Bajaj Finserv Home Loan Interest Rates
Bajaj Finserv Home Loans start at 8.50% - 15.00% p.a. With a maximum loan amount up to Rs. 3.5 crores, a flexible repayment term of up to 20 years; enjoy the minimum EMI per lakh of Rs. 769. Choose between the numerous home loan schemes and meet the requisite home loan eligibility to avail lowest interest rates on Bajaj Finserv Home Loans.
Bajaj Finserv Home Loan Details
| Product | Bajaj Finserv Home Loan |
| Loan amount | Up to 85% of the property cost |
| Rate of interest | 8.50% - 15.00% |
| Tenure | Up to 20 years |
| Lowest EMI possible | Rs. 769 per Lakh |
| Processing fee | Up to 7 % of the loan amount |
| Salary/Income | Rs 25000 & above |
| Credit Score | Above 600 |
Features of Bajaj Finserv Home Loan Scheme
- Flexible home loans up to Rs 3.5 crore.
- Funding up to 85% of the property value.
- Flexible repayment options for up to 20 years or 240 months.
- Processing is fast, easy, and hassle-free.
- Documentation is minimal and standard.
- Rate concession for women applicants.
- LIG & Middle-income groups can apply for PMAY subsidy as per eligibility.
- No foreclosure charge.
- Affordable home loan insurance options
- Easy top and balance transfer facility available.
Compare Bajaj Finserv Home Loan Interest Rates with other banks
| Lender | Interest Rate | Processing Fee |
|---|---|---|
| Bajaj Finserv Home Loan | 8.50% - 15.00% | 0.505 - 7% + GST |
| ICICI Bank Home Loan | 8.75% | 0.50% - 2% or Rs. 1,500 + GST |
| SBI Home Loan | 8.50% - 10.05% | Up to 0.35% + applicable GST |
| Axis Bank Home Loan | 8.75% - 9.10% | Up to 1%, minimum Rs.10,000 |
| HDFC Home Loan | 8.75% - 9.65% | Up to 0.50% of the loan amount |
How to Calculate Bajaj Finserv Home Loan Rate?
Bajaj Finserv calculates Home Loan interest on daily reducing balances. Therefore, regular repayment of EMIs is beneficial to the borrower. Bajaj Finserv accepts repayments in the form of equated monthly instalments and comprises of two components, the interest component, and the principal repayment component. In the early stages of the loan, the interest component is higher than the principal repayment portion. As time progresses, the principal reduces, whereby the principal repayment component of the EMI becomes higher than the interest portion.
Factors Affecting Bajaj Finserv Home Loan Interest Rates
The effective rate of interest depends on various factors.
- Salaried employees have an advantage because of the regular source of income they have. Therefore, the rate of interest for salaried employees is comparatively less than that for self-employed individuals.
- Other factors that affect the rate of interest are the credit rating of the borrower, the profession/ occupation of the borrower, the age, and the loan amount. Women borrowers get a benefit of 0.5% across the board in almost all cases.
- The better the credit rating, the lower is the interest rate.
- Loans for amounts exceeding Rs 30 Lakhs have a different rate structure. Bajaj Finserv offers interest rates on a case-to-case basis.
- Another factor that influences the Home Loan interest rates is the loan-to-value (LTV) ratio. The marketability of the security is also an influencing factor that decides the margin levied by Bajaj Finserv.
Fees & Charges
There are a few charges associated with the Bajaj Finserv Home Loan, such as:
- Processing Fees
- For salaried individuals: Up to 0.50% of the sanctioned loan amount
- For self-employed individuals: Up to 1.20% of the sanctioned loan amount
- Charges for loan statement: Rs 50
- EMI bounce charges: Rs 3,000
- Security fee (One time): Rs 9,999
- Penal interest: 2% per month
- Mortgage origination fee (non-refundable): Rs 1,999
- Part Prepayment charges
| Type of Borrower | Period | Prepayment Charges |
|---|---|---|
| Individual borrowers - Floating rate of interest | Above 1 month | NIL |
| Non-individual borrowers - Floating rate of interest | Above 1 month | 2% of the part payment amount |
| All borrowers - Fixed rate of interest | Above 1 month | 2% of the part payment amount |
Foreclosure Charges
| Type of Borrower | Period | Foreclosure Charges |
|---|---|---|
| Individual borrowers - Floating rate of interest | Above 1 month | NIL |
| Non-individuals borrowers -Floating rate of interest | Above 1 month | 4% of the foreclosure amount + applicable taxes |
| All borrowers - Fixed rate of interest | Above 1 month | 4% of the foreclosure amount + applicable taxes |
Key Things to Know about Bajaj Finserv Home Loan Interest Rates
Home Loans at Bajaj Finserv are available at very attractive interest rates, starting at 8.50% onwards. They offer concessional interest rates on Home Loans to women borrowers. Additionally, people belonging to low-income groups get subsidised Home Loans under the PMAY subsidy.
Bajaj Finserv also gives you the flexibility to opt for Fixed Interest Rate Home Loan/ Home Equity Loan for the initial three years. The rates will automatically get converted into Floating Interest Rates after three years term.
FAQs
Bajaj Finserv offers fixed and floating rates of interest on its Home Loans.
The rates of interest depend on various factors, such as:
- Category of the borrower (Salaried/Self-employed)
- Loan Amount (Loans over 30 Lakhs have a different rate structure)
- The CIBIL Score of the borrower (the higher the credit score, the lower is the interest rate)
The fixed rate of interest remains the same throughout the loan tenure. The floating rate undergoes changes depending on the market conditions. There is a concept of a floating-cum-fixed rate of interest where the borrower pays interest at a fixed rate for a specific period. Subsequently, the rate structure changes to a floating one.
The Company specifies the EMI payable on the Home Loan in your loan sanction letter. However, you can verify the same by using the Bajaj Finserv EMI calculator. Entering necessary information such as loan amount, rate of interest, and loan repayment tenure gets you the EMI.
At the time of fixation of the interest rate, you will notice that the fixed rate of interest is invariably higher than the floating rate of interest. It is to compensate for the market fluctuations that could happen in the future. Therefore, you end up with a higher EMI. It can also reduce your loan eligibility amount. Secondly, there are no foreclosure charges for individuals who opt for a floating rate of interest.
The Reserve Bank of India has made it explicitly clear that banks and NBFCs should not charge foreclosure penalties from individual borrowers opting for a floating rate of interest Home Loan.
Your EMI should vary according to the fluctuations in the rate of interest. However, banks and NBFCs prefer to keep the EMI constant and increase or reduce the loan tenure accordingly.
It is always beneficial to vary your EMI according to the fluctuations rather than altering the loan repayment tenure.
Yes, every borrower gets income tax benefits under Sec 24 and Sec 80C of the IT Act on home loan repayment, as per RBI guidelines.
PMAY-U borrowers get interest subsidy on the Home Loans depending on the category to which they belong. This subsidy is upfront. Hence, these borrowers get concessions in the EMI.
The nature of income is critical for the repayment of the Home Loan. Salaried employees have a regular income structure, whereas it is not the case with self-employed individuals. Therefore, lenders offer lower interest rates to salaried persons.