When someone looks to take a home loan to buy his dream home, there are a few important factors that people must account for. One of those important factors is the interest rate on your loan facility. A lot of individuals who don’t realize the importance of it and don’t look for the most suitable option often regret later at the time of repayment. When we talk about home loan facilities in India, there are several lenders that provide this to individuals who want a pool of funds sot that they can buy a roof over their heads.
Bajaj Finance is also one such esteemed non-banking financial company of India that gives a range of exciting services to the customers. In this article, we will talk about everything about the Bajaj Finance Home Loan Interest Rate and how does it impact your monthly installment amount and other things. So, keep reading the article.
What is Bajaj Finance Home Loan Interest Rate?
Before getting on to the impact of interest rate, let’s know about what is firs. Interest Rate is the rate decided by the lender that will be charged at the rate per annum on the amount you’re borrowing. It may vary from one lender to lender and depends on your overall profile, and CIBIL scores. Generally, you can choose from the two options of the Bajaj Finance home loan interest rate which are fixed and floating.
In the fixed option, your interest rate will be fixed for the tenure of your loan. While, in the floating option, the rate will keep changing according to the RBI Policy and current economic conditions. You can choose the floating rate of interest when you expect the rates to come down a bit in the upcoming time.
Also, you can change from fixed to floating or vice versa at any point during your loan tenure by paying a nominal fee. So you don’t have to worry about shifting from one type to another.
Why it is important to choose the Low Home Loan Interest Rate?
You would always hear around yourself about how it is important to choose the lowest important rate possible. But have you given some thought about it? Don’t worry we will tell you! Bajaj Finance home loan interest rate directly impacts your EMI. EMI is the monthly installment towards the repayment of the loan. So, when you will choose a lower home loan interest rate, you will automatically have to pay a lower EMI amount because EMI also has the interest portion in it. Let us give you an example.
Suppose that you want to take a home loan amount for a period of 10 years.
With an interest rate of 12% per annum, your EMI would be INR 57,388.
While at an interest rate of 8% per annum, your EMI would be INR 48,531.
So, you could see, the difference is almost INR 10,000. A small difference in the rate of interest could make you save INR 10,000 in a month. You can utilize this amount in other investment options such as Mutual Fund. Because this amount would be going from your monthly income, so this would be removing a lot of burden from your shoulders when you choose a lower interest rate.