How Does a Home Loan Work in India?

With the rising cost of real estate across almost all cities in the country, a significant number of prospective homebuyers are relying on Home Loans to fund their property purchases.

A housing loan allows you to access sizeable funding to facilitate the purchase of your dream home and repay the sum over a predetermined period, at a predetermined interest rate.

Aspiring Home Loan borrowers can avail of funds from Bajaj Housing Finance at an interest rate starting as low as 8.60%* p.a. for salaried and professional applicants, with a tenor ranging up to 30 years.

Considering a financing option from a lender is a big decision; thus, it is in your best interest to know how a Home Loan works. To offer insight, here are a few things to keep in mind before availing the loan.

• Purpose of a Home Loan: An individual generally considers taking a home loan for the purchase, renovation, or construction** of a property
• Eligibility Criteria: An applicant’s eligibility is based on the property in question and the applicant’s financial, income, employment, and credit profile.
• Type of Projects Approved for a Loan: Home projects are categorised as subvention schemes, time linked plans, or construction linked plans (CLP).
• Applicable Tenor: A loan for a house purchase usually comes with a repayment period of up to 30 years.
• Prepayment Guidelines: As per RBI guidelines, individuals with a floating interest rate loan do not pay any additional charges on prepayment or foreclosure.

**Bajaj Housing Finance does not provide Home Loans for property construction at this point of time

Considering a financing option from a lender is a big decision; thus, it is in your best interest to know how a Home Loan works. To offer insight, here are a few things to keep in mind before availing the loan.

• Search for Home Loan offers in the market, especially considering processing fees and other fees and charges
• Gather all the necessary property-related documentation
• Understand the difference between a fixed and floating home loan interest rate***
• Consider the EMIs and applicable interest rates; a quick way to do this is with the help of our Home Loan EMI calculator.
• Identify the ideal loan terms before you apply and prepare to negotiate for better terms.

***We do not offer fixed interest rate Home Loans at this point of time

This is a brief overview of how a home loan works in India. For many, this is a once-in-a-lifetime investment, and it helps to be prepared for the processes involved.

Now that you have a better understanding of home loans, how they work and the steps to keep in mind before you apply, comfortably opt for Bajaj Housing Finance Home loan. The loan comes with several advantages, including a repayment period of 30 years based on your eligibility. For a hassle-free experience and quick loan approval, apply online by sharing your basic details. 

*Terms and conditions apply