Fix your home loan interest today

Follow these steps to fix your home loan interest today
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Fix your home loan interest today
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3 min
05/July/2024

How to fix Home Loan interest and benefits?

Fixing your home loan interest rate provides stability and predictability in your monthly repayments. Methods to fix it include choosing a fixed-rate loan at the outset or switching from a floating rate to a fixed rate. The benefits include easier budgeting, protection from interest rate hikes, and consistent monthly payments.

What is the fixed interest rate in a Home Loan?

In a fixed-rate home loan, the interest rate is set at the time of taking the loan and remains constant throughout the loan term. Variants exist that allow you to fix your interest rate for specific periods such as 2, 3, or 10 years, with the lender having the right to reset the rate at any time. This type of loan offers predictability, allowing you to accurately budget and plan your finances, as you know your repayments from the beginning. While fixed-rate loans typically have higher interest rates compared to floating-rate loans, they provide a measure of certainty in your financial commitments.

Benefits of fixed Home Loan interest

Opting for a fixed interest rate on your home loan has several benefits. First, it offers stability as the interest rate remains unchanged, protecting you from market fluctuations. This allows for precise financial planning and budgeting, as your monthly repayments will stay consistent. Additionally, it provides peace of mind, as you won’t be affected by rising interest rates during the loan tenure. While fixed-rate loans might come with a slightly higher interest rate compared to floating rates, the predictability they offer can outweigh this drawback, making them an attractive option for borrowers seeking certainty.

How to fix Home Loan interest rate online?

Fixing your home loan rate of interest online is a simple process. Login to your account with Bajaj Finserv and raise a request for fixing your home loan interest rate.

Once you have raised a request, you will receive a call from your service agent who will be able to help you to fix your Home Loan interest rate

How to fix Home Loan interest rate offline?

  1. Visit branch: Go to the nearest Bajaj Finserv branch.
  2. Consult representative: Speak with a representative about fixing your home loan interest rate.
  3. Submit request: Fill out any required forms and submit your request in person.

These methods ensure you can conveniently fix your home loan interest rate, whether you prefer online or offline processes.

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
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  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-qualified limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

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Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

Which is better: floating or Fixed home loan interest rate?Ref: https://www.hdfc.com/blog/home-finance/opt-fixed-rate-floating-rate-home-loan

Choosing between floating and fixed home loan interest rates depends on your financial situation and market expectations:

  • Fixed Rate Home Loan:
    • Ideal if you prefer consistent EMIs and can manage payments within 25-30% of your monthly income.
    • Suitable when you anticipate rising interest rates and want to lock in the current rate.
    • Beneficial if current rates are lower than in the past and you're comfortable with locking in that rate.
  • Floating Rate Home Loan:
    • Good if you expect interest rates to decline, as your loan's rate will decrease too.
    • Suitable for those who prefer adjusting to market rates.
    • Often set at a lower rate initially, providing short-term savings on interest costs.
Is NOC required for a home loan? Ref: https://www.sbirealty.in/blog/importance-of-noc-after-paying-off-your-home-loan

Yes, an NOC (No Objection Certificate) is essential for a home loan. It legally confirms that the bank has no lien on your property, and you have a clear title. Without an NOC, the property remains registered under the bank, even if you have repaid the loan in full.

Is it good to repay a home loan early?

Repaying a home loan early can be beneficial as it reduces the total interest paid over the loan's tenure. However, consider any prepayment penalties and evaluate whether the funds could be better utilised elsewhere, such as in higher-return investments.

What happens if a home loan EMI is missed? ref: https://www.bankofbaroda.in/banking-mantra/loans-borrowings/articles/what-are-the-consequences-of-missing-home-loan-emi

Missing a home loan EMI has two major consequences:

  1. Credit Score Impact: Your CIBIL score will drop with each missed payment, affecting your creditworthiness.
  2. Increased EMI Cost: The next month's EMI will include penalties and additional interest, making it more expensive.

Understanding these implications can help you manage your loan repayments better and avoid financial difficulties.

Can we prepay home loan interest? ref: https://www.homeloanexperts.com.au/fixed-rate-loans/interest-in-advance-home-loan/

Yes, you can prepay home loan interest through an interest-in-advance home loan. This involves locking in the interest rate at a discounted rate for a set period, usually 12 months, and paying the entire year's interest upfront in one payment. By doing so, you can claim the entire following year's interest as a tax deduction in the current tax year. This arrangement can provide significant tax benefits and help manage your financial planning more effectively.

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