2 min
05 September 2025

The cost of borrowing through a home loan in India is shaped by several important factors. With the Reserve Bank of India announcing multiple repo rate cuts recently, many banks and lenders are now offering home loans at lower rates, making affordable housing financing a real possibility.

For instance, Bajaj Finserv home loan interest rates are influenced by details such as your credit history, CIBIL Score, monthly income, and proof of employment. A strong repayment track record and steady earnings often help borrowers secure better rates, while weaker financial indicators can result in higher borrowing costs.

Current home loan interest rates start at 7.45%* p.a

Bajaj Finserv offers affordable home loan interest rates starting at just 7.45%* p.a for salaried individuals. For self-employed applicants, the current interest rate begins at 7.85%* p.a. You can also benefit from a high loan sanction of up to Rs. 15 Crore**, with minimal documentation, fast processing, and instant approval.

If you are planning to buy your dream home, understanding your loan eligibility can help you make informed financial decisions. With Bajaj Finserv offering competitive rates starting at 7.45%* p.a, check your eligibility for a home loan from Bajaj Finserv today. You may already be eligible, find out by entering your mobile number and OTP.

Home loan type

Current Home Loan Interest Rates (p.a.)

Home Loan interest rates for salaried applicants

Home Loan

7.45%* to 18%* p.a.

Home Loan (Balance Transfer)

7.55%* to 18%* p.a.

Top-up Loan

8.55%* to 10.40%* p.a.

Home Loan interest rates for self-employed applicants

Home Loan

7.85%* to 18.00%* p.a.

Home Loan (Balance Transfer)

8.25%* to 18%* p.a.

Top-up Loan

8.95%* to 10.85%* p.a

Home Loan interest rates for professional borrowers

Home Loan

7.55%* to 18%* p.a.

Home Loan (Balance Transfer)

7.65%* to 18%* p.a.

Top-up Loan

8.65%* to 10.45%* p.a.


Home loan interest rates by credit score

Get home loan rates based on your credit score, with personalised options designed to match your financial needs.

Credit score

Salaried customers

Self-employed customers

800

7.45%* to 18%* p.a.

7.85%* to 18.00%* p.a.

750 – 800

7.45%* to 18%* p.a.

7.85%* to 18.00%* p.a.


Other charges applicable on home loans

Besides the regular EMIs and interest, several other charges apply to home loans. It's crucial to be aware of these costs to avoid unexpected financial burdens during the home loan journey.

Type of fee

Applicable charges

Processing fees

Up to 4% of the loan amount + GST as applicable

Penal charge

Click here to know about the penal charges.


Planning your home purchase budget involves factoring in all associated costs, not just the property price. To ensure you secure the best possible terms and rates for your home financing needs, check your loan offers with Bajaj Finserv. You may already be eligible, find out by entering your mobile number and OTP.

Home loan EMI bounce charges

loan amount

Charges

Up to Rs. 15 lakh

Rs. 500

More than Rs. 15 lakh and up to Rs. 30 lakh

Rs. 500

More than Rs.30 lakh and up to Rs. 50 lakh

Rs. 1,000

More than Rs.50 lakh and up to Rs. 1 crore

Rs. 1,000

More than Rs.1 crore and up to Rs. 5 crore

Rs. 3,000

More than Rs. 5 crore and up to Rs. 10 crore

Rs. 3,000

More than Rs. 10 crore

Rs. 10,000
Home Loan
Home Loan

How do lenders decide the home loan interest rate?

Lenders consider a range of factors to assess the risk involved in lending your money for a home and, consequently, set your interest rate.

1. External economic and regulatory factors

  • RBI’s repo rate:
    If the Reserve Bank of India increases or decreases the repo rate (the rate at which it lends to banks), lenders often adjust home loan rates accordingly.

  • Inflation and economic conditions:
    Higher inflation usually pushes interest rates up to control money supply.

  • Market competition:
    Lenders may offer lower rates to stay competitive.

2. Loan-linked factors

  • Type of Interest Rate:

    • Floating rate (linked to benchmark rates like the RBI’s repo rate) changes over time.

    • Fixed rate remains constant for a set period.

  • Loan amount and tenure:
    Larger loans or very long tenures can sometimes have higher rates because they pose more risk.

  • Loan-to-Value (LTV) ratio:
    If you’re borrowing a high percentage of the property’s value, the rate may be higher due to increased lender risk.

3. Borrower’s profile

  • Credit score (CIBIL Score):
    A score above ~750 usually gets you better rates. Lower scores = higher risk = higher rates.

  • Income and job stability:
    Stable income from a reputed employer or government sector generally attracts lower rates.

  • Age and employment type:
    Younger borrowers with more earning years ahead can be seen as lower risk.

4. Property-related factors

  • Property location and type:
    Well-located, in-demand properties may get lower rates since they’re easier to resell if needed.

  • Builder’s profile:
    Projects by reputed builders may be considered safer by lenders.

5. Special schemes and offers

  • Women borrower benefits:
    Many lenders offer 0.05%–0.1% lower rates for women co-applicants.

  • Festive offers and tie-ups:
    Banks often run seasonal discounts or tie-ups with developers.

Simplify home loan planning with an online EMI calculator

A home loan is a major financial commitment, but with proper planning, you can manage your repayments better and even save on interest. A home loan EMI calculator makes this easier by giving you quick and accurate estimates.

To get started, simply enter your:

  • Loan Amount

  • Interest Rate

  • Loan Tenure

Use our online Home Loan EMI Calculator to save time and plan your finances with confidence.

Once you have calculated your potential EMI and determined your budget, the next step is securing competitive financing for your home purchase. With Bajaj Finserv offering loans up to Rs. 15 Crore* with attractive interest rates, check your eligibility for a home loan from Bajaj Finserv. You may already be eligible, find out by entering your mobile number and OTP.

Home loan options for different budgets

Rs. 30 Lakh Home Loan

Rs. 20 Lakh Home Loan

Rs. 40 Lakh Home Loan

Rs. 60 Lakh Home Loan

Rs. 50 Lakh Home Loan

Rs. 15 Lakh Home Loan

Rs. 25 Lakh Home Loan

Rs. 1 Crore Lakh Home Loan

Rs. 10 Lakh Home Loan

 

Home loan calculators

Home Loan EMI Calculator

Home Loan Tax Benefit Calculator

Home Loan Eligibility Calculator

Home Loan Prepayment Calculator

Stamp Duty Calculator

Income Tax Calculator

Frequently asked questions

How much interest for a Rs. 20 lakh home loan?

The total interest you will pay on a Rs. 20 lakh home loan depends on the rate of interest and the repayment period you choose. As an example, at 7.45% per year over 20 years, your EMI could be around Rs. 16,051. Over the full tenure, the total interest payable would be roughly Rs. 18,52,185, bringing the overall repayment (principal plus interest) to about Rs. 38,52,185.

What will be EMI for a Rs. 40 lakh home loan?

The EMI for a Rs. 40 lakh home loan is linked directly to your loan tenure and the interest rate charged by the lender. For example, if the loan is taken at 7.45% interest over 20 years, the EMI would be about Rs. 32,102. However, with the same rate over just 10 years, the EMI could rise to nearly Rs. 47,376. Using an EMI calculator gives you a personalised and accurate estimate.

How much interest on a Rs. 15 lakh home loan?

The interest on a Rs. 15 lakh home loan varies depending on the loan tenure and rate of interest applied. For example, a 10-year tenure at 7.45% may lead to about Rs. 6,31,937 in total interest. If you choose a 20-year tenure at 7.50%, the interest payable increases substantially. To get an exact figure based on your borrowing, it is best to use a home loan EMI calculator.

What does a hike in home loan interest rates mean for customers?

When lenders increase home loan interest rates, the cost of borrowing rises. This means higher EMIs and a bigger overall repayment burden for customers. Even a small hike can make a noticeable difference, especially for those with long tenures. The actual impact depends on your credit score, income profile, and the terms of your loan. For borrowers, this can reduce affordability and increase financial pressure over time.

During periods of rising rates, it becomes even more important to secure the best possible terms from a reliable lender. If you are considering a home loan, check your eligibility for competitive rates with Bajaj Finserv. You may already be eligible, find out by entering your mobile number and OTP.

How to calculate home loan interest rate?

To calculate your home loan interest, start by dividing the annual interest rate by 12 to get the monthly rate. Then apply the EMI formula: EMI = [P × R × (1+R)^N] ÷ [(1+R)^N – 1], where P is the principal, R the monthly rate, and N the number of months. Once you know the EMI, multiply it by the number of instalments and subtract the principal to arrive at the total interest payable.

What are types of interest rates for home loans?

Home loan interest rates usually come in three main forms: Fixed, Floating, and Hybrid. Fixed rates remain unchanged throughout the tenure, offering stability in repayments. Floating rates change depending on market conditions and may go up or down. Hybrid loans give you both—starting with a fixed rate for a few years, then switching to a floating rate. Each option has its own advantages depending on your financial priorities.

What is a floating interest rate on a home loan?

A floating interest rate is one that changes in line with market conditions and the lender’s benchmark rate, such as the repo rate or MCLR. As a result, your EMI can increase when rates go up and decrease if rates fall. This type of rate gives you the chance to benefit when lending rates drop, but it also carries the risk of higher payments if market rates rise in the future.

How to reduce existing home loan interest rate?

There are several ways to lower the interest rate on your current home loan. You can request your lender for a reduction, especially if you have a good repayment record and high credit score. Alternatively, you can transfer your loan balance to another bank offering a lower rate. Making partial prepayments whenever possible also reduces the outstanding principal, which in turn decreases the overall interest cost across the loan tenure.

If you are currently paying higher interest rates on your existing home loan, exploring balance transfer options could help you save significantly. With Bajaj Finserv offering competitive rates for balance transfers plus top-up facilities, check your loan offers for potential savings. You may already be eligible, find out by entering your mobile number and OTP.

What is a fixed interest rate on a home loan?

A fixed interest rate is one that remains unchanged for the entire duration of your home loan. This means your EMI stays constant, giving you predictable monthly expenses and protection from rising market rates. However, fixed-rate loans may start off slightly higher compared to floating rates, and you won’t benefit if market rates drop. It is most suitable for borrowers who prefer certainty and long-term stability in their finances.

Which type of home loan interest rate should you choose?

The decision depends on your financial outlook and risk comfort. A fixed rate is better if you value stability and expect interest rates to rise in the coming years. A floating rate works well if you are confident rates will fall or if you plan to repay the loan within a short period. A hybrid loan provides a middle path, giving both predictability at first and flexibility later on.

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Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-qualified limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

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Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

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