2 min
13 August 2025

The interest rate on your home loan affects your monthly EMIs and the total amount you repay. That’s why it plays a key role in your financial planning. We offer competitive interest rates starting at 7.35%* p.a to make your home loan more affordable, whether you're buying, building, or renovating a home. With EMIs starting at just Rs. 677/lakh**, you can manage your repayments more easily.

Current home loan interest rates start at 7.35%* p.a

Bajaj Finserv offers affordable home loan interest rates starting at just 7.35%* 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.

Home Loan Type Current Home Loan Interest Rates (p.a.)
Home Loan interest rates for salaried applicants
Home Loan 7.35%* to 18%* p.a.
Home Loan (Balance Transfer) 7.60%* to 18%* p.a.
Top-up Loan 8.55%* to 10.30%* 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 10.70%* p.a
Home Loan interest rates for professional borrowers
Home Loan 7.45%* to 18%* p.a.
Home Loan (Balance Transfer) 7.70%* to 18%* p.a.
Top-up Loan 8.65%* to 10.40%* p.a.

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 & 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 & 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 & 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 & Job Stability:
    Stable income from a reputed employer or government sector generally attracts lower rates.

  • Age & Employment Type:
    Younger borrowers with more earning years ahead can be seen as lower risk.

4. Property-Related Factors

  • Property Location & 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 & Offers

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

  • Festive Offers & Tie-ups:
    Banks often run seasonal discounts or tie-ups with developers.

In summary, a lender's decision on your home loan interest rate is a complex interplay of various factors that collectively determine your creditworthiness and the overall risk associated with your loan. By understanding these determinants, you can strategize to improve your profile and potentially secure a more favorable interest rate on your home loan.

Whether you have an excellent credit score or are working to improve it, Bajaj Finserv evaluates applications holistically to provide competitive home loan offers. With flexible home loan eligibility criteria and attractive interest rates, you could secure favorable financing for your home purchase.

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.

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.

 

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 options for different budgets

30 Lakh Home Loan

20 Lakh Home Loan

40 Lakh Home Loan

60 Lakh Home Loan

50 Lakh Home Loan

15 Lakh Home Loan

25 Lakh Home Loan

1 Crore Lakh Home Loan

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

What is home loan interest rate?

A home loan interest rate is the percentage charged by lenders on the loan amount borrowed to purchase a property. It determines the cost of borrowing and affects the monthly EMI payments. Home loan interest rates can be fixed or floating, impacting repayment schedules and overall loan costs.

Can my credit score impact my home loan interest rate?

Yes. Lenders assess various factors, including your credit score and credit profile, before determining the interest rate against the home loan. This is because banks attach spread and credit risk premium to the EBLR while determining their home loan interest rates. If you have a high credit score, you will be seen as a risk-free borrower, and will be charged a lower credit risk premium. This translates to a lower home loan interest rate.

Which is better, floating or fixed interest rates for a home loan?

The choice between a floating and fixed interest rate on a home loan depends on market conditions and personal preferences. While fixed rate home loans help you plan repayment more easily, they may not allow you to take advantage of lower interest rates due to market conditions. However, floating rates can also increase during your tenure. One of the main advantages of a floating interest rate is that it comes with zero charges on foreclosure or part-prepayment of your loan. So, borrowers should carefully consider their financial situation and choose whichever option suits them better.

What is the processing fee for 10 lakh home loan?

The processing fee for a Home Loan is calculated as follows: Up to 1% of the loan amount or ₹10,000 (whichever is higher) + GST is levied. An upfront processing fee of ₹5,000 plus GST shall be collected at the time of application submission.

What are the prepayment rules, charges, and benefits of a home loan?

Prepayment involves paying off a portion or the entire loan before its scheduled tenure. For floating interest rate home loans, there are typically no prepayment penalties as per RBI guidelines. For fixed-rate loans, a nominal prepayment charge may apply, especially if the prepayment is through refinancing. Benefits of prepayment include reduced interest costs and a shorter loan tenure, potentially freeing the borrower from debt faster.

What are MCLR and RLLR, and which one is better for my home loan?

MCLR (Marginal Cost of Funds based Lending Rate) is the internal benchmark for interest rates, reflecting the cost of funds. RLLR (Repo Linked Lending Rate) is directly tied to the RBI's repo rate. RLLR offers greater transparency and faster transmission of rate changes, benefiting borrowers quicker during rate cuts. MCLR offers more stability with less frequent rate changes. The better option depends on the preference for stability versus responsiveness to market fluctuations.

How often do home loan interest rates change, especially for floating rates?

Floating interest rates are linked to external benchmarks like the RBI's repo rate. Changes in these benchmarks can lead to adjustments in the loan's interest rate. Typically, these rates are adjusted at specified intervals, which could be quarterly or half-yearly, depending on the loan agreement and policy.

How to pay a home loan faster?

If your financial situation allows, increasing your Equated Monthly Installments (EMIs) can expedite loan repayment. Higher EMIs reduce the principal faster, thereby decreasing the interest burden over the loan's life. However, ensure that this aligns with your long-term financial plans.

How to reduce home loan interest?

Several ways exist to reduce home loan interest. Maintaining a healthy credit score is paramount, often securing lower rates. Consider shorter tenures or making higher down payments to decrease the overall loan amount, thereby reducing interest payments. Explore balance transfers to switch lenders offering lower rates and utilize prepayment options to pay down the principal quicker. Additionally, consider negotiating with your current lender or opting for floating interest rates to potentially capitalize on favorable market conditions.

What factors affect my home loan interest rate?

Several factors determine the home loan interest rate. A higher credit score can lead to more favorable terms. Other factors considered include income stability, employment type, the loan-to-value (LTV) ratio (the percentage of the property's value financed), and the loan amount requested. Prevailing market conditions and RBI policies also influence interest rates.

What is the interest rate of a Bajaj Finserv Home Loan?

Here's a breakdown of the interest rates:

  • For Salaried Individuals: Rates often start from 7.35%* p.a onwards.

For Self-Employed Individuals: Rates typically start from 7.85%* p.a.onwards.

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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.

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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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