What is Home Loan: Meaning & Types of Home Loan

What is a Home Loan?-Banner_WC

Banner-Dynamic-Scroll-CockpitMenu_HomeLoan

WhatisHomeLoan_WC

A Home Loan is a loan taken to purchase a property. When you avail of a Home Loan, the property being financed serves as collateral, meaning it is mortgaged to the lender until the loan is fully repaid.

The loan is repaid through Equated Monthly Instalments (EMIs), which consist of both principal and interest components. In addition to helping you finance your home purchase, a Home Loan may also offer tax benefits under the applicable provisions of the Income Tax Act, 2025. Both the principal repaid and the interest paid on the loan can qualify for tax deductions, helping reduce your overall tax liability.

Bajaj Housing Finance offers a range of Home Loan solutions designed to meet different homeownership needs:

Home Loan

A Home Loan can help you finance the purchase of a residential property, whether it is a resale home, an under-construction property, or a ready-to-move-in residential unit. With Home Loans from Bajaj Housing Finance, you can benefit from a long repayment tenure and a competitive interest rate.

Top-up Loan

Existing Home Loan borrowers may be eligible for a Top-up Loan, which provides additional funds over and above the original Home Loan amount. The funds can be used for a variety of purposes, including home renovation, remodelling, repairs, extension, or expansion projects.

Home Loan Balance Transfer

Our Home Loan Balance Transfer allows you to transfer your existing Home Loan from another lender to us. This option can help you benefit from competitive interest rates, improved loan features, and a chance to avail of a Top-up Loan.

The ideal Home Loan for you depends on your needs. Since different types of Home Loans are customised for different purposes, it is important you apply for one that best suits your requirement. Moreover, chances are that your odds of approval are higher with such a loan.

Do note that some of the loan’s features depend on the Home Loan guidelines and regulations set by the RBI. An example is the maximum capping on the  loan-to-value ratio of a Home Loan at 75% to 90% of the property value, which is set by the RBI.

Before you proceed to apply, it is advisable to check your eligibility. Use our Home Loan Eligibility Calculator to check your eligibility.

Lastly, keep in mind that there are mainly 2 types of home loans, when divided as per interest rate:

Fixed-Rate Home Loan: Allows you to lock-in at a given interest rate (either for the whole tenor, or till a reset date)
Floating-Rate Home Loan: Allows you to benefit when the interest rate dips. However, the interest may also increase due to market conditions.

Also Read: What is a Joint Home Loan?

*Terms and conditions apply

You can claim tax benefits on a Home Loan under the old tax regime:

Deduction Applicable On	Income Tax Section	Maximum Deduction (Rs. per annum)	Parameters
Home Loan Principal	123	1.5 Lakh	A residential property financed through a Home Loan should not be sold within five years of obtaining possession.
Home Loan Interest	22	2 Lakh	The loan amount must be used for purchasing or constructing a residential property. Construction should be completed within five years from the end of the financial year in which the loan was disbursed.
Home Loan Interest	130	50,000	The Home Loan amount should not exceed Rs.35 Lakh, and the value of the property should not exceed Rs.50 Lakh.
Stamp Duty Charges	123	1.5 Lakh	The deduction for stamp duty charges can be claimed only in the financial year in which the expense is incurred.
Joint Home Loan Principal and Interest	123 and 22	1.5 Lakh and 2 Lakh respectively	All co-borrowers can claim tax benefits only if they are also co-owners of the property and contribute towards the loan repayment.
Additional Home Loan Interest Deductions on Affordable Homes	131	1.5 Lakh	The Home Loan must have been sanctioned between 1 April 2019 and 31 March 2022. The property's stamp duty value should not exceed Rs.45 Lakh. The borrower must be a first-time homebuyer and should not claim benefits under Section 130. This deduction is available over and above the deduction available under Section 22.

You need to meet the following eligibility criteria to apply for a Home Loan with Bajaj Housing Finance:

Criteria	Salaried Individuals	Self-Employed Individuals
Nationality	Must be an Indian citizen, including Non-Resident Indians (NRIs)	Must be an Indian resident
Age	Between 23 and 67 years**	Between 25 and 70 years**
Employment/Business Requirement	Must be a salaried applicant with a minimum of 3 years of work experience	Must be self-employed with at least 3 years of continuity in the current business

**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.

Keep the following documents*** handy to apply for a Home Loan:

Document Type	Salaried Individuals	Self-Employed Individuals
Identity Proof	Passport, Aadhaar Card, Driving Licence, or Voter ID	Passport, Aadhaar Card, Driving Licence, or Voter ID
Mandatory Documents	PAN Card or Form 97	PAN Card or Form 97
Income Proof	Salary slips, bank account statements, Form 130, or bank statements	Income Tax Returns (ITRs) or bank account statements
Address Proof	Passport, Aadhaar Card, utility bills, Driving Licence, or Voter ID	Passport, Aadhaar Card, utility bills, Driving Licence, or Voter ID
Property Documents	Documents related to the property being purchased, such as the sale deed, sale agreement, allotment letter, possession letter, and payment receipts	Documents related to the property being purchased, such as the sale deed, sale agreement, allotment letter, possession letter, and payment receipts
Employment/Business Proof	Employee ID card, appointment letter, experience letter, or other proof of employment	Proof of business continuity and existence, along with other business-related documents as required
Photographs	Recent passport-sized photographs of the applicant(s).	Recent passport-sized photographs of the applicant(s).

***This is an indicative list.

How Interest Rates Affect Your Home Loan EMI

The interest rate offered on a Home Loan is determined by several factors, including your CIBIL score, income profile, and loan amount. The table below provides indicative EMI values for different loan amounts and tenures:

Loan Amount	Interest Rate (p.a.)	Tenure	Approx. EMI
Rs.20 Lakh	8.50%	20 years	Rs.17,356
Rs.30 Lakh	8.50%	15 years	Rs.29,542
Rs.50 Lakh	8.50%	25 years	Rs.40,261
Rs.1 Crore	8.50%	30 years	Rs.76,891

*Figures are indicative.

Firstly, visit the Housing Loan application portal.
Then, fill in some of the basic details like name, contact number, income details, loan amount, etc.
Check and agree to the Terms and conditions and click on "Generate OTP".
Enter the OTP you have received and complete the application process.

For further processing, our representative will contact you within 24 hours* of receiving your Housing Loan application.

Frequently Asked Questions

Home Loan eligibility depends on factors such as nationality, age, and employment profile:

Salaried individuals must be Indian citizens, including NRIs, and should be between 23 and 67 years of age. Applicants should also have a minimum of 3 years of work experience.
Self-employed individuals must be Indian residents and should be between 25 and 70 years of age. They should have at least 3 years of continuity in their current business.

**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.

To know the Home Loan amount you can qualify for, you can use a Home Loan Eligibility Calculator.

With Bajaj Housing Finance, you can benefit from a long repayment tenure of up to 32 years.

Yes, you can transfer your existing Home Loan to us and benefit from a reduced interest rate and better borrowing terms.