Home Loan Interest Rate

Home Loan Interest Rate & Charges

Bajaj Housing Finance Limited offers attractive home loan interest rates and charges to both salaried and self-employed borrowers. With the best home loan rates starting from 6.80%*, borrowers can repay their housing finance in affordable EMIs.

Apply with the right eligibility to avail the lowest home loan interest rate and finance the purchase of your dream home conveniently. Bajaj Housing Finance Limited also keeps other rates and charges like home loan processing fees transparent and affordable.

Housing Loan Interest Rate for Salaried and Self-Employed

Housing loan interest rates charged by Bajaj Housing Finance Limited differ for salaried and self-employed borrowers. Applicants can avail the best home loan rates when applying with suitable housing loan eligibility criteria as per their employment and income profile.

When you take a loan from Bajaj Housing Finance Limited (BHFL), you get the benefits of attractive interest rates along with transparent fees and charges. The fees and charges applicable on a loan are as follows:

Home Loan Interest Rate for Salaried Borrowers

Benchmark Rate (BR)	Prevailing BR	Loan type	Type of Rate	BR + Spread	Effective Rate of Interest (per annum)
Repo Rate (RR)	4.00%	Home Loan	Floating	RR+ 3.25 % to RR+ 8.00%	7.25% to 12.00%
Repo Rate (RR)	4.00%	Top up	Floating	RR+ 3.75 % to RR+ 8.00%	7.75% to 12.00%
Salaried Floating Reference Rate (SAL-FRR)	12.90%	Home Loan	Floating	FRR-5.40% to FRR -0.90%	7.00% to 12.00%
Salaried Floating Reference Rate (SAL-FRR)	12.90%	Top up	Floating	FRR-5.15% to FRR -0.90%	7.75% to 12.00%
Salaried Floating Reference Rate (SAL-FRR)	12.90%	Loan Against Property	Floating	FRR-4.40% to FRR -0.90%	8.50% to 12.00%

Home Loan Interest Rate for Self-Employed Borrowers

Benchmark Rate (BR)	Prevailing BR	Loan type	Type of Rate	BR + Spread	Effective Rate of Interest (per annum)
Self Employed Reference Rate (BHFL FRR for SE)	13.30%	Home Loan	Floating	FRR - 4.80% to FRR + 0.20%	8.50% to 13.50%
Self Employed Reference Rate (BHFL FRR for SE)	13.30%	Top up	Floating	FRR - 3.30% to FRR + 0.20%	10.00% to 13.50%
Self Employed Reference Rate (BHFL FRR for SE)	13.30%	Loan Against Property	Floating	FRR - 3.30% to FRR + 0.20%	10.00% to 13.50%

Disclaimer

BHFL charges an additional rate over the benchmark rate, called “Spread”, to arrive at the final lending rate. Spread will vary basis various parameters such as the Bureau Score, Profile, Segments, approval from competent authority etc for arriving at final lending rate
The above-mentioned rates are for new loans originated post August 2020 and not for existing loans and accordingly the Effective rate of interest on existing loans may be different.
On or before March 18, BHFL FRR was applicable for all type of loans (secured & unsecured) booked by the Company however, this benchmark rate is applicable for unsecured loans post this period.
Above benchmark rates are subject to change. The Company will update the applicable benchmark rates on its website as and when changes done.

Home Loan - Other Fees and Charges

TYPES OF FEES	CHARGES APPLICABLE
Processing fees	Up to 6% of the Loan amount
Loan statement charges	NIL
Interest and principal statement charges	NIL
EMI bounce charges	Up to Rs. 3,000/-
Penal interest	Up to 2% Penal Interest
Secure fee	Up to Rs.4,999 (One time)

*Applicable following 1st EMI clearance.

Home Loan Part Prepayment Charges and Foreclosure Charges

Floating Rate Loans: If all Borrowers and Co-Borrowers are Individuals

Borrower Type: Interest Type	Term Loan	Flexi Term Loan	Flexi Hybrid Loan
Time Period (Months)	>1	>1	>1
Foreclosure Charges	Nil	Nil	Nil
Part Payment Charges	Nil	Nil	Nil

Floating Rate Loans: If any Borrower or Co-Borrower is a Non-Individual

Fixed Rate Loans: All Borrowers (including individuals)

	Term Loan	Flexi Term Loan	Flexi Hybrid Loan
Time Period (Months)	>1	>1	>1
Foreclosure Charges	4% * on Principal Outstanding	4%* on the available Flexi Loan Limit	4% * on Sanctioned Amount during Flexi Interest Only Loan Repayment Tenure; and 4%* on the available Flexi Loan Limit during Flexi Term Loan Tenure
Part Payment Charges	2% * on the Part- Payment Amount	NA	NA

* GST as applicable will be payable by the Borrower in addition to the Prepayment Charges.

Bajaj Housing Finance Limited extends best Home Loan interest rates to borrowers to make financing convenient and repayment affordable in the long term. Applicants can choose a suitable interest rate type from fixed and floating rates as per their suitability.

Utilise a home loan EMI calculator to compare the current home loan interest rates and charges, and apply as per convenience. A high eligibility, including income, credit profile, and employment status, keep the lowest home loan rates negotiable.

Individuals can also increase their savings with home loan tax benefits available on housing finance repayment. A competitive housing loan rate and low home loan interest accrual on Home Loans makes EMI payment affordable.

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Home Loan Interest Rate FAQs

Why should you choose the Bajaj Housing Finance Home Loan?

Bajaj Housing Finance Limited offers low-interest Home Loans to make financing the purchase of a high-value residential property affordable for borrowers. With one of the best housing loan interest rates, finance your house property purchase with us. Other convenient and transparent charges levied on home loan also make funding with Bajaj Housing Finance Limited suitable for homebuyers.

What is the current interest rate on home loans?

The current home loan interest rates applicable to home loans differ with borrower type. Self-employed applicants can avail a home loan with Bajaj Housing Finance Limited with floating interest rates starting from 6.80%*.

For salaried individuals, the home loan interest rates start from 6.80%*. Individuals can also avail home loans from Bajaj Housing Finance Limited at fixed rates of interest.

Which interest rate is better? Fixed or Floating interest rate.

The choice of fixed vs floating rate of interest rate depends on the borrower’s preference as well as the existing market trends. A fixed interest rate benefits a borrower when a trend of rising interest rates exists in the market.

Borrowers can benefit from a floating home loan interest rate when the benchmark rates are set, a reducing trend in the mark. The current benchmark lending rate, i.e. repo rate, is one of the lowest, making floating rates on home loans attractive for borrowers. Utilise a home loan interest calculator to assess the difference in total loan payable under fixed and floating rate for an informed decision.

What is the processing fee for Home Loans?

When applying for a home loan with us, applicants need to pay a flat processing fee of up to 6% of the total loan amount applied. Bajaj Housing Finance Limited keeps its Home Loan processing fees nominal and affordable, ensuring minimum strain on a borrower’s finance when availing the advance.

What are the main factors that affect the interest rate of home loans?

Borrowers must take care of multiple factors that impact the home loan rates, affecting their affordability. They include –

Credit profile of the borrower: A borrower’s credit profile, including the credit score and report, establishes the risk involved in lending, and determines the interest rates levied by the lender. Applicants with a reliable credit report and a high score of 750 and above improve their chances of availing the lowest home loan interest rates.
Benchmarking system: The lender’s benchmarking system followed also impacts interest rate determination for home loans. Home loans offered at MCLR-based lending benchmark lack transparency and can turn costlier for borrowers. RLLR-based home loans are directly linked to external benchmarks, i.e., key policy rates like repo rates, and reflect any changes in the key rates within 3 months.
Property’s current market value and location: The current market value and location of a property also play a key role in lending rate determination. High-priced properties at well-connected locations remain a good proposition for lenders and attract competitive home loan interest rates.

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