Dual Interest Rate Home Loans offer a combination of fixed and floating interest rates. With this product, you benefit from a fixed interest rate for the initial loan tenor, after which it transitions to a floating rate for the remainder of the tenor.
This structure provides predictability in repayments during the initial years and adapts to market conditions thereafter.
Features and Benefits
Fixed Interest Rate for Three Years
Lock in competitive rates and enjoy stable EMIs for the first three years.
Interest Rates Starting at 7.99%* p.a.
Enjoy attractive Home Loan interest rates starting at 7.99%* p.a. for salaried applicants.
Transition to Floating Interest Rate
After the fixed period, the loan shifts to a floating rate, allowing borrowers to benefit from favourable market conditions.
No Prepayment Charges
Make part-prepayments during the fixed rate period without additional fees, provided the payments are made using your own sources of funds. Note: `Own Source’ means any source other than by borrowing from a bank/ HFC/ NBFC and/or a financial institution.
Flexibility to Switch Earlier
Borrowers can opt for a premature switch to the floating rate during the fixed rate period by paying conversion charges.
Financial Stability
Enjoy consistent EMIs during the initial years, making it easier to manage your finances.
How Does a Dual Interest Rate Home Loan Work?
A Dual Interest Rate Home Loan begins with a fixed interest rate for a predefined period. During this time:
- The interest rate remains the same, regardless of market fluctuations.
- Borrowers can lock in a competitive rate, especially during a low-rate period.
After the fixed rate period:
- The loan transitions to a floating interest rate, linked to one of the Company’s Floating Rate Benchmarks
- The applicable Floating rate at the time of auto conversion from fixed to floating rate shall be as per prevalent Floating benchmark rate at that time, keeping the spread constant
Eligibility and Documentation
Eligibility Criteria:
| Eligibility Parameters | Salaried | Self-Employed | Self-Employed Professionals |
|---|---|---|---|
| Nationality | Indian (resident only) | Indian (resident only) | Indian (resident only) |
| Work Experience | Minimum 3 years of work experience in a public or private sector company or an MNC | Minimum 3 years of vintage in the current enterprise | Minimum 3 years of vintage in the current enterprise |
| Age | 23 to 67 years** | 23 to 70 years** | 23 to 70 years** |
**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit is subject to change, depending on the property profile.
Documentation Required:
The following documents*** are required to be submitted for a Home Loan Balance Transfer:
- KYC documents (identity and address proofs)
- Mandatory documents (PAN Card or Form 60)
- Photographs
- Income proof documents, Form 16 or latest salary slips (for salaried individuals) / ITR document and P&L statement of the last two years (for self-employed individuals)
- Previous six months’ bank account statements
***Please note that the list of documents mentioned is indicative. During loan processing, additional documents may be needed. These requirements will be communicated to you accordingly.
Interest Rates for Dual Rate Home Loans
Bajaj Housing Finance provides attractive interest rates, starting from 7.99%* p.a. for salaried applicants.
Click here to view the complete list of our housing loan interest rates.
Fees and Charges on a Housing Loan
To know about the applicable Home Loan fees and charges, refer to the tables below:
Home Loan Fees
| Fee | Charge 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 Charge
Individuals 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 and non-individual borrowers who have availed of loans for business purposes.
For individual and non-individual borrowers with floating interest rate loans for non-business purposes:
| Borrower Type: Individual | Term Loan | Flexi Term Loan |
|---|---|---|
| Foreclosure Charges | Nil | Nil |
| Borrower Type: Individual | Term Loan | Flexi Term Loan |
|---|---|---|
| Part-Prepayment Charges | Nil | Nil |
For individual and non-individual borrowers with floating interest rate loans for business purposes and all borrowers with fixed interest rate** loans:
| Borrower Type: Non-Individual | Term Loan | Flexi Term Loan |
|---|---|---|
| Foreclosure Charges | 4%* on Principal Outstanding | 4%* on the Sanctioned Amount during the Flexi Interest Only Loan Repayment Tenor; and 4%* on the available Flexi Loan Limit during the Flexi Term Loan Tenor |
| Part-Prepayment Charges | 2%* on the Part-Prepayment Amount | NIL |
*GST as applicable will be payable by the borrower in addition to the prepayment charges, if any.
**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 business purposes:
- Lease Rental Discounting Loans
- Loans Against any Property availed for business purposes, 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 properties
- Top-up Loans for business purposes, i.e., working capital, debt consolidation, repayment of business loan, expansion of business, acquisition of business assets or any similar end usage of funds
Why Choose a Dual Interest Rate Home Loan?
- Borrower-Centric Approach: Transparent processes and borrower-friendly terms.
- No Hidden Charges: Clear and upfront information about fees and charges.
- Flexible Repayment Options: Tailored repayment plans to suit your financial goals.
- Competitive Rates: Benefit from attractive interest rates during the fixed and floating periods.
Apply for a Dual Interest Rate Home Loan Today
Take advantage of the stability of fixed EMIs and the flexibility of floating rates with Bajaj Housing Finance Dual Interest Rate Home Loans.
Apply today and enjoy a loan tailored to adapt to your financial needs.
*Terms and conditions apply
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