How Does a Home Loan Work in India?

A Home Loan is a type of secured financing offered to borrowers to purchase a property. The sanctioned amount has to be repaid by the borrower over a specified tenor at a given rate of interest. In a Home Loan, the property being purchased serves as a collateral for the loan. Real estate purchases can become feasible with financial support. If you are considering a property purchase, a housing loan can be a convenient way to access sizeable funds to facilitate the purchase.

Eligible borrowers can avail of funds from Bajaj Housing Finance at competitive interest rates, with a tenor ranging up to 40 years.

Here are a few things to bear in mind while you consider borrowing a Home Loan:

• Eligibility Criteria: An applicant’s eligibility is based on the property in question and the applicant’s financial situation, income, employment, and credit profile, among others.
• Project Approval: Another important aspect to consider is the profile of your selected property. To be eligible for a Home Loan with us, you need to ensure that the property matches our lending parameters.
• Applicable Tenor:  A Home Loan for a property usually comes with a repayment period of up to 40 years. It is advisable to consider your repayment period carefully, as it has a direct impact on your potential interest outflow.
• Prepayment Guidelines:  Individual borrowers with a floating interest rate loan do not pay any additional charges on prepayment or foreclosure on Housing Loans. It is recommended to go through the prepayment guidelines and plan your Home Loan repayment accordingly.

Here are some steps that you can take to find the right Home Loan that accommodates your housing requirements:

• Assess your income, savings, existing debts, and expenses to determine how much you can borrow and repay easily.
• Gather all the necessary property-related documentation and evaluate your eligibility.
• Review your credit report and score to assess your creditworthiness.
• Understand the different types of Home Loan interest rates available.
• Consider the EMIs and applicable interest rates; a quick way to do this is with the help of our Home Loan EMI Calculator.

Note: We do not offer fixed interest rate Home Loans at this point of time.

Apply for a Home Loan with Bajaj Housing Finance for a hassle-free experience and quick loan approval.

*Terms and conditions apply.