I have been regularly being contacted by Bajaj Finance from past 2 weeks. This is for an over draft facility which is like a pre-approved loan and can be used at convenience and withdrawn only the amount needed. Pay interest for the amount used and for the period. You are charged only interest month on month and principle amount can be paid anytime in parts. Well, this sounds like a good to have option. The catch for me was the processing fee being charged. Though when one hears the number in terms of percentage, it sounds very less but when it is calculated that is when it looks huge. They are charging 1% of approved amount as processing fees. 15.25% interest rate. The problem is that nowadays personal loans are available at much lesser interest and lesser time and with 0% foreclosure charges and part payment options. The processing fee is very less.
Now here Bajaj Finance claiming to giving an offer this month are targeting at huge amount generation in the name of processing fee. There are banks giving over draft facilities and very nominal processing fee charged that to when the first withdrawal.is done. I finally decided to not to go with this finance. My analysis and reasoning doesn’t convince me to go for it. Be careful and check other options as well before falling for such things