Business Wire India
Bajaj Housing Finance Limited (BHFL), a wholly owned subsidiary of Bajaj Finance Limited has reduced its Home Loan interest rate, bringing it down to 6.90%* and onwards. This announcement is sure to bring festive-season cheer to home loan borrowers and comes at a time when many require assistance to meet big-ticket expenses. The declining repo rate has in the recent past pushed the home loan interest rates in India down across the board and with the Bajaj Housing Finance Limited Home Loan, home buyers can now fulfil their housing needs more cost-effectively.

With a lower housing loan interest rate, borrowers benefit from smaller EMIs, less interest outgo, cheaper top-up loans, and can even consider a home loan balance transfer for increased affordability. The latest home loan interest rate revision is also bound to add impetus to the home loan market growth in India in the upcoming years.

Here’s how the reduction in the home loan interest rate to 6.90%* is to benefit borrowers.

Lower home loan interest and EMI payments
Home loan EMIs and the net interest payable are directly proportional to the home loan interest rate. Hence, securing the lowest home loan interest rate becomes imperative, as even a difference of 0.10% can add up to sizeable amount of housing loan interest, considering that home loans are of large amounts and are repaid over 20 to 30 years.

The effect of the reduction on the current home loan interest rates is better demonstrated with figures. Consider this table, generated with a home loan interest calculator, with the home loan interest rates today, that is, rates starting from 6.90%* onwards.

Loan amount	Tenor	Interest rate	EMI	Total interest
Rs.50,00,000	30 years	6.90%	32,930	68,54,803
Rs.50,00,000	30 years	7.00%	33,265	69,75,446
Rs.50,00,000	30 years	7.10%	33,602	70,96,575
Rs.50,00,000	30 years	7.50%	34,961	75,85,861
Rs.50,00,000	30 years	8.00%	36,688	82,07,764

Borrowers can now take larger home loans
An advantage of low-interest home loans is that borrowers can choose to avail higher sanctions. The reason is that the principal also directly affects the EMI and net interest payable. With a cheaper home loan interest rate, borrowers can balance the two to arrive at a manageable debt-to-income ratio. So, even though the principal increases, the EMI can remain same as the housing loan interest rate has dropped.

The prospects of a top-up loan are attractive
With Bajaj Housing Finance Limited offering Top-up Loans at rates marginally higher than the current home loan interest rates, availing funding over and above the Home Loan sanction becomes viable for many needs. Top-up Loans can be used for personal or business purposes, apart from housing needs, and since the new home loan interest rates start at 6.90%*, existing borrowers can opt for extra funding rather than take a new loan. The home loan top up interest rate available through Bajaj Housing Finance Limited promises to make the endeavour cost-effective.

Easy balance transfer for cheaper home interest rates
Borrowers with other lenders who wish to benefit from the new home loan interest rates can opt for a balance transfer. This facility is ideally more effective during the initial part of the tenor, when EMIs comprise mainly the interest. However, borrowers who have conducted a thorough cost-benefit analysis, accounting for the various balance transfer charges, may switch lenders to enjoy easier repayment.

With customers already being able to claim an annual home loan interest tax benefit and PMAY interest subsidies, the latest home loan interest rate reduction offered by Bajaj Housing Finance Limited adds to the financial incentives offered to prospective homeowners. New customers and existing borrowers on floating rate loans greatly benefit from such home loan interest rate cuts and to avail a Home Loan of up to Rs.3.5 crore customers can apply online today.
About Bajaj Housing Finance Limited

Bajaj Housing Finance Limited (BHFL) is a 100% subsidiary of Bajaj Finance Limited – one of the most diversified NBFCs in the country with 19 product lines across consumer, commercial and SME finance. Head quartered in Pune, Bajaj Housing Finance Limited offers finance to individuals as well as corporate entities for purchase, construction and renovation of homes or commercial spaces. It also provides loan against property for business or personal needs as well as offers working capital for business expansion purposes. It also offers finance to builders and developers engaged in construction of homes. The company enjoys highest long-term credit rating of AAA (Stable) by CRISIL and IND AAA (Stable) by India Ratings and highest short-term credit rating of CRISIL A1+ by CRISIL and IND A1+ by India Ratings.

*Terms and Conditions apply

To know more: https://www.bajajhousingfinance.in