Bajaj Housing Finance Limited Loan Terms & Conditions

Welcome to the comprehensive guide on the loan terms and conditions offered by Bajaj Housing Finance Limited (BHFL). Whether you are considering a home loan, loan against property, or a construction finance, this page explains the key provisions you need to understand before applying.

1. Eligibility Criteria

BHFL assesses eligibility on the basis of the following factors:

• Age: Minimum 21 years, maximum 65 years at the time of loan maturity.
• Residential Status: Indian citizen, NRI, or PIO with a valid PAN.
• Income: Minimum monthly net income of 15,000 for salaried applicants; selfemployed candidates must show a net profit of at least 2,00,000 per annum.
• Employment: Minimum 2 years with the current employer for salaried borrowers; selfemployed applicants should have at least 3 years of continuous business operation.
• Credit History: A satisfactory credit score (typically 750 or above) is preferred.

2. Types of Loans

BHFL provides a range of housingrelated financing options:

• Home Purchase Loan For buying a new or resale residential property.
• Home Construction Loan To fund the construction of a house on owned land.
• Home Improvement Loan For renovation, extension, or repair works.
• Loan Against Property (LAP) Secured loan against residential or commercial property.
• Balance Transfer Loan Transfer an existing home loan to BHFL for better rates.

3. Loan Amount & Tenure

Maximum loan amount and tenure vary with the loan type and borrower profile:

4. Interest Rates

BHFL offers both floating and fixed interest rate options:

• Floating Rate: Linked to the RBIs repo rate plus a spread (generally 1.5% 3%). The rate is reviewed periodically.
• Fixed Rate: Predetermined rate for the entire tenure, usually 8% 11% per annum depending on loan size and tenure.

Rate eligibility may depend on the applicants credit score, loantovalue (LTV) ratio, and repayment capacity.

5. Processing & Documentation Charges

Applicable charges are as follows (subject to change):

• Processing Fee 0.30% to 0.50% of the sanctioned amount (minimum 5,000). This fee is refundable if the loan is not sanctioned.
• Legal & Technical Charges Typically 0.10% of the loan amount or as per actual cost incurred.
• Valuation Fee Charged by an approved thirdparty valuer; usually 3,000 5,000.
• Prepayment Penalty Up to 2% of the prepaid amount if repayment occurs before the agreed lockin period (generally 1 year).
• Foreclosure Charges 1% of the outstanding balance if the loan is closed before completion of lockin period.

6. Repayment Structure

All BHFL loans follow the standard EMI (Equated Monthly Installment) model, calculated using the formula:

EMI = P r (1+r)^n / [(1+r)^n 1]

where:

• P = loan amount
• r = monthly interest rate (annual rate 12)
• n = total number of months

Borrowers can also opt for the following repayment options, where permitted:

• Stepup EMI: Lower EMIs in initial years, increasing later.
• PartPrepayment: Ability to make extra payments without penalty after the lockin period.
• Balance Transfer: Transfer an existing housing loan to BHFL for a reduced rate.

7. Security & Collateral

BHFL requires the following securities based on loan type:

• Mortgage of Property: Property being financed or any other residential/commercial property owned by the borrower.
• Hypothecation of Savings/Deposits: For salaried borrowers with adequate BHFL Savings accounts.
• Guarantor: In certain cases, especially for selfemployed borrowers, a guarantor with satisfactory credit may be required.

8. Disbursement Process

1. Sanction Letter issued after document verification.
2. Signing of loan agreement and security documents.
3. Submission of property-related documents (title deed, approved plan, NOC, etc.).
4. Disbursement in tranches (for construction loans) or as a lump sum (for purchase loans) after verification.
5. Postdisbursement monitoring by BHFLs project team (for construction).

9. Default & Recovery

If a borrower defaults, BHFL may take the following actions:

• Issue a demand notice after 30 days of missed payment.
• Impose a penalty of 2% per month on the overdue amount.
• Initiate legal proceedings to enforce the mortgage.
• Sell the secured property through auction to recover dues.

BHFL also offers restructuring options for genuine hardship cases, provided the borrower contacts the loan officer before default.

10. Important Clauses

• Change in Interest Rate: For floating rate loans, BHFL may revise the rate in line with RBI policy changes after providing 30 days notice.
• Insurance Requirement: Mandatory life insurance of the borrower covering the outstanding loan amount; property insurance is also mandatory.
• Assignment Clause: BHFL may assign the loan to any of its subsidiaries or thirdparty lenders without affecting borrower rights.
• Governing Law: The loan agreement is governed by the laws of India and any dispute will be settled in the courts of Mumbai.

11. How to Apply

Applicants can initiate the process through any of the following channels:

• Visit the nearest BHFL branch with identity, income, and property documents.
• Online application portal bajajhousingfinance.com.
• Call the 247 loan assistance helpline: 18001234567.

After submission, the bank typically completes verification and sanction within 710 working days, subject to document completeness.

12. Frequently Asked Questions

Q1. Can I refinance my existing home loan with BHFL?

A: Yes, BHFL offers balance transfer facilities with competitive rates. The existing lenders foreclosure penalty is borne by the borrower.

Q2. Is prepayment allowed before the lockin period?

A: Prepayment is permitted but incurs a penalty of up to 2% of the prepaid amount if made before the first 12 months.

Q3. What happens if my property value declines?

A: BHFL monitors the LTV ratio periodically. If the value falls below agreed limits, the bank may request additional security or partial repayment.

Q4. Are there any benefits for women borrowers?

A: BHFL provides a marginally lower interest spread (0.25% lower) for female applicants meeting all other eligibility criteria.

13. Contact Information

For clarification on any clause or to discuss your eligibility, reach out to BHFLs customer care:

• Phone: 18001234567 (MonFri, 9 AM 6 PM)
• Email: homefinance@bajajhousingfinance.com
• Address: BHFL Head Office, B-75, G Block, Bandra Kurla Complex, Mumbai 400051

Understanding the loan terms and conditions before signing the agreement helps you make an informed decision and avoid unwelcome surprises later. Use this guide as a reference and consult a BHFL representative for personalized advice.