Synopsis: Both TATA Capital and Bajaj Finserv offer competitive personal loan options with digital approvals and flexible repayment features. This article compares the interest rates, fees and the features both provide.
In 2026, the personal loan sector in India has exhibited a notable surge in growth, especially bolstered by the rise of online personal loan platforms, swift approval processes, and application completion without paperwork. The competition among NBFC and financial institutions is growing where they are providing a lower initiation rate, flexible repayment terms and speedy disbursal of loans. When it comes to the affordability of a loan, for borrowers, interest rates are no longer the sole factor. Other such costs like processing fees, foreclosure costs, GST etc, have a significant impact on the total cost of repayment during the loan tenure. That’s why it’s imperative to compare lenders in terms of their pricing as well as extra charges in order to apply for a personal loan.
Tata Capital Personal Loan
- The overall interest rate range is generally between 10.99% and 29.99% p.a. and will depend on your income, credit history and repayment history.
- One of the key features is a Hybrid Term Loan (Overdraft) Facility, which allows borrowers to access loans when they are required and only pay interest for the amount drawn out.
- The overdraft facility also provides multiple withdrawals and part-payment facility without imposing extra charges which enhances the repaying flexibility.
- The lender has a fully digital application process and quick approvals and instant disbursal into the borrower’s bank account.
- The borrowers can opt for flexible tenure of repayment as per their EMI affordability and financial comfort.
- Tata Capital is also providing special loan variants to government employees, salary class and women borrowers.
- The company has a clear disclosing of fees, the processing fee ranges up to 5% loan amount plus GST.
- There is a 3 day cooling off/look up period that lets borrowers get out of the loan soon after the loan is disbursed without paying significant prepayment penalties.
Bajaj Finserv Personal Loan
- Bajaj Finserv personal loans are available for a maximum amount of ₹55 lakh, with interest rates starting from 10% pa
- Depending on the capacity of the borrowers, the repayment period varies from 12 months to 108 months.
- The lender offers a completely digital application process, approval in 5 minutes and loan disbursement in 24 hours after the approval.
- There is no collateral, guarantor or security to be required, since the loan is totally unsecured.
- Bajaj Finserv value, 100% transparency on interest rate, charges, as well as loan terms and conditions with no hidden charges.
Basic Eligibility Criteria
- The age of enrollee is between 21 and 80 years.
- Applicants should be employed on a salary basis in a public sector, private sector or multi-national company.
- An approval is preferred when the CIBIL score is 650 or higher.
- The lowest salary offered is around ₹25000 per month, which varies depending on the city and the type of applicant.
Interest Rate Comparison
Processing fees and charges
TATA Capital
The processing fee of up to 5% of the loan with GST is a bit higher than some competitors, but TATA will cover this additional expense. But the lender has a Hybrid Term Loan facility that provides flexibility to the borrower to make multiple withdrawals and part-payment without imposing extra charges. Tata Capital also offers a 3-day cooling off period to borrowers, giving them time to reflect on the loan immediately after the disbursal.
Bajaj Finserv
It has a comparatively lower processing fee of up to 3.93% plus GST, which will help to lower the initial cost of borrowing at Bajaj Finserv. The lender also offers Flexi loan variants, which enable borrowers to save interest on the loan over time by making part-prepayments without charges. In addition, there can be some extra costs like bounce costs and foreclosure charges, which can apply, based on the type of loan and loan repayment pattern, just like Tata Capital does.
Also Read: 5 Best Solar Loans Under PM Surya Ghar Yojana: Interest Rates, EMIs & Subsidy Benefits Compared
Eligibility & Documentation Comparison
TATA Capital provides personal loans for both salaried and self-employed people. The minimum monthly income requirement for salaried applicants is approximately ₹15,000, and a credit score of 725–750 or higher is preferred for quicker loan approvals and better interest rates. Applicants will typically need to be aged from 21 to 58, have a minimum of 1 year of work experience and a minimum of 6 months in the current role. There is a relatively simple documentation process involving:
- PAN Card
- You can use an Aadhaar Card/Passport/Voter ID/Driving License.
- Salary slips (last 2 months)
- Bank statements (last 3 months)
- Proof of employment or ID card
Bajaj Finserv is primarily for the salaried class in private firms, public sector or MNCs. The lender will need a CIBIL score ranging from 650 and above and a monthly income of around ₹25,000 per month, depending on the city of the applicant. The age at the time of loan maturity of the eligible applicant should be within 21 to 80 years. The following documents are required:
- PAN Card
- Aadhaar Card/Passport/Voter ID
- Recent salary slips
- Bank statements
- Name and ID card or address proof for employees.
- Loan Disbursal & Customer Experience
Tata Capital offers a completely digital application process for loans, where eligible borrowers can get the loans approved quickly and disbursed within no time. The lender is oriented toward minimal documentation, online tracking and flexible service for managing the repayment process via the customer’s web portal and mobile services. The Hybrid Term Loan facility also provides added convenience to customers as they can avail the loan as per their requirement. Bajaj Finserv, on the other hand, puts speed and convenience first, and makes sure that the loans are approved within 5 minutes, and disbursed within 24 hours after approval. The company also offers a completely online application process and Flexi loan options, which enable borrowers to better manage EMIs and repayment. It also has higher loans and longer repayment periods, enhancing the affordability of larger loans.
Conclusion
Bajaj Finserv is more suitable for borrowers who are seeking for a lower starting interest rate, a lower processing fee, loan amount in a higher range and are willing to repay the loan for a longer period. Another standout feature of Tata Capital is its Hybrid Term Loan facility that offers a flexible repayment structure, which is perfect for borrowers who are looking for overdraft style borrowing and cash flow flexibility.
Written by Boyapati Sai Jasmitha
