Bajaj Finserv Home Loan Interest Rates 2021

Apply for Bajaj Finserv Home Loans at lowest interest rate of 6.75%. The minimum EMI per lakh is Rs. 649. You can avail of a maximum loan amount of Rs.3.5 crore for up to 20 years. BHFL Home loan offers are flexible and tailored as per customer needs. The processing fee is nominal too.

Bajaj Finserv Home Loan Details

ProductBajaj Finserv Home Loan
Loan amountUp to 85% of the property cost
Rate of interest6.75% onwards
TenureUp to 20 years
Lowest EMI possibleRs. 649 per Lakh
Processing feeUp to 1 % of the loan amount
Salary/IncomeRs 25000 & above
Credit ScoreAbove 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 group can apply for PMAY subsidy as per eligibility.
  • No foreclosure charge.
  • Affordable home loan insurance options
  • Easy top and balance transfer facility available.

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.

Fees and Charges

There are a few charges associated with the Bajaj Finserv Home Loan, such as:

  • Processing Fees
    • For salaried individuals: Up to 0.80% 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 BorrowerPeriodPrepayment charges
Individual borrowers - Floating rate of interestAbove 1 monthNIL
Non-individual borrowers - Floating rate of interestAbove 1 month2% of the part payment amount
All borrowers - Fixed rate of interestAbove 1 month2% of the part payment amount

Foreclosure Charges

Type of BorrowerPeriodForeclosure charges
Individual borrowers - Floating rate of interestAbove 1 monthNIL
Non-individuals borrowers -Floating rate of interestAbove 1 month4% of the foreclosure amount + applicable taxes
All borrowers - Fixed rate of interestAbove 1 month4% of the foreclosure amount + applicable taxes

Compare Bajaj Finserv Home Loan Interest Rates with other banks

LenderInterest RateProcessing Fee
Bajaj Finserv Home Loan6.75% onwards1% + GST
ICICI Bank Home Loan6.75% - 7.55%0.50% - 2% or Rs. 1,500 (Rs. 2,000 for Mumbai, Delhi & Bangalore), whichever is higher + GST
SBI Home Loan6.70% - 8.05%Up to 0.50% + applicable GST
Axis Bank Home Loan6.90% - 8.40%Up to 1%, minimum Rs.10,000
HDFC Home Loan6.75% - 7.65%Up to 1.50% of the loan amount or Rs. 4,500 (whichever is higher) + applicable taxes

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.

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 6.80% onwards. They offer concessional interest rates on Home Loans to women borrowers. Additionally, people belonging to low income groups get subsidised Home Loans under PMAY subsidy.

Bajaj Finserv also gives you a 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.

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Bajaj Finserv Home Loan Interest Rates FAQs

What types of interest rates do Bajaj Finserv offer to its customers?

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 credit score of the borrower (higher the credit score, lower is the interest rate)

What is the difference between the fixed rate and the floating rate of interest?

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.

How do you calculate the Home Loan EMI for a Bajaj Finserv Home Loan?

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.

 

How is the floating rate of interest better than the fixed rate?

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.

Why there are no foreclosure charges on fixed interest rate Home Loans?

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.

Will my EMI change with a change in the rate of interest due to the floating rate regime?

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.

Is it beneficial to vary your EMI or loan tenure?

It is always beneficial to vary your EMI according to the fluctuations rather than altering the loan repayment tenure.

Are income tax benefits available on Bajaj Finserv Home loan repayment?

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.

 

What are the benefits in the interest rates for PMAY borrowers?

PMAY-U borrowers get interest subsidy on the Home Loans depending on the category to which they belong. This subsidy is an upfront subsidy. Hence, these borrowers get concessions in the EMI.

Why do salaried individuals get benefits in the interest rate as compared to self-employed individuals?

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.