Home Loan Overview

Bajaj Housing Finance Limited brings Home Loans at attractive interest rates and charges to make financing your dream home affordable. Individuals with the right eligibility can avail the housing finance of up to Rs.3.5 crore for convenient house purchase. Meet minimum eligibility criteria and proceed to apply for your home loan online.

With top-up advance of up to Rs.50 lakh on balance transfer, PMAY’s interest subsidy benefits, and a tenure extension of up to 20 years, the benefits are multi-fold with one of the best home loans in India.

Home Loan – Features and Benefits

Convenient and affordable, Bajaj Housing Finance Limited Home Loans are designed to fulfil all your mortgage financing needs – from buying your first home to transferring the balance transfer of your existing home loan.Get a housing loan up to Rs.3.5 crore at an attractive interest rate, with benefits like easy balance transfer, top-up loans and get a highest top-up loan of 50 lakhs at 6.90%* interest rate and more.

  • Easy balance transfer facility

    Home loan balance transfer from your existing lender to Bajaj Housing Finance Limited, with an additional top up loan at an attractive interest rate. Transfer your existing home loan to Bajaj Housing Finance Limited easily, with minimal documentation requirements, and basic eligibility criteria, for faster processing.

  • Top-up loan

    High-value top-up loan of 50 lakhs at lowest interest rate on your sanctioned home loan amount, to finance other requirements like furnishing your new home, buying a car, or paying for your child’s education.

  • Interest subsidy under PMAY

    When you apply through Primary Lending Institution (PLI) registered with Central Nodal Agency (CNA). Get a subsidy of up to 6.5% on the interest rate on your home loan, when you apply through the Pradhan Mantri Awas Yojana, which makes your home loan affordable and easy on your pocket.

  • Property search services

    Expert counselling to help you make the best home buying decision, with in-person assistance right from searching for a property that fits your needs and your budget, to purchasing it and getting the legalities in order

  • Part-prepayment and foreclosure facility

    No charges on part-prepayment or foreclosure of your home loan, to make the loan easy on your pocket, if you are an individual buyer

  • Flexible tenor

    Flexible tenors ranging up to 30 years, for easier repayment

  • Minimal documentation

    Minimal documentation requirements, along with easy eligibility criteria, to make your application hassle-free

  • Online account management

    Online management of your home loan account via our digital customer portal, so you can access your loan details anytime, From here

  • Online home loan calculators

    Easy-to-use calculators that help you determine your home loan eligibility, your approximate EMI amount, and the monetary benefits of transferring your home loan balance to Bajaj Housing Finance Limited, so you can plan your finances better

  • Integrated branch network

    A pan-India network of branches with integrated systems that make it easy for you to get assistance with your property search as well as your home loan application

  • Quick processing

    Facilities like doorstep document pick-up to ensure the speedy approval and disbursal of your home loan

    With attractive home loan interest rates and a host of benefits to suit your finances, Bajaj Housing Finance Limited Home Loans are designed to help you get your dream home with ease and comfort. Get the benefits of an easy balance transfer, a high-value top-up loan, hassle-free processing, and more. Apply for a home loan from Bajaj Housing Finance Limited today. 

What are the Types of Home Loan?

Borrowers can select from different types of home loan available to suit their residential property purchase needs. Some of them include the following.

Home Loans for New House Purchase

Avail a housing loan to finance the purchase of a new house with Bajaj Housing Finance Limited. The advance comes with attractive features and is sanctioned on fresh terms of lending. The advance enables borrowers to make the most of available home loan tax benefits.

First-time homebuyers can also apply for interest subsidy under the Pradhan Mantri Awas Yojana.

Home Renovation Loans

Borrowers can also avail a home loan to meet the renovation expenses or the cost of constructing an extension for an existing house property.

Home Loans for Property Construction

The housing finance is suitable to fund house purchase when a residential property is undergoing construction.

Joint Home Loans

Individuals with limited income and repayment capacity can also avail a high-value joint home loan to purchase a residential property of their choice. The co-applicants under a joint housing advance must be a parent, spouse, sibling, son, or daughter. Under a joint housing advance, the home loan tax exemptions are available to both co-borrowers.

Balance Transfer Home Loans

Existing home loan borrowers can avail a balance transfer housing loan. Such a loan is refinanced from an existing lender to a new one for better terms of lending. Bajaj Housing Finance Limited also brings the Home Loan balance transfer facility with other attractive features like low home loans interest rates and a high-value Top-Up Loan. Borrowers can utilise the advance to fulfil their diverse funding needs as it comes with zero end-use restriction.

Pre-approved Home Loans

Bajaj Housing Finance Limited provides pre-approved home loans to existing customers to simplify loan processing. The advance is provided according to the customer’s credit profile, and the pre-approved offer can be accessed only with minimum personal details like name and contact number.

Other best home loan types available include housing loans for women, for government employees, for private employees, for bank employees, etc.

Things to Consider Before Buying a Home

House purchase is a critical decision with sizeable financial implications, both when self-financing such purchase and when availing a housing loan for property purchase.

Size and location of the property

The choice of a suitable size and accommodation during house property purchase depends on your family requirements. Selection should be based on space available in measurement units like sq. Ft. as well as accommodations such as a number of bedrooms.

Property location also contributes significantly. Take care of social infrastructural availability like hospitals, shopping areas, educational institutions, etc. when deciding a property’s location. These factors also typically determine the market price of a property.

RERA Compliance and Encumbrance-free Title

Checking the RERA compliance for a property ensures it’s reliability in terms of encumbrance-free title, construction permissions, quality of property, and seller credibility, and must be checked before property purchase.

Affordability

Homebuyers must also consider the property price and match it with their affordability to make a suitable decision. Availing a housing loan to finance house purchase when the market price of a selected property is high can be a smart financial decision. Meet only a handful of home loan eligibility criteria to avail a feature-rich housing finance.

Bajaj Housing Finance Limited provides high-value home loans in India at attractive rates to make financing house purchase affordable. Existing borrowers can also opt for a home loan balance transfer to refinance their outstanding loan amount at a reduced interest rate and other favourable terms of lending.

Property Aesthetics

The aesthetics of a house property also contribute to an individual’s decision regarding house purchase. They can include factors like sustainable design, view, layout, interior as well as exterior design, etc.

Age of the Property

A property’s age determines its remaining life and contributes critically to its market price as well as resale value. Age of a property also contributes to lender assessment when availing home loans in India for residential property purchase.

A newly constructed property with a long shelf life commands a high market price as well as resale value, and helps raise a substantial fund as a housing loan when mortgaged.

Stage of Construction

Individuals must also consider the project completion status when purchasing a house property under construction. It can help determine tax benefits availability when financing house purchase through a home loan.

Other essential considerations to make before purchasing a house include the availability of amenities, developer’s reputation, security, tax payment status of the seller, choice of lender when availing a home loan, etc.

 

What is Home Loan Eligibility Criteria?

Meet the following eligibility criteria before you apply online for a home loan. Fulfilling all the parameters improves the chances of loan approval and makes processing hassle-free. Depending on their eligibility criteria fulfilment, individuals can avail a suitable housing loan amount.

Eligibility Parameters Criteria to Fulfil
Borrower’s employment profile A borrower can either be salaried or self-employed to avail a home loan.
Age Salaried applicants must be between 23 and 62 years of age.
For self-employed applicants, the age limit ranges between 25 and 70 years.
Residential status and citizenship An applicant must be a residing citizen of India
Employment/occupation stability A salaried applicant must carry a work experience of at least 3 years.
Self-employed individuals should carry a vintage of 5 years or more in their current business.
Maximum loan amount available For salaried applicants, the maximum loan amount can go up to Rs.3 crore.
Self-employed applicants can avail a home loan of up to Rs.5 crore.

What are the Documents Required for Home Loan?

Applicants need to submit the following documents when availing a housing loan. Keep the following documents handy when applying for a home loan online to streamline loan processing.

Eligibility Parameters Criteria to Fulfil
KYC documents (As proof of identity and address) Aadhaar Card, PAN Card, Voter ID Card, Passport, Driving License, Utility Bills, etc.
Proof of employment/business continuity For salaried applicants – Identity Card issued by the employee
For self-employed applicants – Certificate of Incorporation, Memorandum and Article of Association, partnership agreement, etc.
Proof of income For salaried – Form 16/salary account statement for the past 6 months
For self-employed – Bank account statement for 6 previous months, financial statements of the business
Income Tax Return filed for last one year in any of the cases.
Property documents Registered/stamped agreement of sale, allotment letter, occupancy certificate for a property ready to move in, a copy of the approved plan from the builder, receipts of payments made to the seller, etc.

 

Home Loan FAQs

1. Which factors determine my home loan eligibility?

An individual’s eligibility for a home loan is determined by various factors. They include his/her age, income, employment status, place of residence, and property value. The amount of a home loan available also depends on property specifics apart from the set home loan eligibility criteria.

They include its age, location, accessibility, social infrastructural facilities available, current market price, and the resale value. Based on these parameters, the lender decides an LTV for the property, and sanctions the loan. Borrowers can make a higher down payment to increase their eligibility for the advance.

2. What is the minimum salary for a home loan?

A salaried individual applying for a home loan must fulfil the minimum salary threshold depending on his/her city of residence. For cities like Delhi, Mumbai, Faridabad, Ghaziabad, Noida, Thane, etc., the minimum salary requirement is Rs.30,000.

For cities like Ahmedabad, Bangalore, Ahmedabad, Bhopal, Baroda, Chennai, Goa, Hyderabad, Kolkata, Mysore, Nagpur, Pune, etc. the minimum salary requirement is Rs.25,000. Make sure to utilise a home loan EMI calculator to assess a suitable loan amount that keeps your EMIs affordable as per your salary.

3. What is the difference between a fixed rate and a floating rate home loan?

Home loan interest rate levied by lenders is either fixed or floating. A fixed rate means that interest is charged on a home loan at a constant rate throughout the loan tenure. It helps borrowers determine the total interest payable at the onset of the repayment tenure.

A floating rate of interest on home loans is linked to an internal or external benchmarking system that the lender follows. Such interest rate changes as per any change in the benchmark lending rate. Availing a home loan at the floating interest rate benefits a borrower when the market rate predictions show a declining trend.

4. Can I prepay my outstanding home loan amount?

Yes, borrowers can opt to prepay their outstanding home loan amount at any time before the loan tenure ends. They can do so by availing either the part-prepayment or foreclosure facility against a nominal charge. A part-prepayment facility allows borrowers to reduce their total loan liability by a significant margin.

The foreclosure feature allows individuals to close their loan account early via complete repayment in a lump sum. Bajaj Housing Finance Limited levies nil charges on part-pre-payment or foreclosure facilities when Home Loans are availed on floating interest rates.

5. Can I avail tax deductions on my home loan?

Yes, you can avail home loan tax benefits annually on both the principal and interest amount paid towards the total repayment liability. Section 80C of the Income Tax Act 1961 allows annual tax deduction of up to Rs.1.5 lakh on home loan principal repayment. Section 24B also allows a home loan tax exemption of up to Rs.2 lakh on interest paid annually for a self-occupied property. In case of a rented property, the benefits do not carry any maximum limit.

For properties under construction, tax benefits on interest payment are limited to Rs.30,000 annually. First time home buyers purchasing a home under the Pradhan Mantri Awas Yojana can also claim an additional interest tax deduction of Rs.50,000 under section 80EE.

6. Can I switch from a fixed rate to a floating rate during my home loan tenure?

Yes, borrowers can switch from a fixed rate home loan to a floating rate loan against a nominal fee payment. They must take care to go for a cost-benefit analysis before going for the switch to ensure that the floating rate interest charge helps save on the total repayment liability. Doing so is advisable when a further home loan interest rate reduction is ascertained in the market.

Borrowers can also opt for a home loan balance transfer facility when planning to check the total interest accumulation on their home loans.

7. What are the different types of home loans available in India?

Choose from the available home loan types to finance your house purchase, construction or renovation suitably. The prominent home loan types available in India include, new home loans, home construction loans, home loans for renovation, joint home loans, housing finance for women, housing finance for government employees, loans for private employees, pre-approved home loans etc.

8. Can I take 2 home loans at a time?

Yes, an existing borrower can avail a second home loan to finance his/her house purchase plans. The loan amount in that case depends on various factors like the income, age, credit profile, and city of residence. A second home loan on the same property is, however, not allowed as per CERSAI.

A borrower must also meet the home loan eligibility criteria laid down by the lender to avail the housing finance. When in need of additional funds to carry out home renovation or reconstruction, opt for a balance transfer facility with Bajaj Housing Finance Limited. It brings a high-value top-up loan of up to Rs.50 lakh with no end-use restriction for convenient financing of diverse funding needs.

9. How to apply for a home loan?

You can apply for a home loan online in a few simple steps. Fulfil the minimum eligibility criteria laid down by Bajaj Housing Finance Limited, and proceed to apply online. To do so, fill up the application form with your personal, financial, employment, and residential details. Next, fill in the loan amount required and a suitable tenure. Submit the duly filled form with the relevant documents to complete application.

Utilise a home loan eligibility calculator to estimate a suitable loan amount as per your age, income and city of residence, and apply accordingly for improved chances of approval.

10. How do joint home loans work?

Two or more co-applicants can apply for a joint home loan with the required eligibility. It allows the co-borrowers to avail a high-value loan through combined eligibility, and lets them share the repayment burden equally over the tenure.

To avail a joint home loan, the co-borrowers must also share the property ownership. For each year of repayment, the co-borrowers can also claim income tax benefits individually as per their share of repayment amount paid.

11. Is it mandatory to have a co-applicant when applying for a home loan? If yes, who can be a co-applicant for my home loan?

No, financial institutions provide home loans individually to eligible applicants. Individuals lacking the necessary eligibility or requiring a higher loan amount can apply with a co-applicant for a joint home loan.

The co-applicant for a joint home loan can either be a parent, spouse, sister, brother, son or daughter. Each co-applicant must individually fulfil the home loan eligibility criteria to qualify for the required housing loan amount.

12. What is MCLR?

Marginal Cost of Funds based Lending Rate or MCLR is an internal benchmarking system that financial institutions use to set their consumer lending rates for home loans and other advances. It comes with a reset period spanning 3 months, 6 months, 1 year, or 2 years, and is released by financial institutions monthly. Factors contributing to MCLR determination include the marginal cost of funds, operating cost, tenure premium and the negative carry on Cash Reserve Ratio. With the introduction of RLLR or Repo Linked Lending Rate, the MCLR-based lending system is set to be replaced with a more transparent, repo-rate receptive method of interest rate determination.

13. How can NRIs get a home loan?

NRIs can avail a home loan by fulfilling minimum eligibility criteria and documentation requirements. They need to age between 18 and 60 years, and should apply with a co-applicant who is a resident Indian to avail a housing loan.

The home loan eligibility criteria for NRIs also include a work experience of not less than 2 years in the current company. They also need to carry the educational qualification set by the lender to avail the loan.

14. Do I need a guarantor for home loan?

No, as home loans are secured via residential property mortgage, a guarantor is not required to avail the advance. Borrowers must, however, fulfil the minimum eligibility criteria to qualify.

The loan amount available as housing finance depends on various eligibility factors like the applicant’s income, age, property value and age, location, etc. The lender’s LTV also determines the maximum amount available to a borrower as a home loan. Bajaj Housing Finance Limited provides home loans to eligible borrowers up to an LTV, i.e. the maximum percentage value of the property’s market price, of 85%.