Latest Bajaj Finance personal loan interest rates and 6 key factors that influence borrowing cost for customers
The total cost of borrowing is directly influenced by the interest rate. A reduced rate results in lower interest payments, ultimately saving you money over time.
The total cost of borrowing is substantially influenced by the interest rate on a personal loan. It is essential to have a thorough understanding of this rate before seeking a loan. The overall cost of borrowing is heavily influenced by the interest rate, as it dictates the additional amount paid in interest on the borrowed sum. A higher interest rate prolongs the loan repayment duration, and conversely, a lower interest rate shortens it. This is due to a higher interest rate leading to a larger share of the monthly payment being allocated to interest rather than reducing the principal amount. As a result, it takes an extended period to reach the point where both the principal and accumulated interest are fully paid off.