If you are planning to purchase a home in Kerala, often celebrated as “God’s Own Country”, a home loan can help turn that dream into reality. Several leading banks and non-banking financial companies (NBFCs) like Bajaj Finserv provide home loans in Kerala with interest rates beginning at 7.45%* p.a. Borrowers can choose a repayment tenure extending up to 32 years, offering flexibility to manage instalments with ease. Lenders may charge a processing fee, usually a small percentage of the total loan amount. Eligible applicants can also secure financing of up to 90% of the property’s market value, reducing the need for a large upfront payment. With the right home loan, living in Kerala’s tranquil landscapes becomes more accessible. Check your eligibility for a home loan from Bajaj Finserv by entering your mobile number and OTP.
This comprehensive guide will help you understand everything about the home loan interest rate in Kerala, factors affecting these rates, and how to choose the right lender.
Factors affecting home loan interest rate in Kerala
Several factors determine the home loan interest rate in Kerala, and understanding them can help you make an informed decision:
1. Credit score: A higher credit score typically results in lower interest rates. Lenders in Kerala assess your creditworthiness based on your credit score and history.
2. Loan amount: The principal loan amount plays a significant role in determining the interest rate. Generally, smaller loan amounts may attract slightly higher rates compared to larger ones.
3. Loan tenure: The length of your loan tenure impacts the interest rate. Shorter tenures often have higher interest rates, but they also result in less overall interest paid.
4. Property type and location: Lenders may offer different rates based on whether the property is in a city, suburban, or rural area. The value and type of property also matter.
5. Income and employment stability: Steady income and stable employment can lead to better home loan interest rates in Kerala.
Types of home loan interest rates
When you apply for a home loan in Kerala, you generally have three types of interest rates to choose from.
1. Fixed interest rate
This rate remains constant throughout the loan tenure. It’s ideal if you want consistent EMIs without worrying about market fluctuations.
2. Floating interest rate
This rate varies based on market conditions and changes in the Reserve Bank of India’s (RBI) repo rates. While it offers potential savings when rates drop, it also carries the risk of rising costs.
3. Mixed interest rate
Some lenders offer a combination of fixed and floating rates, where the interest remains fixed for a certain period and then converts to a floating rate.
How to choose the right lender for home loan interest rate in Kerala
With multiple financial institutions offering home loans in Kerala, it’s crucial to compare and choose the right lender based on the following factors:
1. Interest rate offers: Compare the interest rate offers from different lenders, both banks and non-banking financial companies (NBFCs). Opt for a lender offering a competitive home loan interest rate in Kerala that aligns with your financial goals.
2. Processing fees and hidden charges: While lower interest rates are attractive, don’t overlook additional charges such as processing fees, legal fees, and administrative costs. These can increase your overall loan expense.
3. Loan repayment flexibility: Ensure that the lender offers flexible repayment options such as prepayment, foreclosure without penalties, and EMI adjustments.
Explore Bajaj Housing Finance Home Loan
If you’re looking for a hassle-free and cost-effective home loan in Kerala, Bajaj Housing Finance Home Loan offers a range of benefits:
1. Competitive interest rates: Bajaj Housing Finance provides attractive home loan interest rates tailored to meet your financial needs.
2. Flexible tenure options: Choose from various repayment tenures that suit your financial plans, allowing for greater convenience.
3. Quick processing: Enjoy fast approval and disbursal processes with minimal paperwork, making it easier for you to purchase your dream home in Kerala.
4. Top-up loans: Bajaj Housing Finance also offers top-up loans for those who need additional funding beyond their primary home loan.
5. Balance transfer facility: Transfer your existing home loan to Bajaj Housing Finance to benefit from lower interest rates and better repayment terms.
Eligibility criteria for a home loan in Kerala
When applying for a home loan in Kerala, lenders assess specific factors before approval. Both banks and NBFCs follow general parameters to determine eligibility. These include the applicant’s age, nationality, income source, credit history, and professional stability. A good repayment capacity and consistent income boost the chances of approval, while a strong CIBIL Score helps applicants qualify for better interest rates.
For salaried individuals, eligibility for a home loan from Bajaj Finserv usually depends on age limits between 23 and 67 years, along with at least two years of professional experience. Self-employed individuals may apply between 23 and 70 years of age, provided they have been in their profession or business for at least two years. Both categories must maintain a credit score of 725 or higher. Applicants are also encouraged to disclose any secondary or additional income, as this strengthens their application by demonstrating better repayment ability.
The following table outlines the general eligibility criteria for home loans in Kerala from Bajaj Finserv:
Eligibility parameters |
Salaried individuals |
Self-employed individuals |
Nationality |
Indian resident |
Indian resident |
Professional experience |
Minimum 2 years |
Minimum 2 years |
Age |
23 – 67 years |
23 – 70 years |
CIBIL Score |
725+ |
725+ |
Want to check your eligibility? Do it with ease by entering your mobile number and verifying it with an OTP.
Documents requirement for home loans in Kerala
Category |
Salaried applicants |
Self-employed applicants |
Property documents |
Sale deed, stamped agreement of sale, or allotment letter NOC from housing society or builder Possession certificate and land tax receipt from land/revenue department Detailed estimation of construction cost Bank account statement or payment receipt detailing payment made to seller or builder Occupancy certificate (for constructed apartments) |
Sale deed, stamped agreement of sale, or allotment letter NOC from housing society or builder Possession certificate and land tax receipt from land/revenue department Detailed estimation of construction cost Bank account statement or payment receipt detailing payment made to seller or builder Occupancy certificate (for constructed apartments) |
Identity proof (any one) |
Aadhaar PAN Voter ID Passport Driving License |
Aadhaar PAN Voter ID Passport Driving License |
Address proof (any one) |
Any of the above identity proof documents with the permanent address Electricity bill Telephone bill Post-paid mobile bill Water tax receipt Property tax receipt |
Any of the above identity proof documents with the permanent address Electricity bill Telephone bill Post-paid mobile bill Water tax receipt Property tax receipt |
Additional documents |
Passport-sized photograph |
Passport-sized photograph |
Proof of income/business existence |
Proof of income (latest salary slips), and |
PAN GST registration certificate Trade license Partnership deed Articles of Association/Memorandum of Association Import Export Code SEBI registration certificate ROC registration certificate |
Financial statements |
N/A |
Profit & Loss Account Statement (Audited by a CA) Balance Sheet (Audited by a CA) |
Bank account statement |
Account statements for the last 6 months |
Account statements for the last 6 months |
*Note: This is an indicative list that may change based on your actual loan application.
How to apply for a Bajaj Housing Finance Home Loan
Here are the steps to easily apply for a home loan online:
1. Click the "APPLY" button on the Bajaj Housing Finance website.
2. Enter your name, contact number, and employment details.
3. Choose the loan type and generate an OTP for verification.
4. Provide income details, the loan amount required, and property status.
5. Enter your date of birth, PAN number, and any additional requested information.
6. Submit your application.
After submission, a representative will contact you to guide you through the next steps.
Financing your dream home is now more achievable with Bajaj Housing Finance. Apply today to experience seamless home loan processing designed to meet your needs! Check your eligibility to start. It’s simple – just enter your mobile number and OTP to find out how you qualify.
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