Agreements and T&C
The floating interest rate for Home Loan is linked to the internal Floating Reference Rate. It is the benchmark reference rate for Bajaj Finance Limited and is determined based on the prevalent market conditions and the cost of funds, as the cost of funds reduces/increases or as market conditions change internal FRR may be increased or reduced. The current FRR is 20.15% effective 4th March 2014. Any revision in this rate would impact the interest rate on the floating interest rate loans. The increase/decrease in the Interest rate will by default increase/decrease the loan tenor up to permissible as per BFL norms. In case of increase in interest rate, if you want to retain your existing EMI/Tenor, you will have an option of making a part prepayment and keeping your EMI/Tenor constant. No additional charges would be levied for the same. The communication on the changes (Increase/decrease) in the rate of interest would be sent by mail.
Proactive repricing policy
During the entire tenor of your loan, under no scenario will your Rate of interest exceed by 0.75% over the last quarter average Bajaj Finance acquisition rate. The pricing increase happens only in the scenario of an increase in the Cost of Funds and this policy is being put in place as a proactive measure to ensure that there is no inordinate increase in your loan pricing against new acquisitions and there is always parity for your loan. If a customer rate of interest exceeds the current BFL last quarter average acquisition rate by 0.75%, then such cases are reviewed every year in April and October and proactive correction is done in the rate by bringing it down to BFL last quarter average acquisition rate + 0.75%. For example if a customer Loan Account rate of interest is 12.00% in April/October v/s our last quarter average acquisition rate of 11.00% then in April / October we will review the same and revise the customer loan account rate of interest downwards equal to BFL last quarter average acquisition rate + 0.75%. i.e. 11.75% without any reduction in BFRR. This is done by increasing the spread / margin between your rate and BFRR.
The pricing increase happens only in the scenario of an increase in BFRR due to increase in our cost of funds and this policy is being put in place as a proactive measure to ensure that there is no inordinate increase in your loan pricing against new acquisitions and there is always reasonable parity between old and new customer rates
Exclusions:-Customer who will not be part of this policy
Less than 6 EMI Paid Accounts
Flexi Saver Loans
Loan Accounts where there are 3 or more EMI’s are dishonoured in last 12 months prior to Proactive Repricing day.
Loan Accounts who have ever delayed EMI Payment by more than 30 Days during tenor of the loan