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Home Loan – Frequently Asked Questions


1. How often does Bajaj Housing Finance Limited change the home loan interest rate?

A. Bajaj Housing Finance Limited follows a strict re-pricing policy to ensure that your home loan remains affordable throughout the tenor. To that end, our home loan interest rates are reviewed every 2 months. Based on the market conditions at the time of reviewing, the rates are either changed, or kept the same and the same is communicated to the customer.

2. How much should my CIBIL score be to apply for a home loan?

A. A CIBIL score of 750 or higher is ideal when you apply for a home loan.

3. Do I need to have a co-applicant for my home loan?

A. You do not need to have a co-applicant for your home loan if you are registering as the sole owner of the property. However, if the property has a co-owner in addition to you, then the co-owner will have to be a co-applicant on your home loan. Having a co-applicant is ideal for PMAY Loans.

4. How do I pay my home loan EMIs?

A. You can pay your home loan EMIs online, or offline. These are the two most preferred methods:

  • Set up an Electronic Clearing Service (ECS) linked to your bank account. This is a quick, hassle-free, and secure way to pay your home loan EMIs, as the EMI amount gets cut directly from your account and transferred to the Bajaj Housing Finance Limited home loan account. 
  • You can also pay your home loan EMIs by sending post-dated cheques in advance, from any bank account registered in your name. This facility is only for customers in locations where the ECS service is not available. The payment can also be done through the Customer Portal.

5. If I foreclose my home loan, will my CIBIL score be impacted?

A. When you foreclose your home loan, a report is sent to CIBIL, noting that the loan is ‘Closed.’ Cibil Score is a function of AI of TransUnion.

6. What is the TAT (turn-around time) for my foreclosure statement?

A. Generally, the home loan foreclosure statement is generated within 12 days, barring any discrepancies in the documentation. 

7. What are home loan tenor options?

A. You can get a Bajaj Housing Finance Limited Home Loan with a tenor of up to 30 years, depending on your repayment capacity.

8. Who can apply for a home loan?

A. Salaried individuals can apply for a Bajaj Housing Finance Limited Home Loan if they fulfil the following criteria*:

  • Must be an Indian resident
  • Must be aged between 23 and 62 years
  • Must have work experience of at least 3 years

For self-employed individuals, the home loan eligibility criteria are*: 

  • Must be an Indian resident
  • Must be aged between 25 and 70 years
  • Must have at least 5 years of continuity in the current business

*T&C apply

9. Can you get tax benefits on a home loan?

A. You can get significant tax benefits on your home loan, under several sections of the Income Tax Act. They are as follows:

  • Under Section 24, you can get a deduction up to Rs.2 lakh on the interest amount repaid in the financial year
  • Under Section 80C, you can get a deduction of up to Rs.1.5 lakh on principal amount repaid in the financial year
  • Under Section 80C, you can also claim a deduction of up to Rs.1.5 lakh on the registration fees and stamp duty that was paid for the property in that financial year
  • Under Section 80EE, you can claim a deduction of up to Rs.50,000 if you are a first-time homebuyer. 

10. What is a top-up loan?

A. A top-up loan is a loan that is sanctioned over and above your existing home loan. A top-up loan does not require you to submit additional documentation to the lender. You can use it for any purpose, such as furnishing and decorating your new home, upgrading your car, paying for your child’s higher education, and more.

11. How can I check my home loan amount eligibility?

A. Bajaj Housing Finance Limited presents an online home loan eligibility calculator that instantly lets you know the loan amount you are likely to get. All you need to do is enter the following details:

  • Your date of birth
  • The city in which the property is located
  • Your net monthly income (salary and income from other sources)
  • Your desired loan tenor
  • Your current financial obligations (EMIs for other loans, for example)

12. What are the prepayment and foreclosure charges on my home loan?

A. If you are an individual borrower with a floating interest rate home loan, the prepayment and foreclosure charges on your loan are nil. On the other hand, if you are an individual borrower with a fixed interest rate home loan, the prepayment charges on your loan are 2% (plus taxes), and the foreclosure charges on your loan are 4% (plus taxes).

13. What are the charges levied on a home loan balance transfer?

A. Bajaj Housing Finance Limited lists all fees and charges on your home loan balance transfer so that you can make an informed decision about your loan. The charges levied are as follows:

  • Interest rate
  • Processing fee
  • Loan statement charges
  • Interest and principal statement charges
  • EMI bounce charges
  • Penal interest
  • Secure fee
Interest Rates Charges Applicable
Regular interest rate (salaried individuals) BHFL-SAL FRR* – Margin = 7.00%** to 10.30%
Regular interest rate (self-employed individuals) BHFL-SE FRR* – Margin = 9.35% to 11.15%
*BHFL-SAL FRR (Bajaj Housing Finance Limited Floating Reference Rate for salaried individuals) 12.90%
*BHFL-SE FRR (Bajaj Housing Finance Limited Floating Reference Rate for self-employed individuals) 13.30%

*The Bajaj Housing Finance Limited Floating Reference Rate for home loans booked before 20 June 2018 was 12.95%.

Other Fees and Charges Charges Applicable
Processing fee Upto 6% of the loan amount
Loan statement charges NIL
Interest and principal statement charges NIL
EMI bounce charges Rs. 3,000
Penal interest Upto 2% Penal Interest
Secure fee Upto Rs. 9999(one time)

14. How can I apply for a Bajaj Housing Finance Home Loan?

A. Applying for a Bajaj Housing Finance Home Loan is easy. Just follow these steps:

  • Apply online through the application form here.
  • Fill in the required details about your income and the property you wish to purchase
  • Get your pre-approved offer
  • Pay the secure fee online



After this, a relationship manager will contact you and take the process forward.

15. What is the difference between fixed and floating rate of interest?

A. The differences between fixed and floating interest rates on home loans are as follows:

Fixed Interest Rate Floating Interest Rate
Stays the same over your predefined period Changes periodically over the course of your home loan tenor
Is not affected by fluctuations in the market Can increase or decrease with market fluctuations
You can accurately predict your EMIs far into the future You cannot predict your future EMIs accurately, as the interest rate is revised on a regular basis
Allows for long-term financial planning and does not affect your other financial obligations Your long-term financial plans can change if your EMIs go higher after a revision in rates
Can be a little higher than the current floating interest rate, as it stays constant Can go lower than the fixed rate at some points in time, and can also go higher sometimes

16. What do I do if my complaint or service request has not been resolved within 30 days?

A. If you have made a lodged a service request or complaint with us, and it has not been resolved within 30 days, you can reach out to one of these people and escalate your concern to them:

Product Person to Contact Email Id
Home Loans  Jaspreet Chadha
Rural Loans Kuldeep Lowry
Loans Against Property Sanjay Sharma
Lease Rental Discounting Vipin Arora
Developer Finance Dushyant Poddar
Professional Loans Nirav Kapadia

17. What is Repo Rate and how does it impact the Rate of Interest?

The term ‘REPO’ denotes repurchase option or agreement.  The Reserve Bank of India (RBI) lends money to commercial financial institutions at this rate, which is subject to changes as per the running policies. With an increase in repo rate, the cost of credit increases for commercial banks, thus making loans expensive for them. It limits their capacity to borrow and also prompts them to increase the rate of interest offered to retail borrowers for various loans and advances and vice versa with the decrease.

*T&C Apply

18. How is the ROI decided by the financial lending institution?

The final lending rate for various products offered by BHFL will be arrived at after taking into account market reputation, repo rate,  interest, credit and default risk in the related business segment, historical performance of similar homogeneous clients, profile of the borrower, tenure of relationship with the borrower, repayment track record of the borrower in case of existing customer, subventions available, deviations permitted, future potential, group strength, overall customer yield, nature and value of primary and collateral security, etc.

Such information is gathered based on information provided by the borrower, credit reports, market intelligence and information gathered by field inspection of the borrower’s premises. The rate of interest for the same product and tenor availed during same period by different customers need not to be standardized. It could vary for different customers depending upon consideration of any or combination of above factors.

19. Does BHFL Offer Repo Rate?

BHFL offers Repo rate linked Interest rate to its customer as per internal underwriting policy (T&C Apply).