Home Loan Interest Rates

Bajaj Finance offers home loan interest rates starting from 7.50% p.a.*  for salaried and 8.05% p.a.* for self-employed applicants in India. Whether you are purchasing a new home, constructing your dream house, or transferring your existing housing loan from another lender, Bajaj Finance's rates are structured to keep long-term repayment costs down. 

The repo rate is 5.50%, effective from October 2026.

Compare Bajaj Finance's home loan interest rates for salaried, self-employed, and professional applicants below:

Interest rates last reviewed or updated: 30th October 2026

Bajaj Finance offers home loans with competitive interest rates starting from 7.50% p.a.*. Here are some key features of Bajaj Finance Home Loan:

• High-value loan amount: Get a home loan of up to Rs. 15 crore* to finance your property purchase.
• Flexible repayment tenure: Benefit from extended repayment tenure of up to 32 years* and get affordable monthly EMIs.
• Convenient online application: Apply for a home loan online through a streamlined application process.
• Easy EMI planning: Use the home loan EMI calculator to estimate monthly payments and total interest costs before applying.

Last updated: 30th October 2026

Your CIBIL Score reflects your credit repayment history and helps lenders assess your creditworthiness. A higher score indicates responsible borrowing and timely repayments, which can help you secure a lower home loan interest rate. A lower score may lead to higher interest rates as lenders assess the increased lending risk.

Bajaj Finance offers home loan interest rates starting from 7.50% p.a.* and considers a CIBIL Score of 725 or above ideal for applicants. However, meeting this score requirement does not guarantee the starting interest rate.

For example: Rahul, a 32-year-old salaried professional in Pune, earns Rs. 90,000 per month and has a CIBIL Score of 780. He applies for a Rs. 40 lakh home loan. Despite his strong credit score, he already pays Rs. 25,000 in monthly EMIs towards other loans. These existing obligations reduce his available income for home loan repayments and influence the lender's assessment.

Your CIBIL Score is only one factor. Bajaj Finance also considers your monthly income, existing EMIs, employment stability, loan amount, property details, and repayment capacity when determining your eligibility and applicable home loan interest rate. Therefore, even applicants with similar CIBIL Scores may receive different interest rates based on their financial profiles.

Home loan interest is generally calculated using the reducing balance method. Under this method, lenders charge interest on the outstanding principal rather than the original loan amount. As you repay your loan through Equated Monthly Instalments (EMIs), the principal decreases, reducing the interest charged over time.

Formula for monthly interest: Monthly interest = Outstanding principal × (Annual interest rate ÷ 12)

For example, consider a home loan of Rs. 30 lakh at an interest rate of 7.50% p.a. for 20 years.

During the initial years, a larger portion of each EMI goes towards interest. As the outstanding principal decreases, more of your EMI goes towards repayment of the principal.

You can use a home loan EMI calculator to estimate your monthly instalments and total interest payable. The actual calculation may vary based on your lender's daily or monthly reducing balance method, interest rate changes and repayment dates.

Lenders price each home loan based on the risk they see in it. These are the main factors that shape the rate you are offered:

• Credit score: A CIBIL Score of 750 or above signals strong repayment behaviour and usually qualifies you for the lowest rates on offer. A lower score can mean a higher rate or a stricter approval.

  
  

• Loan type: Most home loans carry floating rates linked to an external benchmark such as the RBI repo rate. When the repo rate changes, your interest rate and EMI (or tenure) can change too. Fixed-rate options, where available, are usually priced higher.

  
  

• Employment and income: Salaried applicants with stable jobs and steady income are often seen as lower risk and may get better pricing. Self-employed applicants may be priced slightly higher, though strong business income and a clean repayment record can narrow the gap.

  
  
• Loan amount and down payment: A larger down payment lowers the loan-to-value (LTV) ratio, which reduces the lender's risk and can help you get a better rate. Very large loans may attract a different risk spread.

Home loan interest rates in India fall into two main categories: fixed and floating. Knowing how each one works helps borrowers pick a repayment structure suited to their financial goals, appetite for risk, and what they expect their income to look like down the line.

The Reserve Bank of India (RBI) uses the repo rate to influence lending rates across the economy. The repo rate stands at 5.50% as of October 2026, following an increase of 0.25 percentage points.

For home loans linked to the repo rate, changes in this benchmark affect your floating interest rate. Here is how it works:

• When the repo rate increases: Your home loan interest rate may rise, increasing your monthly EMI or extending your repayment tenure.
• When the repo rate decreases: Your interest rate may fall, reducing your EMI or shortening your repayment tenure.

• When the rate resets: Changes take effect according to your lender's interest rate reset schedule, rather than immediately after an RBI announcement.

  
  

The impact on your Bajaj Finance Home Loan depends on the benchmark and reset terms specified in your loan agreement.

What options do you have when interest rates change?

Under RBI guidelines, borrowers with eligible floating-rate home loans have the following options:

• Switch to a fixed interest rate: Request a switch according to the lender's applicable policy and charges.
• Adjust your EMI or tenure: Choose a revised EMI, an extended repayment tenure, or a combination of both.
• Make part-prepayments or foreclose: Prepay your loan in part or full at any time. No prepayment charges apply to floating-rate home loans taken for non-business purposes. Charges may apply to business-purpose and fixed-rate loans, subject to applicable conditions.

• Receive rate-change updates: Your lender must communicate increases in EMI or tenure resulting from interest rate resets and provide periodic loan statements.

  
  

Reviewing these options helps you manage your monthly repayments and total interest costs when lending rates change.

Your home loan interest rate directly affects your monthly EMI and total borrowing cost. The table below compares EMIs for a Rs. 50 lakh home loan across different interest rates and repayment tenures. Even a 0.5% increase in the interest rate can add significantly to your total repayment.

EMI figures are indicative and calculated using the standard reducing-balance EMI formula. Actual EMIs depend on the applicable interest rate and loan terms.

For example: At 7.50% p.a., a Rs. 50 lakh home loan over 20 years has a monthly EMI of approximately Rs. 40,280, with a total repayment of Rs. 96.67 lakh. At 8.50% p.a., the EMI increases to Rs. 43,391, and total repayment reaches Rs. 1.04 crore. This means you pay approximately Rs. 7.47 lakh more over the same tenure due to a 1% higher interest rate.

Comparing home loan interest rates before applying helps you understand the long-term cost of borrowing and choose a repayment plan that fits your budget.

Fixed and floating home loan interest rates affect your monthly EMIs and total borrowing costs differently. Understanding their advantages and limitations helps you compare repayment options based on your financial needs.

What about hybrid interest rates? Some lenders offer hybrid home loans with an initial fixed-rate period followed by a floating rate. This provides predictable EMIs initially, while future repayments depend on interest rate movements.

Before applying, compare the offered interest rates, total repayment costs, reset conditions, and applicable charges. Also, assess how a change in monthly EMIs would affect your household budget.

You can reduce your total home loan interest cost by lowering your outstanding principal, choosing suitable repayment terms, or securing lower interest rates. The right approach depends on whether you are applying for a new home loan or already repaying one.

Here are five ways to manage your interest costs:

• Make a higher down payment: Pay a larger amount upfront to reduce your home loan requirement. A smaller principal means less interest payable over the loan tenure.
• Part-prepay your existing loan: Use surplus savings or bonuses to repay part of your outstanding principal. This reduces future interest costs and can shorten your repayment tenure.
• Increase your monthly EMI: If your income increases, consider raising your EMI to repay the principal faster. Check that the higher payment fits your monthly budget.
• Choose a shorter repayment tenure: A shorter tenure increases your monthly EMI but reduces the total interest payable compared with a longer tenure at the same rate.
• Consider a home loan balance transfer: If you already have a home loan, compare your existing rate with the home loan interest rates offered by Bajaj Finance. Transferring your outstanding loan at a lower interest rate can reduce borrowing costs. Compare processing fees, transfer charges, and revised repayment terms to assess your actual savings.

Applying for a home loan with Bajaj Finance is a straightforward online process. Before starting your application, keep important documents such as your KYC documents, proof of income, and property details ready. Ensuring that all information is accurate can help avoid delays during verification and approval.

• Step 1: Visit the Bajaj Finance Home Loan page and click on the 'APPLY' button.
• Step 2: Enter your full name, mobile number, and employment category.
• Step 3: Select the loan option that best matches your requirement, such as a fresh home loan, balance transfer, or top-up loan.
• Step 4: Verify your mobile number by generating and submitting the one-time password (OTP).
• Step 5: After successful verification, provide details such as your monthly income, desired loan amount, and property status.
• Step 6: Enter additional information including your date of birth, PAN, and other details requested based on your employment type.
• Step 7: Review the information entered and click the 'SUBMIT' button to complete the application process.

Once your application is submitted, a Bajaj Finance representative will contact you to guide you through document verification, eligibility assessment, and the next stages of loan processing. Keeping all required documents readily available can help speed up the approval process.