Bajaj Finserv, through its subsidiary, Bajaj Housing Finance Limited, offers home loans starting at interest rate of 6.75%*. The attractive structure of fees and charges let you lower your EMIs to Rs.563/lakh*. With minimal documentation, you can get funds up to Rs.3.5 crore to buy, construct, or renovate your home.
Besides, you can 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 top-up loan up to Rs.50 lakh. What’s more, it 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 tenure of up to 20 years, for interest rate starting at 6.75%*, to determine the EMIs that suit your repayment capability the best. 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.
Interest rates on home loans are levied under two different types, fixed and floating. Take a detailed look at both types.
Fixed home loan interest rate remains constant for the entire loan tenure. It allows borrowers to estimate their total repayment liability and interest outgo at the beginning of the loan tenure. Availing 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, borrowers can ensure that they avail the 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.
Unlike fixed rates, floating home loan interest rates are variable and change over the loan tenure due to multiple contributing factors. Based on the benchmark rate linked to housing finance, the floating interest rate on home loans increases or reduces.
Borrowers can opt for a floating interest rate on home loans when the market changes indicate a trend of falling rate.
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 their suitability, borrowers can opt to switch from fixed to floating interest rate and vice versa during their loan tenure. However, fixed rates are usually 1-2.5% higher than floating interest rates.
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.
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.
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 EMI Calculator is the simplest option and guarantees error-free results every time. These are the steps to follow.
Several factors affect the interest rate on home loans, with competitive rates making repayment affordable in easy EMIs. 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 change in the instalment amount.
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 tenure. Take a look.
To calculate interest rate, use an interest calculator that lets you accurately calculate your monthly installments 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.
The current home loan interest rates offered by Bajaj Finserv are:
Fixed rate of interest:
One of the advantages of floating interest rate is zero charges on foreclosure or part-prepayment.
Some of the reasons why you should choose Bajaj Finserv Home Loan:
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