Why you should choose the Bajaj Housing Finance Home Loan?

We offer sizeable loans at competitive interest rates with the benefit of flexible repayment over a long tenure. You are also assured of added convenience with the option to apply for a Home Loan online and avail of doorstep service for document collection. Salaried applicants can apply for a fresh Home Loan today and pay EMIs as low as Rs.664/Lakh*.

What is the current interest rate on Home Loans?

The current interest rates applicable to Home Loans differ based on the employment of the borrower. Salaried individuals can secure Home Loans with Bajaj Housing Finance at interest rates starting from 7.15%* p.a., while self-employed applicants can avail of Home Loans with interest rates starting from 7.75%* p.a.

Which interest rate is better — fixed or floating interest rate?

Which of the two is better depends on market conditions. Typically, a fixed rate of interest can be beneficial when the interest rates are on an upward trend. On the other hand, you can benefit from a floating rate of interest when the interest rates are on a downward trend. A floating rate of interest refers to a rate that varies over time. It is linked to a lender's internal benchmark or an external benchmark. In other words, the interest rate increases or decreases in tandem with the linked benchmark rate. Thus, under favourable market conditions, a reduced benchmark rate may lower the total interest amount payable. On the other hand, a fixed interest rate remains the same till a predetermined reset date.

What is the processing fee for Home Loans?

When applying for a Home Loan with Bajaj Housing Finance, applicants are required to pay a processing fee of up to 4% of the total loan amount with GST as applicable.

How to reduce Home Loan interest in India?

There are two ways to reduce your Home Loan interest rates: Improve your credit score: In India, credit scores range from 300 to 900, with a score of 750 or above considered ideal. A higher credit score can increase your chances of loan approval and can also help you secure a lower Home Loan interest rate. Consider a balance transfer: If you are currently paying high interest rates to your lender, you might want to explore the option of transferring your balance to Bajaj Housing Finance with the Home Loan Balance Transfer facility. This can potentially lower your interest rate and offer you better loan terms.

What are the main factors that influence my Home Loan interest rate?

The following factors can influence your Home Loan Interest Rate: Interest Rate Type The type of interest rate you opt for can affect how much interest you pay overall. CIBIL Score Your credit score reflects your repayment history and financial reliability. A higher score, ideally 750 or above, can help you secure better interest rates. Employment Type Your job profile and income stability also play a role in the interest rate you get.

Does a credit score impact the interest rate on a Home Loan?

Yes, your credit score does impact the interest rate on a Home Loan. A higher score can make you eligible a more competitive rate. A lower score may lead to less favourable terms.

Home Loan Interest Rate Starting at 7.25%* p.a. (August 2026)

Home Loan Interest Rates

Bajaj Housing Finance offers attractive Home Loan interest rates starting from 7.25%* p.a. for salaried individuals. Borrowers also have the advantage of availing of a sizeable sanction with minimal documentation, quick processing, and instant loan approval. With us, you can be assured of complete transparency in terms of how much you pay, when, and why.

Home Loan Interest Rates for Salaried and Self-Employed Individuals

The interest rates on housing loans are different for salaried and self-employed borrowers. Your credit score, income, and employment history are evaluated, among other factors, to calculate your Home Loan eligibility. By fulfilling the eligibility requirements, applicants can obtain a favourable Home Loan interest rate from Bajaj Housing Finance. The following tables show the current Home Loan interest rates for salaried and self-employed applicants:

Interest Rates for Salaried Applicants

Salaried Floating Reference Rate: 14.95%

Home Loan Interest Rate (Floating)

Loan Type	Effective ROI (p.a.)
Home Loan	7.25%* to 10.25%*
Home Loan (Balance Transfer)	7.30%* to 10.35%*
Top-up	8.30%* to 10.40%*

Interest Rates for Self-Employed Applicants

Self-Employed Floating Reference Rate: 16.13%

Home Loan Interest Rate (Floating)

Loan Type	Effective ROI (p.a.)
Home Loan	7.70%* to 10.65%*
Home Loan (Balance Transfer)	7.95%* to 10.80%*
Top-up	9.20%* to 10.85%*

Salaried individuals and self-employed professionals can also avail of Repo Rate linked Home Loans.

For a complete list of interest rates, please click here.

The Rate of Interest for each loan is determined considering several factors which includes but not limited to, your profile including employment/profession type, age, industry segment and other details, your credit score, overall indebtedness & repayment track record as provided by Credit Information Companies (‘CIC’), cost of borrowed funds by the Company, credit and default risk in the related business segment in which you operate, historical credit performance of similar homogeneous clients, Secured or Unsecured loan being sought, ticket size / quantum of loan sought, tenure of loan, location delinquency and collection performance, your existing relationship with BHFL and repayment history, your declared & verified income, borrower group financial strength, nature and value of primary collateral security, etc. The above mentioned variables are considered as key underwriting variables for assessment and risk gradation. The aforesaid is dynamic and gets revised periodically as per the existence and performance of past portfolio and hence, subject to change.

Other Fees and Charges

Type of Fee	Charges Applicable
Processing Fee	A nominal fee is charged at the application stage to cover various loan processing costs.
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.50 Lakh	Rs.500
More than Rs.50 Lakh and up to Rs.1.5 Crore	Rs.750
More than Rs.1.5 Crore and up to Rs.10 Crore	Rs.3,000
More than Rs.10 Crore	Rs.10,000

Prepayment and Foreclosure Charges

a. Individual borrowers with Home Loans linked to floating interest rates: NIL
b. Fixed rate loans (all borrowers, including individuals)**

Particulars	Term Loan	Flexi Term Loan	Flexi Hybrid Loan
Part Prepayment Charges	4%* on Part Payment Amount	NIL	NIL
Full Prepayment Charges	4%* on Principal Outstanding	4%* on the available Flexi Loan Limit	4%* on Sanctioned Amount during Flexi Interest Only Loan Repayment Tenure; and Up to 4%*on the available Flexi Loan Limit during Flexi Term Loan Tenure

*GST as applicable will be payable by the borrower in addition to the Prepayment Charges.

**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 case of Dual Rate Loans (fixed for initial period and then floating), the Foreclosure / Part-payment charges will be applicable as per the status (fixed/floating) of the loan as on Foreclosure / Part-payment day.

Note: For more details regarding the applicable fees and charges, click here.

Read Also: Types of Loans Available in India

Types of Home Loan Interest Rates in India

The housing loan interest rate can be of two types:

Fixed Interest Rate

The fixed interest rate remains constant for a specific period, and it is not affected by market changes. The major advantage of a fixed interest rate is that it can help in predicting your loan repayment journey in advance. However, a fixed interest rate typically comes with a reset date and can be changed after a certain period to match market conditions.

It is best to opt for this type of interest rate when current rates are expected to increase. This way, you avail of a housing loan at the lowest possible interest rate. However, it is not suitable to go for a fixed-rate Home Loan when there is a possibility of a rate decrease in the future, as this increases your total interest payable.

Floating Interest Rate

Of the two types of house loan interest rates in India, floating interest rates are lower than fixed interest rates at the onset. Generally, floating interest rates are 1-2.5% lower than fixed interest rates. A floating loan interest rate is variable and changes during the tenure based on market fluctuations and benchmark rates, which means your interest outflow keeps changing.

The main advantage of a Home Loan with a floating rate as an individual borrower is that there are no charges on part-prepayment and foreclosure. However, for fixed interest rate Home Loans, prepayment charges apply if payment is not made from 'Own Sources'. Please note that 'Own Sources' refers to any source other than borrowing from a bank/NBFC/HFC and/or a financial institution.

There is also a third option of mixed interest rates, where interest is levied at a fixed rate at the beginning and then converted into a floating rate after a set period. At present, Bajaj Housing Finance offers Home Loans at floating interest rates and dual rates — a combination of fixed and floating interest rates.

Different Methods to Calculate Housing Loan Interest Rates

Looking to calculate your Home Loan interest? When availing of a Home Loan, it is important to understand the Home Loan interest you will be paying over the loan tenure. Here are two methods to calculate your overall interest payable:

Method 1: EMI Calculator

You can simply calculate the interest amount on your Home Loan by using a Home Loan EMI Calculator online. Input the following information into the calculator's fields:

Home Loan amount
Loan repayment tenure
Rate of interest

Once you have entered these details, you will get a detailed breakup of your loan, including the amount payable towards interest.

Method 2: EMI Calculation Formula

Alternatively, use this formula to calculate your EMI liability:

EMI = [P x r x (1+r)^n]/[(1+r)^n-1]

Here, P is the principal, r is the rate of interest, and n is the number of instalments or loan tenure in months.

Understanding Effective Interest Rate

The interest rate on a Home Loan has two components: the base rate and markup rate. The combination of these two determines the interest rate you will be paying. Here is a breakdown of these components:

Base Rate: This is the standard lending rate of the bank applicable for all retail loans. It changes frequently based on various factors.

Markup: This component of a small percentage is added to the base rate to arrive at the effective interest rate (EIR) for a specific type of Home Loan. It varies from one type of loan to another.

What Factors Influence the Interest Rate Offered to You?

The Home Loan interest rate offered to you is influenced by factors such as:

Credit score: A high credit score can help you secure a competitive interest rate
Employment type: Whether you are salaried or self-employed can influence the interest rate offered to you
External economic factors: Changes in benchmark rates, such as the Repo Rate, and market conditions can affect Home Loan interest rates

How to Reduce Your Home Loan Interest Rates?

A low Home Loan interest rate can decrease the cost of borrowing and make repayment more stress-free. Getting an attractive Home Loan interest rate in India is simply a matter of improving your eligibility for the loan and showcasing responsible credit management. The following are some tips to consider:

Maintain a High Credit Score

Having a high CIBIL score can improve your chances of securing a competitive Home Loan interest rate, as it reflects prudent credit management, including timely repayments and responsible credit utilisation.

Consider a Home Loan Balance Transfer

If you are wondering how to secure a low Home Loan interest rate and maximise savings while repaying your loan, you can opt for our Home Loan Balance Transfer facility. You can also secure a sizeable Top-up Loan of Rs.1 Crore* or more, based on eligibility, by transferring your Home Loan to us.

It is advisable to consider the fees and charges associated with switching your loan to ensure that the transfer is beneficial.

*Terms and conditions apply

Frequently Asked Questions

Bajaj Housing Finance offers competitive interest rates starting at 7.25%* p.a. for salaried applicants and 7.70%* p.a. for self-employed applicants.

The Home Loan interest rate offered to you may depend on factors such as your credit score, employment type, and external economic factors.

A good credit score can improve your chances of securing a competitive Home Loan interest rate. However, the final rate is determined after a thorough profile assessment.