Current Home Loan Interest Rates
Bajaj Housing Finance offers attractive Home Loan interest rates starting from 7.49%* p.a. for salaried individuals. Borrowers also have the advantage of availing of a sizeable sanction with minimal documentation, quick processing, and instant loan approval.
With us, you can be assured of complete transparency in terms of how much you pay, when, and why.
Home Loan Interest Rates for Salaried and Self-Employed Individuals
The interest rates on housing loans are different for salaried and self-employed borrowers. Your credit score, income, and employment history are evaluated, among other factors, to calculate your Home Loan eligibility. By fulfilling the eligibility requirements, applicants can obtain a favourable Home Loan interest rate from Bajaj Housing Finance. The following tables show the current Home Loan interest rates for salaried and self-employed applicants:
Interest Rates for Salaried Applicants
Salaried Floating Reference Rate: 15.10%*
Home Loan Interest Rate (Floating)
| Loan Type | Effective ROI (p.a.) |
|---|---|
| Home Loan | 7.49%* to 10.25%* |
| Home Loan (Balance Transfer) | 7.60%* to 10.35%* |
| Top-up Loan | 7.75%* to 10.40%* |
Interest Rates for Self-Employed Applicants
Self-Employed Floating Reference Rate: 16.20%*
Home Loan Interest Rate (Floating)
| Loan Type | Effective ROI (p.a.) |
|---|---|
| Home Loan | 7.85%* to 10.65%* |
| Home Loan (Balance Transfer) | 8.00%* to 10.80%* |
| Top-up Loan | 9.05%* to 10.85%* |
Salaried individuals and self-employed professionals can also avail of Repo Rate linked Home Loans.
For a complete list of interest rates, please click here.
- The Rate of Interest for each loan is determined considering several factors which includes but not limited to, your profile including employment/profession type, age, industry segment and other details, your credit score, overall indebtedness and repayment track record as provided by Credit Information Companies (‘CIC’), cost of borrowed funds by the Company, credit and default risk in the related business segment in which you operate, historical credit performance of similar homogeneous clients, secured or unsecured loan being sought, ticket size/quantum of loan sought, tenure of loan, location delinquency and collection performance, your existing relationship with BHFL and repayment history, your declared and verified income, borrower group financial strength, nature and value of primary collateral security, etc. The above mentioned variables are considered as key underwriting variables for assessment and risk gradation. The aforesaid is dynamic and gets revised periodically as per the existence and performance of the past portfolio, and hence is subject to change.
Other Fees and Charges
| Type of Fee | Charges Applicable |
|---|---|
| Processing Fee | Up to 4% of the loan amount + GST as applicable |
| EMI Bounce Charges | Refer to the table provided below for the full break-up |
| Penal Charges | Click here to know about the penal charges |
EMI Bounce Charges
| Loan Amount | Charges |
|---|---|
| Up to Rs.15 Lakh | Rs.500 |
| More than Rs.15 Lakh and up to Rs.30 Lakh | Rs.500 |
| More than Rs.30 Lakh and up to Rs.50 Lakh | Rs.1,000 |
| More than Rs.50 Lakh and up to Rs.1 Crore | Rs.1,000 |
| More than Rs.1 Crore and up to Rs.5 Crore | Rs.3,000 |
| More than Rs.5 Crore and up to Rs.10 Crore | Rs.3,000 |
| More than Rs.10 Crore | Rs.10,000 |
Prepayment and Foreclosure Charges
Individual borrowers with Home Loans linked to floating interest rates pay no additional charges on the prepayment or foreclosure of the housing loan amount. However, this may change for individual borrowers and non-individual borrowers who have loans for business purposes.
For individual and non-individual borrowers with floating interest rate loans for non-business purposes:
| Particulars | Term Loan | Flexi Term Loan | Flexi Hybrid Loan |
|---|---|---|---|
| Part-prepayment Charges | Nil | Nil | Nil |
| Full Prepayment Charges | Nil | Nil | Nil |
For individual and non-individual borrowers with floating interest rate loans for business purposes and all borrowers with fixed interest rate** loans:
| Particulars | Term Loan | Flexi Term Loan | Flexi Hybrid Loan |
|---|---|---|---|
| Part Prepayment Charges | 2%* on Part Payment Amount | NIL | NIL |
| Full Prepayment 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 |
*GST as applicable will be payable by the borrower in addition to the Prepayment Charges.
**Nil for Home Loans closed by borrowers out of their own sources. Own sources refer to any source, other than borrowing from a bank/NBFC/HFC and/or a financial institution.
Note: In the case of dual-rate Home Loans (fixed for the initial period and then floating), the foreclosure/part-prepayment charges will be applicable as per the status of the loan as on the foreclosure/part-prepayment date.
Purpose of Loan
The following loans shall be classified as loans for a business purpose:
- Lease Rental Discounting Loans
- Loans Against any Property availed for a business purpose, i.e., working capital, debt consolidation, repayment of business loan, expansion of business, acquisition of business assets or any similar end usage of funds
- Loan for purchase of Non-Residential Properties
- Loan against security of Non-Residential Property
- Top-up Loans for a business purpose, i.e., working capital, debt consolidation, repayment of business loan, expansion of business, acquisition of business assets or any similar end usage of funds
Read Also: Types of Loans Available in India
Types of Home Loan Interest Rates in India
The housing loan interest rate can be of two types:
Fixed Interest Rate
The fixed interest rate remains constant for a specific period and it is not affected by market changes. The major advantage of a fixed interest rate is that it can help in predicting your loan repayment journey in advance. However, a fixed interest rate typically comes with a reset date and can be changed after a certain period to match market conditions.
It is best to opt for this type of interest rate when current rates are expected to increase. This way, you avail of a housing loan at the lowest possible interest rate. However, it is not suitable to go for a fixed-rate Home Loan when there is a possibility of a rate decrease in the future, as this increases your total interest payable.
Floating Interest Rate
Of the two types of house loan interest rates in India, floating interest rates are lower than fixed interest rates at the onset. Generally, floating interest rates are 1-2.5% lower than fixed interest rates. A floating loan interest rate is variable and changes during the tenure based on market fluctuations and benchmark rates, which means your interest outflow keeps changing.
The main advantage of a Home Loan with a floating rate as an individual borrower is that there are no charges on part-prepayment and foreclosure. However, the terms for individuals or non-individual borrowers who have availed of a loan for business purposes can be different.
There is also a third option of mixed interest rates, where interest is levied at a fixed rate at the beginning and then converted into a floating rate after a set period. At present, Bajaj Housing Finance offers Home Loans at floating interest rates and dual rates — a combination of fixed and floating interest rates.
Different Methods to Calculate Housing Loan Interest Rates
Looking to calculate your Home Loan interest? When availing of a Home Loan, it is important to understand the Home Loan interest you will be paying over the loan tenure. Here are two methods to calculate your overall interest payable:
Method 1: EMI Calculator
You can simply calculate the interest amount on your Home Loan by using a Home Loan EMI Calculator online. Input the following information into the calculator's fields:
- Home Loan amount
- Loan repayment tenure
- Rate of interest
Once you have entered these details, you will get a detailed breakup of your loan, including the amount payable towards interest.
Method 2: EMI Calculation Formula
Alternatively, use this formula to calculate your EMI liability:
EMI = [P x r x (1+r)^n]/[(1+r)^n-1]
Here, P is the principal, r is the rate of interest, and n is the number of instalments or loan tenure in months.
Understanding Effective Interest Rate
The interest rate on a Home Loan has two components: the base rate and markup rate. The combination of these two determines the interest rate you will be paying. Here is a breakdown of these components:
Base Rate: This is the standard lending rate of the bank applicable for all retail loans. It changes frequently based on various factors.
Markup: This component of a small percentage is added to the base rate to arrive at the effective interest rate (EIR) for a specific type of Home Loan. It varies from one type of loan to another.
Factors That Impact Your Home Loan Interest Rate
There are many factors that affect housing loan interest rates, including external market conditions, such as the Repo Rate and inflation. Some of the other factors that affect the interest rate of your Home Loan include:
Interest Rate Type
The type of interest rate you opt for impacts your overall interest rate outflow. Fixed rates are normally higher than floating rates by 1–2.5%. Please note, Bajaj Housing Finance currently offers Home Loans at floating interest rates and dual interest rates.
CIBIL Score
Your credit score depicts your creditworthiness. A high score of 750+ positions you as a reliable borrower. This can help you get a more competitive interest rate.
Employment Type
Certain job profiles that demonstrate a stable income often qualify for more favourable interest rates. For example, salaried employees working with well-known companies can secure competitive interest rates.
How to Reduce Your Home Loan Interest Rates?
A lower interest Home Loan decreases the cost of borrowing and makes repayment more stress-free. Getting an attractive Home Loan interest rate in India is simply a matter of improving your eligibility for the loan and showcasing responsible credit management. The following are some tips to consider:
Maintain a High Credit Score
The easiest way to secure a lower house loan interest rate is to have a high CIBIL score. This is because a high score reflects a good credit history with various credit types in terms of your repayment track record and credit utilisation ratio.
Consider a Home Loan Balance Transfer
If you are wondering how to secure a lower house loan interest rate and maximise savings while repaying your loan, you can opt for our Home Loan Balance Transfer facility.
However, it is advisable to consider the fees and charges associated with switching your loan to ensure that the transfer is beneficial.
*Terms and conditions apply
Home Loan Interest Rate FAQs
We offer sizeable loans at competitive interest rates with the benefit of flexible repayment over a long tenure. You are also assured of added convenience with the option to apply for a Home Loan online and avail of doorstep service for document collection. Salaried applicants can apply for a fresh Home Loan today and pay EMIs as low as Rs.687/Lakh*.
The current interest rates applicable to Home Loans differ based on the employment of the borrower. Salaried individuals can secure Home Loans with Bajaj Housing Finance at interest rates starting from 7.49%* p.a., while self-employed applicants can avail of Home Loans with interest rates starting from 7.85%* p.a.
Which of the two is better depends on market conditions. Typically, a fixed rate of interest can be beneficial when the interest rates are on an upward trend. On the other hand, you can benefit from a floating rate of interest when the interest rates are on a downward trend.
A floating rate of interest refers to a rate that varies over time. It is linked to a lender's internal benchmark or an external benchmark. In other words, the interest rate increases or decreases in tandem with the linked benchmark rate. Thus, under favourable market conditions, a reduced benchmark rate may lower the total interest amount payable.
On the other hand, a fixed interest rate remains the same till a predetermined reset date.
When applying for a Home Loan with Bajaj Housing Finance, applicants are required to pay a processing fee of up to 4% of the total loan amount with GST as applicable.
There are two ways to reduce your Home Loan interest rates:
Improve your credit score: In India, credit scores range from 300 to 900, with a score of 750 or above considered ideal. A higher credit score can increase your chances of loan approval and can also help you secure a lower Home Loan interest rate.
Consider a balance transfer: If you are currently paying high interest rates to your lender, you might want to explore the option of transferring your balance to Bajaj Housing Finance with the Home Loan Balance Transfer facility. This can potentially lower your interest rate and offer you better loan terms.
