6 Things to remember for first time home buyer

Are you buying a house for the first time? Are you considering taking a home loan? If the answer to all the above questions is “Yes”, here are a few tips which can help you get a home loan with ease.

  1. Application Procedure- Ensure that Identity and financial documents are updated and ready.
  2. Interest Rates- Do your homework and choose between fixed and floating interest rates for your home loan. Fixed Rate loans remain constant in spite of market fluctuations while floating rate loans are subject to changes based on market conditions.
  3. Credit Score- Ensure that your credit score is good enough to get your loan approved.
  4. Overall Debts- Try and clear your outstanding debts as much as possible before applying for a home loan.
  5. Finance- Check whether the down payment on the home loan is within your means or not.
  6. Approval- Check with your lender regarding the legal status of the property that you are planning to buy.

You can opt for a Bajaj Finserv Home Loan which comes with several advantages including approval within 5 minutes and disbursal within 72 hours after verification, 3 EMI Holiday, top-up loans and low interest rates.

Documents required for Home Loan

Documents required for Home Loan

Planning to buy a house? Taking a home loan may seem intimidating for many buyers on account of the documentation that is involved in the process. Many first time homebuyers may not be fully informed about the documents required for home loans.

Following are the documents for home loan that you need to submit:

  • Application Form
  • Address Proof
  • Identity Proof
  • Photograph
  • Form 16/Salary Slip
  • Bank Account Statements

If you tick all the boxes when it comes to home loan eligibility (you can check the amount you are eligible for with a home loan eligibility calculator) and submit all these documents, your home loan will be processed smoothly minus any hassles. Taking a home loan from Bajaj Finserv gives you access to several benefits including low interest rates, loan approvals within 5 minutes, fund disbursal within 72 hours, availability of top-up loans and a 3 EMI Holiday.

Home Improvement Tips

Home improvement tips

Want to make your home truly extraordinary? Why compromise for lack of funds? Upgrade your home with the help of a Bajaj Finserv Personal loan and make your dream home a reality.

Personal Loan for Home Improvement

Personal Loan for Home Improvement

Your home is the apple of your eye. Don’t let shortage of funds stop you from taking care of it the right way. Avail a Bajaj Finserv Personal Loan up to Rs. 25 lakhs for easy financing of all your home renovation expenses.

A step-by-step guide to breaking your FD before maturity

A Step-by-step Guide to Breaking Your FD Before Maturity

Rishika Mantri was facing a financial crisis. Her mother met with an accident in Jaipur and was in the hospital. Rishika had to pay the hospital bills. She did not have much in her savings account. She had a fixed deposit (FD) to her name, which could cover the costs. But the deposit still had one year to maturity. Rishika was thinking of breaking it. But she did not know how to go about it. What was she to do?

Breaking an FD is easy if you know the procedure.

Here is a step-by-step guide to help you out:

Step 1: Make a request to break the FD

The first step is intimating the financial institution. Banks, companies, and non-banking finance companies (NBFCs) offer FDs. It does not matter where you have your FD. Start by letting the financial institution know that you wish to break your FD.

Step 2: Break the FD online or offline

Do you want to break the FD offline? Then you have to fill in a request form and submit it to the issuing institution. The institution will process your request and credit the funds. What if you choose the online medium to break your FD? You can do so using your bank’s net banking facilities. This process is the same for FDs with companies or NBFCs. Log into your account and make a request. You will then have to fill and submit an online request form.

Step 3: Understand the interest calculations

When you break your FD before maturity, it is a premature withdrawal. Such a withdrawal results in a lower interest rate. Here, the financial institution calculates the interest in a different way. It considers the number of days for which you held the deposit. It then applies the rate of interest applicable for such a tenor. For instance, suppose a two-year deposit has an interest rate of 7%. Meanwhile, a three-year FD has an interest rate of 8% . Say, you have a three-year FD. It should earn interest at the rate of 9%. But you need to break the FD after two years. Then you will earn interest at the rate of 8% instead.

Step 4: Pay the penalty

Financial institutions levy a penalty charge in the case of premature withdrawal. This penalty fee may be between 0.5% and 1%  of the deposit amount depending on the banks or NBFC’s.

Points to remember

  • Banks and NBFCs now offer FDs that have no premature withdrawal penalty. So, you can break your FDs before maturity without paying a penalty. Find out if your FD has this feature.
  • Rather than break the FD before maturity, you can take a loan against your FD. Banks and NBFCs allow loans against securities. You can pledge your FD for a loan against its value. This way, you avoid paying penalties on premature withdrawals. You also continue to earn at a higher FD interest rate.

Rishika now understood the steps involved in breaking her FD. She followed the steps and availed the funds needed for her mother’s treatment. You too can use this option without much hassle in an emergency.

8% and 9% seem rather high given current FD rates.

Know More FD Interest Rate

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How Businesses Can Use GST To Manage Working Capital

Every business requires working capital to thrive and flourish. Working capital is calculated as the difference between current assets and current liabilities. It will indicate if the company is equipped to handle short-term costs, such as salaries, inventory, and invoices.

Current assets refer to cash, stock, market securities, mutual funds that can be converted into cash within a reasonable period of time. Current liabilities refer to borrowings, supplier payments, and debts that the company owes during its operating period. While companies will have assets and liabilities, the assets must outweigh their liabilities, so that their working capital is positive. A positive working capital is a sign of a company’s success and will benefit them in several ways.

Goods and Service Tax

Goods and Service Tax (GST) is a tax will be implemented on July 1, 2017 and levied on the manufacturing and service sector. The GST will unify goods and services in a single bill and will do away with the confusing multiple taxation systems, such as VAT, Octroi, Infra Cess and service tax. The GST will be divided into Central Goods and Service Tax (CGST), State Goods and Service Tax (SGST), Integrated Goods and Service Tax (IGST) and Union Territory Goods and Service Tax (UTGST).

Also Read : Is Your Business GST Ready?

Importance of working capital

Working capital is very important for small and large companies and is a crucial factor in their success. It helps companies to stay in operation by allowing them to stock up on inventory and pay suppliers and other debts on time. Paying employees their salaries, logistics and other operational expenses will also come from this account.

At some point in time, companies will require large loans to finance a project. Usually, these loans are required for a short-term basis and have a definitive reason why they are availed. Banks and other financial institutions will determine whether a loan can be sanctioned, based on the working capital of the company to ensure that it can repay the loan. If a company has more liabilities than assets, then it will be burdensome on them to repay the loan. This would make it difficult for them to avail loans as well.

The financial aim of every company is to make profits or to breakeven in the starting years. The working capital of a company is what determines if they are making a profit or a loss. In larger companies, their stock price in the market will be affected if they do not have adequate capital.

Benefits of working capital

The working capital of a company determines how well-managed the company is. A positive working capital can allow companies to expand their business, acquire new customers, buy more inventories and invest in new products or services.

At the same time, if the working capital is very high, then it shows that the company takes very fewer risks and is not utilizing opportunities that allow them to grow. A negative working capital means that the company is struggling to stay afloat.

How will GST affect working capital?

While the GST eliminates multiple taxations such as excise duty, VAT, and service tax, it will increase the current tax rate that is being levied on goods and services. GST will need to be paid monthly as opposed to the quarterly payments that are made in the current system. Due to the increase in taxation rate, the working capital might increase, which will force companies to reconsider their operational costs. They might have to rethink their business models, such as the price of the product or service, their profits, and other financial aspects. It will take companies’ time to adapt to this new model and start functioning efficiently.

Also Read: What is a Working Capital Term Loan?

GST makes tax compliances easier, as goods and services are merged and there will be no distinction between the two. If the cost of manufacturing a good and the cost of providing a service are similar, then it will attract the same taxation rate.

As taxation varies from state to state currently, companies often choose warehouses for their inventory based on tax restrictions. GST will enforce ‘One Nation, One Tax’, hence giving companies the freedom to select their warehouse based on customer location. The transportation and logistics costs will also reduce, as tolls and inter-state taxes will be abolished in this system. This will greatly reduce operational costs and will greatly benefit companies.

Closing note

GST will affect a company’s working capital in both positive and negative ways. It may take months for a company to adapt to the new rules and to set up a new model that will optimise their business. Vendor procurement rates might change and the taxation rate will increase to 18%, but it is still absolutely possible for companies to make profits by revising their operational expenses and the pricing of the goods and services offered.

Apply for Business Loan Calculate Your Monthly EMI

Runnning out of money? Here’s how FDs can help

Runnning Out of Money? Here’s How FDs Can Help

Rajiv had lost his job a couple of months back due to downsizing at his firm. While he was trying to find a decent job, his wife’s back ache started acting up again. His wife had to be admitted to the hospital and she needed a surgery. In the past couple of months, Rajiv had used his emergency portion. He needed more money for the treatment. Unfortunately, all his investments were locked up for a few months. This put him in a real fix and left him without many options. He decided to break his fixed deposit (FD) and use the money. However, his friend advised him to instead choose a loan against his FDs. He took a loan against FD, paid for the surgery, found a job and repaid the loan soon enough.

Emergencies come unannounced in life. It could be business-related or could be a medical emergency as in Rajiv’s case. Let’s look at the features of loans against FDs:

What is Loan against FD

Whenever there is an emergency, you may not always have the required funds to tackle it. However, instead of prematurely breaking your FD, you could opt for a loan against the FD. Lots of banks and financial institutions offer loans against FDs to borrowers.

How’s it deployed

The lender offers the loan in the form of an overdraft. The loan amount offered can vary between different lenders. Typically, the loan amount is in the range of 70%–90% of your FD amount. It is even possible to avail a higher amount. However, this depends on your credit history and lender’s discretion.

The loan process

Say you have a fixed deposit of Rs. 2 lakh for three years with a financial institution. The FD earns a 9% rate of interest. Now you have an urgent short-term requirement of Rs. 10,000 for a month. The lender offers you the loan at an interest rate of 11%.

At the end of the month, you repay the amount with the interest. Thus, your FD remains intact while you addressed your requirement.

Repayment of the loan

The maximum tenor for the loan is the remaining term of the FD itself. This is decided by the lender at the time of disbursal. The interest rate on the loan is typically 2-2.5% higher than the interest rate on the FD. You could have flexible repayment options on the loans.

Processing fees

Unlike a regular loan, the processing fee is waived by most lenders for loans against fixed deposits. This is beneficial for borrowers as they receive the total amount without any deductions. Additionally, many lenders, like Bajaj Finserv, do not charge any foreclosure charges too.

Advantages over a regular loan

The best advantage of this loan is its disbursal time. During emergencies, you require the funds as soon as possible. For a regular loan, you may need to wait for days, if not weeks to get the funds. However, in the case of loan against FD, the funds could be disbursed within 24 hours. Also, the interest is charged on the total amount you borrowed.


The next time you require funds for a short period, you could consider availing a loan against your FD like Rajiv. However, it is important that you use this facility carefully since the lender can forfeit your deposit in case you default on your payments.

To know more about FDs and loans against these FDs from Bajaj Finserv, click here .

Know More FD Interest Rate

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One stop Destination for all your Personal Loan Queries

Bajaj Finserv – One Stop Destination For All Your Personal Loan Queries

Personal loans are unsecured loans that come with attractive features such as instant approval, flexibility in tenor and pre-payment options, a line of credit facility, economical interest rates, eligibility and EMI calculators, and more. You can avail a personal loan for various requirements such as weddings, vacations, home renovation, debt consolidation, medical emergencies, higher studies abroad, automobile down payment, and even home down payment.

Personal loans offer the best financing options to manage your needs in a streamlined and secure manner. They provide an effective solution to your financial difficulties without compromising on any aspect of your day-to-day life.

Here are the answers to everything you need to know about personal loan, interest rates, credit score, repayment and all other queries.

Is a Personal Loan an Unsecured Loan?

Yes. Unsecured loans are those that do not require any security, collateral or guarantors to vouch for you while applying for a loan. For example, you can acquire a personal loan without having to put up your home or any other asset as security or collateral against it. Also, there is no need for anyone else to guarantee that you will repay the loan.

Also Read : Difference Between Secured and Unsecured Personal Loans

Is a Personal Loan hard to Get?

Not at all. In fact, personal loans are among the best loans to apply for in terms of ease of application and approval. And since their popularity amongst Indians is gradually increasing, financial corporations are beginning to offer a host of attractive features like a quick online application, instant online approval and disbursal of funds within 72 hours when you apply for a personal loan.

Is a Personal Loan better than a Credit Card?

Yes. This is because credit cards usually have a higher interest rate on the debt you accumulate, while personal loans have a comparatively lower interest rate. If you want to pay off your credit card debt you have a limited time to do so within incurring high interest, whereas personal loans allow you a longer repayment duration so you can repay the loan without stress. Also, personal loans give you funds in a lump sum amount, which means you have better control over your money and can use it as per your needs. Finally, one of the major advantages of personal loans over credit cards is that you can consolidate all your credit card debt into a single cumulative loan and then use the personal loan to easily pay it off, hassle-free.

Also Read : Does a Personal Loan work better than a Credit Card?

What is Line of Credit and how is it different from a Personal Loan?

The primary difference between line of credit and personal loans is that unlike a personal loan, a line of credit loan only requires you to pay interest on the amount you withdraw. While personal loans ask you to pay interest on the entire principal amount plus interest, line of credit loans ask you to pay it only on the funds you’ve used, which could be significantly lower. Another significant difference is that personal loans are disbursed all at once while line of credit loans are disbursed in parts. Depending on how you’re going to utilize your loan, it’s important to choose the more suitable option between a personal line of credit and personal loans.

What can a Personal Loan be used for?

A personal loan is among the most versatile types of loan available in the market today, which you can use as per your needs and requirements. Any of the following occasions can be a reason for you to apply for a personal loan:

  1. For a Wedding

Organising the wedding you’ve always dreamt of can be an expensive affair. You can never predict the exact amount of funds you may need for a wedding and you may face a situation where your savings aren’t enough to finance your wedding. In that case you can take Personal Loan for Your Wedding.

  1. For a Vacation or Holiday

Everyone needs a vacation to recharge their batteries and enjoy the finer aspects of life. The best way to finance your vacation is to apply for a Personal Loan for Travel.

  1. For Repairing or Renovating your Home

Your home is the one place you can relax and unwind after a hard day’s work. It is always a wise option to invest in the improvement of your home for both comfort and safety. You can apply for a Personal Loan for Home Improvements.

  1. For a Medical Emergency

Medical treatments can be a costly affair, especially if you’re looking for the best available options for yourself or for your loved ones. It’s also important to pay your medical bills in a timely manner to avoid delays in treatment. You can also take Personal Loan for Medical Emergency as well.

  1. For Higher Studies or Education Courses

Education lays the foundation for a successful and happy future. Higher studies or educational courses for yourself or your child from a reputed institute opens the doors to better opportunities. Personal Loans for Higher Studies make sure you don’t have to worry about finances.

  1. For the down Payment on your New Car

Everyone has a dream car they would like to own. But even if you can pay for the EMIs, it is usually the down payment that stops you from buying it. Personal loans are an excellent way to acquire the required funds without dipping into your savings or giving up on your other dreams.

  1. For the down Payment on your Home

Do you dream of becoming a homeowner? The thought of buying your own home often brings peace of mind to you and your family. However, good homes don’t come cheap. Personal loans ensure that lack of funds never come between you and your ideal home.

How can one apply for a Personal Loan?

Nowadays, applying for a personal loan is easier than ever. As the customer, you can choose whether you want to meet the lender in person to discuss all matters pertaining to your loan face-to-face, or you can avail the benefits of online application. Most lenders today have websites that offer you all the information you need regarding your personal loan, such as interest rates, EMIs, terms and conditions, all details related to charges and fees, etc.

You can apply for your personal loan online in 4 easy steps:

Step 1: Fill in all the details on the online form. (Click Here for Online Form : Apply Online for Personal Loan)

Step 2: Get instant approval and select your personal loan amount and repayment tenor.

Step 3: Keep all the required documents ready for collection.

Step 4: The money is credited into your account!

You can also apply for a personal loan offline. Lenders allow you to call or SMS for personal loan requests. If you are applying to Bajaj Finserv for a personal loan: You can call Bajaj Finserv at this toll-free number: 18002660635 or give a missed call on +91 9211175555. You can also send as SMS by messaging ‘SOL’ to +91 9773633633.

Should you apply for a Personal Loan online or offline?

 Both online and offline modes of applying for a personal loan come with their own set of benefits, however, most borrowers find applying online faster and more convenient.

With the online mode of application:

  • You can apply while in the comfort of your own home or on the go without taking time and effort to travel to the lender’s office
  • You can browse and compare various personal loan offers and choose the best one for you
  • You can read other customers’ reviews and testimonials
  • You also get low interest rate offers and other pre-approved offers

With the offline mode of application:

  • You have the opportunity to interact with experienced representatives and ask them your queries before making any decisions.

Ultimately, the choice depends on your preferences.

How do you check Eligibility for Personal Loans?

Personal loan eligibility is usually very simple. The only information required from you is:

  • Date of birth
  • Current city of residence
  • Company or employer name
  • Net salary
  • Combined monthly loan EMIs
  • Combined outstanding debt on credit card
  • Information on whether you have a home loan or not

That’s it! You can find out whether you’re eligible for a personal loan with just these basic details. You can directly check your eligibility with our Personal Loan Eligibility Calculator online which is much easier.

Depending on your details, it is possible to acquire a personal loan up to Rs.25 lakh!

Here’s a list of the documents required to apply for a personal loan:

  • Financials—Salary slips of the last 2 months
  • Bank statements—Salary account bank statement for the last 3 months
  • Employment proof—Employee ID card
  • KYC—Identity proof and Address proof (such as your Aadhar Card, Passport, Driving License, etc.)

For more details; click here – Required Documents for Personal Loan

What is the Rate of Interest on Personal Loans and how is it Calculated?

The interest rate on personal loans can be between anywhere between 12% to 24%. Every lender has their own way of calculating your personal loan interest rate.

It is calculated by keeping in mind your:

  • Salary and current debt
  • Credit score or credit rating
  • Employer details

Basically your interest rate depends on your credit risk, which is why borrowers who are considered ‘safe’ by a lender get a lower rate on their personal loan and borrowers who are considered risky need to pay a higher rate of interest. A steady job with a good company, a good record of paying back your earlier debt, little or no current debt, etc., are some of the ways you can ensure a lower rate of interest.

Your personal loan interest per month is calculated by dividing the interest rate by 12. For example, if your personal loan interest is 13% per annum, your monthly interest rate is: 13/12=1.08%.

Are Personal Loan Rates Negotiable?

Generally, personal loan rates are non-negotiable unless you have a very good credit score.

What is the CIBIL score required to avail a personal loan? Can you get a good interest rate with a good Credit Score?

CIBIL (credit) scores can range between 300 to 900, with anything above 750 being a good score to avail a personal loan. However, if you want a hassle-free personal loan application and approval, it is recommended to have a CIBIL score of 750 or above.

You are certain to get a cheaper personal loan with lower interest if you have a good credit score.

Can you apply for a personal loan with a bad Credit Score?

Absolutely. Some customers have bad credit scores because of different reasons, but that does not stop them from acquiring a personal loan. The only difference is that you may incur a higher rate of interest.

How do you check your credit score in India?

Although there are a large variety of websites that offer a credit score check free of charge, the best thing to do is to check your credit score via CIBIL. You can visit the Official CIBIL website and pay a nominal sum to check your credit score.

How do you calculate personal loan EMIs and how to decide how much personal loan you can afford?

Personal loan EMIs are calculated on the basis of three main factors—the loan amount, your chosen repayment tenor and the monthly rate of interest you are charged. Calculate your personal loan EMIs with ease and precision by using the Personal Loan EMI Calculator.

To decide the amount of personal loan you can afford, study:

  1. Your monthly income
  2. Your fixed monthly expenditure

Once you deduct your fixed or necessary expenses (such as rent, daily living expenses, obligations such as other loan EMIs and other responsibilities) from your income, you will then see what the left over amount is. From this amount, keep aside a sum as savings. Then you can see what you can afford to pay. The next two steps include studying:

  1. Your personal loan interest
  2. Your personal loan EMI

Choose a sum as what you’d like to borrow, and check your interest. Your interest will determine what your monthly EMIs are and you can compare this amount with what you have left over after your fixed expenses and savings.

It is always better, however, to approach your personal loan amount as what you need rather than the maximum amount you get. You can always check the maximum amount you can borrow by using the Personal Loan Eligibility Calculator. Understanding your needs and requirements for the money that a personal loan provides is a more effective way to proceed. This will keep you from over borrowing and getting into a position where you delay or default on your EMIs.

Can Personal Loans be rejected?

Yes. Personal loans can be rejected under the following circumstances:

  • If you have a bad credit history
  • If your income is inadequate for repaying the loan
  • If you have provided incorrect details
  • If you have an unstable job history
  • If you have a previously rejected loan application that is negatively affecting your credit score
  • If you have applied for too many loans at the same time

When do you start paying personal loan EMIs? What is personal loan part pre-payment?

The billing cycle for personal loan EMIs will be from the 26th to 25th of every month and the instalment payment date will be the 5th of each month.

Part pre-payment is a term used when a borrower repays part of the loan in one go, either because he or she unexpectedly received a large sum of money (as a bonus or other income) or because it is a prudent idea to as part pre-payment results in a reduction in your EMI amount or tenor.

You can make a part pre-payment by using Bajaj Finserv’s Customer portal (Experia) after your loan is sanctioned and once you have paid the first EMI. Your Experia ID & password will be shared with you in the welcome letter after disbursal of your loan. A Virtual Account Number (VAN) number can be received by sending an SMS to 9227564444 from any registered mobile number.

You will be charged 2% plus applicable taxes on the part pre-payment amount paid, unless you have opted for a Flexi loan.

What is Personal Loan Foreclosure?

The early closing of a loan – by making a one-time repayment of the outstanding loan amount – is what is commonly called loan foreclosure. Not only does Bajaj Finserv let you foreclose your personal loan at your convenience, but its easy-to-use Foreclosure Calculator allows you to calculate the foreclosure amount. Simply select the number of paid EMIs, the month you want to foreclose your loan and calculate! Easy right?

And remember, you may foreclose your loan any time after the repayment of the 1st EMI. Remember that a foreclosure charge of 4% (plus applicable charges on the principal outstanding) will be applicable when you foreclose your personal loan.

What are the Tax Benefits on Personal Loans?

Since loans are not a part of your income, personal loans are not a taxable fund while filing for IT returns. This means that you don’t have to pay taxes on personal loans. And in some cases, like if you prove that you used the loan for a valid expense, you can save tax and claim tax deductions on the interest paid on the loan.

Also Read : How Personal Loan can provide you Tax Benefits?

How does a Personal Loan affect Credit Score, and what happens if you don’t pay your Personal Loan EMIs?


Personal loans can play a very influential role in boosting your credit score. All you have to do is pay your EMIs on time. Your credit score will start improving if you don’t skip your EMIs or pay them after their due date.

However, if you don’t pay your personal loan EMIs on time, you will face a wide variety of problems ranging from a lower CIBIL score to serious difficulty in acquiring the next loan, apart from the fact that lender can take legal action against you.

What documents should be returned to you after you have repaid your Personal Loan?

After you repay your loan, you should remember to ask for the following documents:

  • Original contract
  • Letter of guarantor (in case you have opted for a secured personal loan)
  • Certificate of closure or No Objection Certificate (NOC)

Are you looking for a personal loan to tide over your financial constraints? Look no further than Bajaj Finserv, an NBFC that offers various personal loans to suit your requirements. With competitive interest rates, easy online application and instant approval, Bajaj Finserv ensures that your personal loan is approved within seconds and you need funds in your account in 72 hours.

Apply for Personal Loan Online Check your Personal Loan Eligibility

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