finserv’s rates start from 10% and can go up to 31% depending on creditworthiness.

4. What is the Flexi Loan facility in Bajaj Finserv?

Bajaj Finserv provides a Flexi Loan Facility, where borrowers can withdraw money as needed and pay interest only on the amount used, unlike banks that provide a fixed loan amount with fixed EMIs.

5. Can I prepay my Bajaj Finserv personal loan?

Yes, you can prepay your loan, but prepayment charges range from 2% to 4% of the outstanding amount. Banks usually have lower or no prepayment fees.

6. Is Bajaj Finserv safe and reliable for personal loans?

Yes, Bajaj Finserv is a well-established NBFC regulated by the RBI and offers secure personal loan options. However, always compare with banks to check for better interest rates and terms.

Final Verdict

Bajaj Finserv personal loans are better suited for individuals seeking quick funds with flexible repayment options, while banks are ideal for those looking for lower interest rates and structured repayment plans. Your choice should depend on urgency, credit score, and long-term financial goals.

You can compare below with other personal loan lenders

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