Bajaj Finserv offers home loans starting at a lower interest rate of 6.70%*. The attractive structure of fees and charges let you lower your EMIs up to ₹645/lakh*. With minimal documentation, you can get a home loan up to ₹5 Crore* on the basis of eligibility to buy, construct, or renovate your home.
Besides, you can also choose to transfer your existing home loan and switch to our offering through a simple process. Our home loan balance transfer facility comes with an array of features including competitive interest rates and a high-value top-up loan. What’s more, it also comes with nil part-prepayment and foreclosure charges.
To know the monthly instalments and total interest payable on your home loan, use our online home loan EMI calculator. You can select a tenor of your choice from the flexible range of tenor of up to 30 years. This tool helps in planning your home loan repayment better.
Apply online now for a home loan and get a step closer to fulfilling your dream of owning your house.
Current Housing Loan Rates Compared for Different Product in the Table Given Below:
Home Loan Interest Rates (Current) - Comparison
Home Loan Interest Rate (For Salaried)
Effective Rate Of Interest (p.a.)
6.70%* to 14.00%*
6.70%* to 15.00%*
Home Loan Interest Rate ( For Self-Employed )
Effective Rate Of Interest (p.a.)
8.25%* to 14.00%
8.25%* to 15.00%*
Home Loan Interest Rate ( Repo Rate: 4.00% )
Effective Rate of Interest (p.a.)
6.70%* to 12.00%*
6.70%* to 12.00%*
For a complete list of fees and charges, please click here
Types of Interest Rates for Home Loans
Interest rates on home loans are levied under two different types, fixed and floating. Take a detailed look at both types.
a. Fixed rate of interest
Fixed home loan interest rate remains constant for the entire loan tenor. It allows you to estimate your total repayment liability and interest outgo at the beginning of the loan tenor. Availing of a home loan at a fixed rate of interest also helps in planning repayment and manage finances efficiently.
A fixed lending rate on home loans is suitable during times when the possibility of an increase in interest rate exists. Depending on the current trend in rate changes, you can avail of finance at the lowest possible rate.
A fixed-rate of interest may not be suitable under circumstances that predict a decreasing trend in interest rates.
b. Floating rate of interest
Unlike fixed rates, floating home loan interest rates are variable and change over the loan tenor due to multiple contributing factors. Based on the benchmark rate linked to housing finance, the floating interest rate on home loans increases or reduces.
You can opt for a floating interest rate on home loans when the market changes indicate a trend of falling rates.
A floating rate of interest may not be suitable during high market volatility as the risk of rising rates exists and can result in increased interest accumulation over time.
Depending on your suitability, borrowers can opt to switch from fixed to floating interest rates and vice-versa during your loan tenor. However, fixed rates are usually 1-2.5% higher than floating interest rates.
Different Methods to Calculate Home Loan Interest Rate
There are three different methods that you can use to calculate your home loan interest rate. Here is a step-by-step guide for your reference.
Using the interest formula
This is a manual process that requires you to use the following formula.
EMI = [P x r x (1+r)^n]/[(1+r)^n-1]
Here, ‘P’ is the principal or loan amount, ‘r’ is the rate of interest on offer and ‘n’ is the tenor of the loan in months.
Using Microsoft Excel
A simpler option is to use the Microsoft Excel program and calculate EMIs using the ‘PMT’ function, which is
Here, ‘RATE’ is the interest rate offered divided by 12, ‘NPER’ is the number of EMIs, and ‘PV’ is the principal amount. Both ‘FV’ and ‘TYPE’ should have the value set to 0.
Using a home loan EMI calculator
Using a Home Loan EMI Calculator is the simplest option and guarantees error-free results every time. These are the steps to follow.
Step 1: Enter the loan amount in the field marked ‘Loan Amount’.
Step 2: Input the interest rate under ‘Interest Rate’.
Step 3: Choose a tenor under the ‘Tenor’ field.
Step 4: Click ‘Calculate’ to get your results
Factors That Affect Home Loan Interest Rate and EMI
There are several factors that affect the interest rate on home loans. Check the factors that impact the housing loan interest rate and payable instalments before applying, for affordable repayment. Factors affecting the interest rate also impact the EMIs payable as a change in interest rate is directly proportional to a change in the instalment amount.
1. Type of interest rate
You can avail of a home loan at any of the three types of interest rates, fixed, floating or mixed. As fixed rates remain constant throughout the loan tenor, floating rates are affected by policy rate changes introduced by the RBI.
A reduction in RBI’s key policy or repo rate and lender competition pulls down the housing loan interest rate and vice-versa. Home loan borrowers can opt for a floating rate during trends of falling market rates. Fixed rates, on the other hand, can be suitable when the lending rates are set to rise in the future.
Mixed rates of interest result in interest levy at a fixed rate at the onset of a home loan tenor and convert to floating rates after a set period.
2. Benchmark rate of lending
Benchmark lending rates can either be Marginal Cost of Funds based Lending Rate (MCLR) or Repo-Linked Lending Rate (RLLR). Financial institutions decide a reset period for MCLR for durations of 3 months, 6 months, 1 year or 2 years across the home loan tenor and levy interest rates accordingly. RLLR is directly linked to the RBI’s repo rate and bears a quick adjustment with every change in the policy rates.
The RBI has decided to phase out MCLR-based lending over time to introduce a more transparent and repo rate-receptive RLLR to offer affordability to customers and improve the overall banking system.
3. LTV or Loan to Value ratio
LTV is the maximum loan amount a lender extends to home loan applicants as a percentage of the property’s current market value. A high LTV, while bringing suitable financing value, also translates to a higher loan quantum and increased risk of lending, resulting in an increased interest rate. Borrowers can increase their down payment amount to pull down the total loan quantum for an affordable housing loan interest rate.
4. Property’s location and condition
The location of a property, its current condition, and the amenities available determine its resale value. The age of the property also commands its resale prospects. A high resale value means a lucrative opportunity for financial institutions, incentivising them to offer lower interest rates to borrowers and vice-versa.
5. Repayment tenor
The repayment tenor of home loans is directly linked to the risk of lending for financial institutions and the time value for the money extended as advance. A borrower’s housing loan interest rate is thus set to be higher for an extended tenor and lower for a shorter period of repayment.
The EMIs are inversely related to the repayment term, making instalments dearer for a short tenor, but interest accumulation remains in check. Contrarily, a long tenure means easy and affordable EMIs but higher interest accumulation.
6. Applicant’s financial profile
The financial profile of an applicant also indicates the margin of risk a financial institution undertakes when lending. Salaried borrowers with a suitable job profile at a reputed organisation or self-employed individuals with stable and regulated income and a high credit score attract competitive interest rates as the risk involved is limited. Such applicants can also negotiate for an affordable rate to make convenient repayment.
Interest rates usually remain high for applicants with unstable income or job profiles due to a higher margin of risk involved.
Make sure to consider all these factors before applying for a home loan to secure the best interest rate and EMI amount on your housing finance.
How to reduce the home loan interest burden?
As various factors contribute to home loan interest rate determination, interest accumulation on the loan amount is consequent to the rate availed. Adopt a few strategies to check the interest burden on your home loan for affordable repayment over the tenor. Take a look.
A. Select a short tenor for repayment
Home loans are long-term advances extending up to 30 years to make repayments affordable for borrowers. An extended tenor also means an interest rate levied for more years and a substantial interest burden.
Opt for a shorter tenor to keep the interest accumulation in check as a lesser number of years ensures interest is levied for a limited period. Use a home loan EMI calculator to compare different tenor options and select a suitable repayment period that helps reduce the total interest.
B. Opt for a balance transfer facility
A home loan balance transfer facility allows you to switch your outstanding loan amount to a financial institution offering a reduced home loan interest rate. The refinancing facility from Bajaj Housing Finance Limited also comes with high-value top-up loans borrowers can utilise to fulfil diverse funding needs due to zero end-use restrictions.
Along with affordable home loan interest rates and reduced interest burden, the balance transfer facility also offers EMI holidays for up to 3 months for convenient repayment and improved management of finances.
C. Request annual EMI revisions
Borrowers can also opt for annual EMI revisions with each increase in income or a salary hike as higher EMIs mean a quick reduction of the outstanding loan liability. Early repayment of the principal also cuts down the loan tenure and helps reduce the total interest accumulation. Home loan borrowers can ideally increase their EMIs payable by 5% with every 10% increment in income.
D. Prepay with any lump sum available
Prepayment is another useful facility to utilise for an overall reduction in home loan interest burden. Opt to part-prepay your home loan at any time before the tenor ends with an available lump sum amount. Part-prepaying helps reduce the outstanding loan principal and limits the overall interest accumulation.
Borrowers can also choose to foreclose the loan account altogether with sufficient fund availability to cut down any new interest accumulation on the outstanding principal.
Bajaj Housing Finance Limited extends both the prepayment facilities on floating rate home loans at nil charges to increase borrower affordability.
Other ways to limit the interest outgo include making a higher down payment, negotiating with the lender, and documenting all sources of income to secure a competitive home loan interest rate.
Housing loan interest rate FAQs
How to check total interest payable for my housing loan?
You can check your home loan interest with the help of a Home Loan EMI Calculator. Input your loan amount, current home loan interest rates, and tenor to check the total interest payable over the course of the loan.
Alternatively, you can even calculate the amount manually with the below formula.
EMI = (P * R * (1 + R)^N) / ((1 + R)^N - 1]
Here, ‘P’ stands for Principal, ‘R’ for the interest rate, and ‘N’ for the tenor (months).
How is the home loan interest calculated?
To calculate payable interest amount on a home loan, use a home loan EMI calculator that lets you accurately calculate your monthly instalments or EMIs for the loan. You only have to enter your housing loan interest rate, principal amount, and tenor to calculate the EMI.
What are the current home loan interest rates?
The current lowest home loan interest rates offered by Bajaj Finserv are:
Fixed-rate of interest:
Salaried Customers - 6.70%* onwards
Self-employed customers - 8.25%* to 14.00%
The current promotional home loan interest rate for salaried customers (For New) is 6.70%* onwards.
Which interest rate is better?
There are two types of interest rates you can choose from - fixed or floating interest rates.
Fixed Rate: Fixed-rate home loans enable you to plan your repayment more easily. Your EMIs remain constant throughout the tenor.
Floating Rate: 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 interest rates is zero charges on foreclosure or part-prepayment.
What is the lowest home loan interest rate for a home loan?
The lowest home loan interest rate offered by Bajaj Finserv is 6.70% for salaried customers.
How to reduce home loan interest rates burden?
You can reduce the home loan interest burden in the following ways:
Avail of 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.
Why should you choose Bajaj Finserv Home Loan?
Some of the reasons why you should choose Bajaj Finserv Home Loan:
By clicking on the ‘I Agree’, the applicant(s) hereby agree and acknowledge that each applicant
I/We declare that all the particulars and information and details provided/to be provided herein are true, correct, complete and up-to-date in all respects and that I/we have not withheld any information whatsoever.
I/We hereby expressly consent and authorise Bajaj Housing Finance Limited (‘BHFL’) and/or its representatives/agents to send me/us any communication regarding this application and/or any products/services offered by BHFL and its group companies using various communication channels, such as, telephone calls/ SMS/ bitly/ bots/ emails/ post etc. The use of information indicated herein by BHFL or any of its any of its subsidiaries, affiliates or associate companies shall not amount to violation of any of my/our privacy or confidentiality rights or privileges. I/We accord our consent unconditionally, notwithstanding the grant of loan facility, its rejection by BHFL, or upon its repayment and authorise BHFL to use the said information. I/We have no objection to give the documents required as per the KYC guidelines.
I/We do also authorize BHFL for any disclosure at any time of any information relating to me/mine/us/our loan/facility, including but not limited to repayment history, defaults in payment to Credit Information Companies (‘CIC’) and/or other Regulatory or other authorities as may be deemed fit. I/We agree not to hold BHFL responsible for such disclosure.
I/We agree that, we shall submit, sign, and execute all such loan agreements and such other documents as may be prescribed/ required by BHFL at any point of time and the applicable stamp duty with respect to such documents shall be payable by me/us. I/We fully acknowledge & understand that, the grant of the loan is at the sole discretion of BHFL and that BHFL reserves the right to reject my/our loan or approve the loan amount to an amount lesser than that applied for, without assigning any reason whatsoever. I further acknowledge that the Mortgage Origination Fees given by me/us is non-refundable and in case my/our application stands rejected, I shall not seek refund of the same from BHFL.
I/We agree that, BHFL may either by itself or through its authorised representatives or agents, conduct necessary investigations and seek/receive information from any person/authority/ company/CIC or such others as it may deem fit in the process of sanction of this loan. I/We undertake to furnish any additional information/documents that BHFL may require/request for at any point of time. I/We confirm that no insolvency proceedings or suits for recovery and/or any criminal proceedings have been instituted or are pending against me/us.
The loan will be provided to me/us only upon the satisfaction of the internal credit and risk parameters of BHFL, including but not limited to, underwriting, type, technical valuation and legal clearance of the property.
This letter of offer shall stand revoked and cancelled and shall be absolutely null and void if: (a) there are any material changes in the proposal for which this loan facility is, in principle, sanctioned; (b) any material fact concerning the my/our income, or ability to repay, or any other relevant aspect of the my/our proposal on the application for loan is suppressed, concealed or not made known to BHFL; (c) any statement made herein or in the loan application is found to be incorrect or untrue.
I/We agree and confirm that BHFL shall not be obliged to grant and continue any credit facility, if it is apprehended that the sanction terms are not or may not be met to the satisfaction of BHFL. Further, BHFL may, absolutely and unconditionally, reduce, revoke, cancel and/or modify any undrawn amount (in whole or part), if any, from the Sanctioned amount, at its discretion, at any time, without giving any prior notice to me/us or without assigning any reasons thereof.
I/We hereby agree and acknowledge that I/we (i) am/are at least 18 years of age, (ii) can understand, read and write in the English language, (iii) have read and understood the terms and conditions contained herein in relation to the Loan and (iv) agree to be bound by such terms and conditions contained herein in relation to the Loan.
I/We hereby agree that my/our action of entering the one-time password sent by the Lender and clicking the ‘I Accept’ button, constitutes a valid acceptance by me/us of the terms and conditions contained herein in relation to the Loan and is binding and enforceable on me/us.