How Does Bajaj Finance Work? Discover the Business Behind India’s Leading NBFC

Bajaj Finance Limited (BFL), part of Bajaj Finserv Ltd., is one of India’s leading deposit-taking Non‑Banking Financial Companies (NBFC-D) and is classified as an NBFC-Investment & Credit Company (NBFC-ICC), regulated by the RBI. Since its inception over 35 years ago, it has grown into a diversified financial institution with a franchise of over 69 million customers across urban and rural India.

In this article, let’s explore how Bajaj Finance works.

Retail Lending Services

BFL offers a variety of consumer-focused lending options:

a. Durable & Lifestyle Finance

• Durable: Financing for home appliances (up to ₹4 lakh), offering zero or low interest EMIs via the EMI Network.
• Lifestyle: EMI-based financing for personal appliances, groceries, fashion, travel, health, and more.

b. Digital Product Finance & EMI Network Card

• EMI Network Card: Pre-approved credit up to ₹4 lakh, 3–24 month tenors, no foreclosure fees, accepted at 60,000+ partner stores in 1,300+ cities with just one-time documentation.

c. Vehicle & Personal Loans

• 2 & 3-Wheeler Loans: New bike/auto financing (Bajaj, KTM) at showrooms.
• Personal Loans: Up to ₹25 lakh, no collateral, online application, tenors of 12–60 months.

d. Secured Loans & Extended Warranty

• Loan Against FD, Gold, Securities: Low rate, flexible repayment, easy process.
• Extended Warranty: Up to 3-year product coverage via Bajaj Allianz.

e. Home Loan & Retail EMI

• Home Loans: Up to ₹3.5 crore, top‑up loans, PMAY assistance, flexible terms.
• Retail EMI: EMI options for electronics, furniture, groceries, and clothes across retail outlets.

f. Co‑Branded Financial Products

• RBL SuperCard Credit Card: Offers EMI, cashback, lounge access, and fuel waivers.
• MobiKwik Wallet: Co-branded digital wallet for payments, bill payment, and travel booking at 2 million+ merchants.

SME & Commercial Lending

For SMEs and vendors, BFL provides:

• Vendor Financing: Up to ₹30 lakh to help retailers with inventory purchases.
• Large-Value Lease Rental Discounting: ₹10–50 crore loans against leased assets.
• Working Capital, Business, Property Loans: Unsecured support up to ₹30 lakh for inventory, expansion, education, weddings, etc.
• Loan Against Property/Shares/Securities: Up to ₹10 crore against collateral with flexible repayment.

Corporate & Institutional Solutions

BFL supports large clients with:

• Warehouse Financing: Up to ₹30 lakh for inventory-based operations.
• Developer Finance: Up to ₹150 crore in loans for real-estate development, backed by local relationship managers.

Investment & Deposit Products

In addition to loans, BFL offers investment options:

• Fixed Deposits: Tenors from 12 to 60 months, rates up to 8.70%, senior citizen benefits, ₹ 25,000 minimum.
• Mutual Funds: Professionally managed, diversified funds with low costs and liquidity (unless locked in).

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Bajaj Finance Share Price Movement

As of June 10, Bajaj Finance share price is trading at ₹9,490.00, down ₹117.50 (1.22%) for the day. Over the past 5 days, the stock has gained ₹480.50 (5.33%), and in the last 6 months, it's up by ₹2,374.90 (33.38%). On a one-year basis, the stock has risen ₹2,351.90, marking a 32.95% increase. Over the past 5 years, it has delivered an impressive gain of ₹7,039.85, reflecting a growth of 287.32%.

Conclusion

Bajaj Finance operates as a one-stop financial services provider, offering a spectrum of credit products—consumer, SME, corporate—alongside investment and deposit solutions. With technological ease, accessible credit, and strong institutional backing, it caters to a wide demographic while maintaining top ratings and financial robustness. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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