I needed ₹8 lakhs fast in 2019.
Two years after moving back from San Jose. My Bangalore apartment needed urgent repairs.
Monsoon had damaged the terrace. Water was seeping into the ceiling. The builder was being difficult.
I had the money in my US bank account. But transferring would take 5 days. SWIFT fees would eat ₹3,000.
Plus the rupee was volatile. I did not want to time the market.
I decided to take a personal loan in India. Use my local income. Keep my dollar savings intact.
My friend suggested Bajaj Finserv. Quick approval. Minimal paperwork.
My colleague recommended Tata Capital. Better rates. Trusted brand.
I applied to both. Got offers from both. The comparison was eye opening.
That experience taught me what matters when you need quick money.
Since then I have advised over 100 people in the Back to India movement on personal loans.
Some went with Bajaj. Some with Tata. Both groups got their money.
Let me break down what I learned.
My Bajaj Finserv Experience: Speed Is Everything
Applied online at 11 PM on a Tuesday. Could not sleep. Terrace was leaking badly.
Filled the form. Uploaded salary slips. Bank statements. PAN. Aadhaar.
Got a call next morning at 9 AM. Relationship manager from Bajaj.
He asked three questions. Verified my employment. Checked my CIBIL.
Approval in 4 hours. Money in my account by 6 PM same day.
₹8 lakhs. Interest rate 14.5%. Tenure 3 years. EMI ₹27,580.
The speed saved me. Contractors started work the next day. Damage stopped spreading.
Would I have preferred a lower rate? Sure. But speed mattered more.
When your ceiling is dripping water into your son’s bedroom. You do not negotiate rates.
You fix the problem. Fast.
For understanding broader borrowing options, check my guide on personal loans for NRIs.
Why I Did Not Choose Tata Capital That Time
I applied to Tata Capital the same day. Tuesday night.
Got a call on Thursday. Two days later.
They needed additional documents. Proof of residence. My US employment history.
I was a returning NRI. My Indian employment was only 2 years old.
They wanted to verify my US income too. Make sure I had no outstanding loans there.
Fair enough. But the process took 7 days.
Approval came. Interest rate was 13.2%. Better than Bajaj by 1.3%.
But the money arrived 6 days after Bajaj. I had already closed the Bajaj loan by then.
Used Bajaj money for repairs. Got Tata money later. Returned it immediately.
Paid nothing extra to Tata. Their cancellation within 7 days had zero charges.
“In emergencies, speed beats savings. In planned expenses, savings beat speed.”
That principle has guided every financial decision since.
The Rate Reality: What You Actually Pay
Let me show you the math that matters.
| Loan Details | Bajaj Finserv | Tata Capital |
|---|---|---|
| Interest Rate Range | 13% to 21% | 10.99% to 21% |
| Processing Fee | Up to 3.93% of loan | Up to 2.75% of loan |
| Approval Time | 4 to 24 hours | 2 to 7 days |
| Loan Amount | ₹1 lakh to ₹40 lakhs | ₹75,000 to ₹35 lakhs |
| Tenure Options | 12 to 60 months | 12 to 72 months |
| Prepayment Charges | 4% if closed before 12 months | 5% if closed before 12 months |
Tata Capital wins on rate. Their starting rate is 10.99%. Bajaj starts at 13%.
That 2% difference is real money.
On a ₹10 lakh loan for 3 years. You save about ₹35,000 with Tata over Bajaj.
Real savings. Not theoretical.
But Bajaj wins on speed. Same day approval versus 2 to 7 days.
Processing fee is higher at Bajaj. 3.93% versus 2.75% at Tata.
On ₹10 lakhs. That is ₹39,300 at Bajaj versus ₹27,500 at Tata.
₹11,800 difference in upfront cost.
Think about what matters more for your situation. Speed or cost.
For understanding how interest rates impact your overall financial planning, read about planning your finances in India after years abroad.
Eligibility: Who Gets Approved
Bajaj Finserv is lenient. CIBIL score above 650 usually gets approved.
My score was 720 when I applied. No questions asked.
Tata Capital is stricter. They prefer CIBIL above 720. Below that they scrutinize heavily.
| Criteria | Bajaj Finserv | Tata Capital |
|---|---|---|
| Minimum CIBIL Score | 650 | 720 |
| Minimum Salary | ₹25,000 per month | ₹30,000 per month |
| Work Experience | 1 year in current job | 2 years total experience |
| Age Range | 23 to 58 years | 24 to 58 years |
Bajaj approves younger professionals. Fresh in career. Lower salaries.
Tata wants stability. More experience. Higher income.
When I moved back in 2017, I joined HappyFox in Chennai. My salary reset.
US salaries do not transfer one to one to India. You know this if you have moved back.
I went from $120,000 in California to ₹35 lakhs in Bangalore. Sounds similar. But taxes and costs differ.
Bajaj looked at my current Indian income. Approved based on that.
Tata wanted my complete financial picture. US assets. Indian income. Credit history in both countries.
More thorough. Also more time consuming.
For those planning to move back, understand the NRI to RNOR to resident transition and how it affects your borrowing capacity.
Documentation: What They Actually Need
Bajaj Finserv keeps it simple.
PAN card. Aadhaar card. Last 3 months salary slips. Last 6 months bank statements.
Upload online. Done.
No physical verification. No home visit. All digital.
Tata Capital asks for more.
Same basic documents. Plus employment letter. Plus proof of residence. Plus sometimes ITR for last 2 years.
They also do physical verification. Someone visits your office. Or calls your HR.
My colleague got a Tata loan last year. The verification person called his company reception.
Asked for HR. Confirmed his employment. Salary. Designation.
Felt intrusive. But that is their process.
Bajaj skips this mostly. They rely on digital verification.
Your bank statement shows salary credit. That is proof enough.
For NRIs, understanding what documents you need is crucial. Check my article on legal documents NRIs need after returning.
The NRI Angle: Can You Even Apply
Here is the catch. Both lenders have NRI specific challenges.
Bajaj Finserv technically allows NRI applications. But approval is rare.
You need to show Indian income. Salary from Indian employer. Or rental income from Indian property.
Foreign salary does not count. Even if you show it.
Tata Capital is similar. They want Indian income source.
When I was in San Jose at SuperMoney, I tried getting an Indian personal loan. Wanted to renovate my Chennai rental property.
Applied to both. Rejected by both.
Reason? No Indian income. NRE account balance did not matter.
This is different from home loans. NRI home loans accept foreign income.
Personal loans do not. At least not from these lenders.
If you are an NRI abroad needing a loan in India. Your options are limited.
Either come back and establish Indian income. Or use international lenders.
HDFC and ICICI have better NRI personal loan products. Worth exploring.
For broader NRI banking needs, read about best Indian banks for returning NRIs.
Real Scenarios: Who Picks What
Scenario 1: Emergency medical expense. Need ₹5 lakhs today.
Choice: Bajaj Finserv
Why? Same day approval. Speed saves lives.
Scenario 2: Debt consolidation. ₹12 lakhs needed. Can wait a week.
Choice: Tata Capital
Why? Lower rate. Savings matter for large amounts. Time is available.
Scenario 3: Recently moved back. CIBIL score 680. Need ₹3 lakhs.
Choice: Bajaj Finserv
Why? More lenient eligibility. Tata might reject at 680 CIBIL.
Scenario 4: Established professional. CIBIL 780. Need ₹15 lakhs. No urgency.
Choice: Tata Capital
Why? Best rate for high CIBIL. Lower processing fee. Longer tenure options.
Scenario 5: Starting business. Need working capital ₹8 lakhs.
Choice: Compare both. Pick lowest rate offer.
Why? Business loans are long term. Every 0.5% matters.
I was Scenario 1 in 2019. Emergency repair. Bajaj was perfect.
My friend was Scenario 4 last year. Wedding expenses. Tata saved him ₹40,000 over loan tenure.
Your scenario determines your choice.
Post your specific situation in our Facebook group. Get feedback from people who borrowed recently.
Rates change. Offers change. Real experiences matter.
Hidden Costs Nobody Mentions
Processing fee is visible. But watch for these.
| Hidden Cost | Bajaj Finserv | Tata Capital |
|---|---|---|
| Bounce Charges | ₹500 per bounce | ₹600 per bounce |
| Late Payment Fee | 3% of overdue EMI | 2% of overdue EMI |
| Loan Cancellation | Free within 7 days | Free within 7 days |
| Statement Charges | Free online | Free online |
Both charge for EMI bounces. Set up auto debit properly.
I missed one EMI in 2020. My account did not have enough balance. Forgot to transfer funds.
Bajaj charged ₹500 bounce fee plus late payment penalty. Total damage ₹1,200.
Learned my lesson. Never again.
For managing multiple financial obligations after moving back, read about what every returning NRI must do in their first year as RNOR.
Customer Service: When You Need Help
Bajaj has decent customer service. Call center responds in 10 to 15 minutes.
Their app is clean. Check loan balance. Download statements. All easy.
But getting a human for complex queries takes time.
Tata Capital feels more personal. Smaller customer base. Better attention.
My friend had an issue with his EMI date. Wanted to change it to match his salary date.
Called Tata. Spoke to someone in 5 minutes. Problem solved same day.
Same request at Bajaj took my colleague 3 days and 5 follow ups.
The difference shows in scale. Bajaj is huge. Tata is more boutique.
Pick what matters to you. Mass scale efficiency or personalized attention.
Tax Benefits: None Really
Personal loans do not get tax deductions. Unlike home loans.
Whether Bajaj or Tata. The interest you pay is not deductible.
Unless you use the money for business. Then different rules apply.
I used my loan for home repair. No tax benefit.
My friend used his for business inventory. He claimed it as business expense.
Check with your CA. Personal loan taxation can be complex.
For comprehensive tax planning after moving back, read my guide on smart tax saving strategies for returning NRIs.
What I Would Do Today
Need money urgently? Bajaj Finserv. No question.
Have time to plan? Apply to both. Compare actual offers.
Your rate depends on your CIBIL score. Your income. Your employment stability.
What I got in 2019 is different from what you will get in 2024.
Both lenders adjust rates based on profile.
Submit applications to both. Wait for sanction letters. Pick the better deal.
Also check ICICI Direct and HDFC for their personal loan products.
Sometimes banks beat NBFCs on rates. Especially if you have existing relationships.
I bank with HDFC. I should have checked their personal loan first. Might have gotten better terms.
Hindsight is perfect. Foresight needs work.
My Honest Recommendation
For most returning NRIs. Start with Tata Capital.
Better rates. Lower fees. Longer tenure options.
If approval takes time. Pivot to Bajaj.
Speed is their strength. Use it when needed.
If you have low CIBIL. Under 700. Start with Bajaj directly.
Tata will likely reject. Save yourself the hard inquiry on credit report.
Both are legitimate lenders. Both deliver on promises.
Neither is a scam. Neither will cheat you.
Your job is picking the right tool for your need.
Think about why you need the loan. Emergency or planned expense.
Emergency? Speed wins. Planned? Rate wins.
That simple logic has served me well for 5 years since moving back.
Also consider reading about best instant loans in India for a broader comparison beyond these two.
Common Mistakes to Avoid
Mistake 1: Borrowing more than needed
You get approved for ₹15 lakhs. You need ₹8 lakhs. Take only ₹8 lakhs.
Extra EMI burden is not worth it.
Mistake 2: Ignoring prepayment terms
Both charge 4% to 5% prepayment penalty in first year.
Plan your repayment accordingly.
Mistake 3: Missing EMIs
One missed EMI drops your CIBIL by 50 to 100 points.
Set up auto debit. Never miss.
Mistake 4: Not reading loan agreement
I know it is boring. 30 pages of legal terms.
Read it. Know what you signed.
Mistake 5: Taking loans for depreciating assets
Do not borrow for vacations or gadgets. Borrow for needs or appreciating assets.
My loan was for home repair. Value addition. Made sense.
Borrowing for an iPhone? That is financial suicide.
The Real Winner
Tata Capital wins on cost. Bajaj wins on speed.
Your priorities determine your choice.
I used Bajaj. Paid more. Got speed. Happy with decision.
My friend used Tata. Saved money. Waited longer. Also happy.
Both of us got what we needed.
That is what matters.
Personal loans are tools. Use the right tool for your job.
And whatever you do. Borrow only if absolutely necessary.
The best loan is no loan.
I paid off my Bajaj loan in 18 months. Saved 18 months of interest.
That prepayment penalty? Worth paying to be debt free faster.
Financial freedom beats everything.
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