Home Loan

A home loan, as the name suggests, is a financing solution that allows you to borrow funds to purchase a property at a predetermined rate of interest and repayment tenor. You then repay the amount through EMIs, and the lender, which can be a bank or another financial institution, retains ownership of the property till you pay the entire sum owed. While home loans are typically intended for the purchase and/or construction of a property, some solutions also cater to renovation and repair. Bajaj Finserv offers high-value loans up to Rs.3.5 crore at competitive interest rates, with the option of flexible repayment tenors extending up to 30 years.

Yes, house loan is eligible for a tax deduction. Home loan tax benefits include Section 80C’s deduction of Rs. 1.5 lakh on the principal repayment and Section 24B’s deduction of Rs.2 lakh on the interest repayment. You can also claim home loan tax deduction for registration fees and stamp duty charges under Section 80C. In the Union Budget 2021, Government extended the additional deduction of Rs. 1.5 lakh for interest repayment on home loan by 31 March 2022 under the section Section 80EEA, to purchase a house costing up to Rs. 45 lakh. This additional deduction is being provided over and above the existing 2 lakh deduction.

As per RBI guidelines, no lender is permitted to offer 100% home financing. You need to make a down payment amounting to 10-20% of the property’s purchase price. Typically, you can obtain up to 80% housing loan financing for your property.

Via Bajaj Finserv, any Indian national having a good financial profile can get a home loan. The home loan eligibility terms include:

• Age limit for salaried: 23 to 62 years
• Age limit for self-employed: 25 to 70 years
• Minimum CIBIL score: 750
• Minimum salary: Rs.25,000
• Work experience for salaried: minimum of 3 years
• Business continuity: minimum of 5 years

Bajaj Finserv requires you to have a minimum net monthly income of Rs. 25,000 to Rs. 30,000 in order to get a housing loan. In places like Delhi, Gurugram, Mumbai and Thane your salary should be at least Rs. 30,000. In cities like Bangalore, Chennai, Hyderabad, and Goa you must earn at least Rs. 25,000.

Salaried persons with work experience of 3 years can get a home loan of up to Rs. 3.5 crore and self-employed individuals having a business continuity of 5 years can avail funding up to Rs.5 crore. Use the Housing Loan Eligibility Calculator to know the maximum loan amount based upon your income, tenor, and current obligations.

The documents required for a Home Loan from Bajaj Finserv include:

• KYC Documents
• Address proof
• Identity proof
• Photograph
• Form 16/ latest salary slips
• Bank account statements of the last 6 months
• Proof of business continuity (for businesspersons, self-employed)

Both types of home loans have their pros and cons. With a fixed-rate home loan, the interest rate remains constant through the tenor, which allows you to forecast EMIs. Pick it when home loan interest rates are low. For floating rate home loans, the interest rate alters basis economic changes and RBI policy decisions. Choose this variant when you expect rates to reduce in the time to come. Additionally, the RBI mandates that you do not need to pay any prepayment or foreclosure charges if you’re an individual borrowing a floating rate home loan.

Basis the different requirements for housing loans and varied customer profiles, the types of home loans available in India are –

Availing a home loan requires an individual to meet eligibility criteria that ensure a borrower’s capacity to repay. The factors that affect eligibility are –

Yes, you can switch from a floating rate of interest to a fixed rate during the repayment tenor of your housing loan. You need to pay a nominal amount as a conversion fee to your lender for switching.

Switching from a floating to fixed rate is best-suited when the market rates are expected to climb up.

Opting for a home loan is a smart financial decision for the following reasons –

No, availing two housing loans at a time for the same property is restricted as per the CERSAI. However, individuals can opt for a home loan balance transfer to refinance their existing housing credit at lower rates of interest. The facility comes with the top-up loan facility, an additional loan over and above the existing loan amount. Avail the funds to meet diverse financial necessities with ease.

Proceed with the following steps to avail a home loan with ease.

The repayment period for loans begins immediately after the lender has disbursed the entire home loan amount. However, in cases of partial disbursal, the interest accrued on such a disbursed amount is required to be paid as pre-EMI. Full EMI payment including the principal and interest amount starts after full disbursal of the loan.

No, It is not mandatory that you take home loan insurance along with your loan. However, you may consider getting an insurance to take care of any liability at a marginal increase in your EMIs.

You start paying your home loan EMI when the disbursement cheque is created. Once you receive the loan amount, you begin paying EMIs as per the EMI cycle. This means if your chosen date for EMI repayment is 5th of a month and you receive the loan on the 28th of the month, then for the first month you pay EMI calculated from the day your home loan was sanctioned to your first EMI date. Next month onwards, you pay regular EMIs on the designated day.

To avail a Bajaj Finserv Home Loan, apply online, via SMS or at our branch.

Online Process:

• Access the online home loan application form
• Enter personal, financial and employment-related details.
• You will get your pre-approved offer.
• Choose the loan amount with the home loan eligibility calculator.
• Provide property details.
• Pay the online secure fee.
• Upload scanned copies of documents.

SMS Method:

Send 'HLCI' to 9773633633

A Bajaj Finserv representative will contact you with your pre-approved offer. You can also obtain a Home Loan by visiting your nearest Bajaj Finserv branch.