Can Bajaj Home Loan Interest Rate Make Repayment Easy to Manage?

Bajaj Finance is a reputed private lender offering a wide suite of lending products such as home loans. Recognizing that a sizeable population is still in the search of their own home, the noted non-banking financial company has spread its home loan operation  to make it happen without any fuss. The loan bears interest rate on which the quantum of EMI and other repayment variables largely depend on. So, what is the Bajaj Home Loan Interest Rate and how will it impact your journey? The article will tell you the answer. Let’s get started without any delay.

What is Bajaj Finance Home Loan Interest Rate 2019?

Bajaj Finance offers home loans to both salaried and self-employed at different interest rates. The rates are benchmarked to the floating reference rate of 20.90%. Salaried and self-employed can get loans at interest rates of 9.05%-10.30% and 9.35%-11.15% per annum. The interest rates shown above also vary according to the loan amount one applies for.

Bajaj Finance Home Loan Calculator

The term calculator with respect to home loan can have broader connotations. There are different calculators pertaining to home loan eligibility, EMI and amortization. The eligibility is calculated based on the income you earn, the value of the property you want to buy. Bajaj would want to ensure that the proposed loan EMI does not constitute more than 60% of the net monthly income (NMI) at the same time.

The calculator also helps you compute the Equated Monthly Installment (EMI), which combines a portion of both interest and principal towards a loan. You just need to enter the loan amount, interest rate and tenure in Bajaj Finance Home Loan EMI Calculator to derive the installments. You can also get to know the total interest payable over the course of a loan, which can stretch for a maximum of 30 years.

Effect of Loan Amount, Interest Rate & Tenure on EMI

You read above as to how the EMI calculator helps you compute the installments on the back of three factors - loan amount, interest rate and tenure. Now, it’s time to check the effect of these factors individually on the EMI. Greater the loan amount, higher will be the EMI and vice-versa. Needless to speak of, a higher rate of interest would lead to greater EMI and a lower one leads to a lesser amount of installment. The tenure bears an interesting relationship by leading to lesser EMI when the loan runs for a long time. However, the extent of the interest payment can be a lot more than you may expect. Therefore, it’s advisable to service the loan for a relatively shorter tenure to rein in the outflow of interest. However, the EMI will increase with a shorter tenure.  You can pay the increased EMI by doing a bit of rejig in your monthly routine. The increase in the income year-on-year would also help you do so with ease.

Does the EMI Remain Same Throughout?

Bajaj Home Loan Interest Rate would keep changing with time and can lead to different repayment scenarios. There can be variation in interest and principal portions of the EMI throughout the course of a loan. Despite that, the EMI can remain the same throughout the loan tenure.

How Shall You Apply for Bajaj Finance Home Loan?

You can apply for a home loan on the website of Bajaj Finance. Click on ‘Apply Now’ upon reaching the home loan page of the lender. Mention the details accurately before submitting the application. Bajaj would check the details thoroughly before approving the loan.