Home Loan

> >

Home Loan Interest Rate

Quick apply

Just 60 seconds to apply

Enter your first and last name
Enter your 10-digit mobile number
Enter your pin code

I authorize Bajaj Finserv representative to call /SMS towards this application and other products/services. This consent overrides my registration for DNC/NDNC. T&C

Enter net monthly salary
select date of birth
Enter PAN card details
Select employer name from the list
Enter personal email address
Enter official email address
Enter current monthly obligations
Enter annual turnover (18-19)

Thank you

Current Home Loan Interest Rates, Fees and Charges

Bajaj Finserv gives you one of the lowest home loan interest rates in India, and clear and transparent charges on your home loan. Knowing home loan rates in advance helps you to calculate home loan EMIs easily, and thus plan your finances and repayment better. With one of the best housing loan interest rate in India, Bajaj Finserv housing loans are affordable and easy to repay. Here is a list of our current home loan interest rate and charges. You also get home loan interest tax benefit up to Rs. 2 lakh, under Section 24 of the Income Tax Act. You also get home loan tax benefit up to Rs. 50,000 under Section 80EE of the Income Tax Act.


Types of Interest Rates & Fees Charges Applicable
Promotional Interest Rate for Salaried 8.60%** onwards
Regular Housing Loan Interest Rate (Salaried) BFL-SAL FRR* – Margin = 9.05% to 10.30% (For Salaried)
Regular Housing Loan Interest Rate (Self Employed) BFL-SE FRR* – Margin = 9.35% - 11.15%
*BFL-SAL FRR (Bajaj Finance Limited Floating Reference Rate for Salaried customers) 20.90%
*BFL-SE FRR (Bajaj Finance Limited Floating Reference Rate for Self Employed customers) 20.90%
** Loan up to 30 Lakhs
BFL FRR for cases booked prior to 20 June 2018 was 12.95%
Other Fees and Charges Charges Applicable
Processing fees Up to 0.80% (for salaried individuals)
Up to 1.20% (for self-employed individuals)
Loan statement charges Rs. 50
Interest and principal statement charges NIL
EMI bounce charges Rs. 3,000
Penal interest 2% per month
Secure fee Rs. 9999 (One time)
Mortgage origination fee Rs.1,999 (non-refundable)

Bajaj Finserv Home Loans also come with transparent foreclosure charges and part-prepayment charges. Knowing the foreclosure charges and part-prepayment charges on your home loan helps you plan your repayment better. Moreover, if you are an individual borrower with a floating interest home loan, you do not have to pay any foreclosure charges or part-prepayment charges on your housing loan.

Home Loan Foreclosure Charges

Borrower Type: Interest Type Time Period (Months) Foreclosure charges
Individual: Floating rate >1 Nil
Non-individual: Floating rate >1 4% + applicable taxes
All borrowers: Fixed rate >1 4% + applicable taxes

For Term Loan, charges are calculated on the outstanding principal.

For Flexi Interest-only Loan, charges are calculated on the sanctioned limit.

For Flexi Term Loan, charges are calculated on the current dropline limit.

Home Loan Part - Prepayment Charges

Borrower Type: Interest Type Time Period (Months) Foreclosure charges
Individual: Floating rate >1 Nil
Non-individual: Floating rate >1 2% + applicable taxes
All borrowers: Fixed rate >1 2% + applicable taxes

Part-prepayment made should be more than 1 EMI.

These charges not applicable for the Flexi Interest-only Loan and Flexi Term Loan facilities.

Home Loan Fees & Interest Rates FAQs

What is home loan interest rate?

The home loan interest rate is the rate of interest at which the lender sanctions you the loan. In simpler terms, it is the cost you pay to borrow the loan.

Home loan rate of interest are of two types:
  • Fixed - Fixed rate of interest remains constant throughout the loan tenor.
  • Floating - Floating rate of interest changes as per prevailing market conditions.

What is the current interest rate on a home loan?

The current home loan interest rates are:

Fixed rate of interest:  
  • Salaried customers - 9.05% to 10.30%
  • Self-employed customers - 9.35% - 11.15%

Floating rate of interest:  
  • Salaried and self-employed customers - 20.90%

The current promotional housing loan interest rate for salaried customers on home loans up to Rs. 30 Lakh is 8.60%* onwards.

Which interest rate is better for home loan?

There are two types of home loan interest rates you can choose from - fixed or floating interest rates.

Fixed rate home loans enable you to plan your repayment more easily. Your EMIs remain constant throughout the tenor.

The rate of interest on a floating home loan can decrease as floating rates vary with market conditions. Hence, your EMIs become more affordable. However, the rates can also increase along with the EMIs.

One of the advantages of floating rate home loans is zero charges on foreclosure or part-prepayment.

How to calculate housing loan interest rate?

A home loan EMI calculator is an online tool that lets you accurately calculate your monthly instalments or EMIs for the loan. This tool can also help you find the total payable interest and cost of loan. You only have to enter your housing loan interest rate, principal, and tenor to calculate the EMI.

How to reduce home loan interest burden?

You can reduce home loan interest burden in the following ways -  
  • Avail lower home loan interest rates offered by another lender by transferring your existing loan.
  • Part-prepay your home loan to reduce the EMIs and save on interest.
  • Increase your loan EMIs to decrease the total interest payable.

What are the foreclosure charges for Home Loan?

Foreclosure charges are the fees that you pay when foreclosing your home loan. Bajaj Finserv does not charge any fee when individuals on floating rates opt for a foreclosure of their loan.

The charge is 4% + applicable taxes for all borrowers on fixed rates and also for non-individuals on floating rates.

What are the part-prepayment charges for Home Loan?

Part-prepayment charges are the fees you pay when you make a part prepayment of the loan. Any amount you pay over and above one EMI during your home loan tenor is a part prepayment.

Bajaj Finserv does not charge any fee when individuals on floating rates part-prepay their loan.

All other borrowers on fixed rates and also non-individuals on floating rates have to pay 2% + applicable taxes when part-prepaying their loan.

What is the processing fee for Home Loan?

The home loan processing fee is a one-time fee that lenders charge to complete various loan-related formalities like credit checks, property verification, document collection, etc.

Bajaj Finserv charges a processing fee of up to 0.80% of the loan amount for salaried applicants and up to 1.20% for self-employed applicants.

Why should you choose Bajaj Finserv Home Loan?

Some of the reasons why you should choose Bajaj Finserv Home Loan:
  • Subsidies on interest rates under Pradhan Mantri Awas Yojana (PMAY)
  • Home Loans up to Rs. 3.5 Crore.
  • Repayment tenors of up to 20 years.
  • Refinance your home loan with balance transfer facility. Avail a high-value top-up loan of Rs. 50 Lakh with this facility.
  • Minimal documentation requirements.
  • Negligible part-prepayment and foreclosure fees.

People Also Considered

Home Loan eligibility calculator

Determine your Home Loan eligibility and accordingly plan the application amount


Home Loan Balance Transfer

Get a top-up loan without any extra documentation


Home Loan EMI calculator

Calculate your monthly EMI, installments and rate of interest applied on the loan amount


Homes and Loans

Find your dream home from
18000 + properties

Explore More