Homeownership is a dream for many, but with it comes the responsibility of securing a home loan. When choosing a home loan, many options are available in the market. Two of the most popular choices among home buyers in India are Bajaj FinServ home loan and Axis Bank home loan.
Bajaj Finserv vs Axis Bank Home Loan
Bajaj FinServ is a non-banking financial company (NBFC) that offers a wide range of financial products and services, including home loans. The company has a strong reputation in the market and is known for its competitive interest rates and flexible repayment options.
On the other hand, Axis Bank is one of the leading private-sector banks in India. Both banks offer a range of home loan options with different interest rates, terms, and conditions.
We’ll compare the interest rates, processing fees, and other terms and conditions offered by each bank to help you decide which option is better.
One of the most significant differences between Bajaj FinServ home loan and Axis Bank home loan is the interest rate. The interest rate determines how much you’ll pay in interest throughout the loan and can significantly impact your monthly payments. Both Bajaj Finserv and Axis Bank offer competitive rates.
Bajaj Finserv home loan offers an interest rate starting from 8.60% p.a., and Axis Bank home loan offers an interest rate starting from 8.75% p.a.
However, the exact rate of interest will depend on various factors, such as the type of home loan product, the loan amount, and the borrower’s credit score.
Processing fees, also known as administrative fees, are charges imposed by banks and other financial institutions for processing and approving a loan application. These fees can vary significantly between different financial institutions and loan products. You must pay banks a fee to deal with your home loan application. It is a one-time fee usually paid upfront – that is, you must pay it out of your pocket to the bank instead of being deducted from your loan amount.
Usually, the banks will charge the processing fee after your application is approved. Bajaj Finserv home loan charges a processing fee of 0.50%, while Axis Bank charges a fee of 0.50% to 1% of the loan amount. It means that if you apply for a home loan of Rs. 50 Lakh, Bajaj Finserv would charge a processing fee of Rs. 25,000, while Axis Bank would charge anywhere between Rs. 25,000 to Rs. 50,000.
In addition, Bajaj Finserv also charges a pre-payment fee of 2% if the loan is prepaid before the completion of 3 years, which means that if you prepay the loan, you will have to pay 2% of the outstanding amount as pre-payment charges. Axis Bank has no such charges.
When comparing home loan options, the loan amount is an essential factor. Bajaj Finserv home loan offers loan amounts up to Rs. 3.5 crores, while Axis Bank home loan offers loan amounts up to Rs. 5 crores. Axis Bank may be your better option if you are looking for a larger loan. However, it’s essential to remember that the loan amount offered may also depend on factors such as your income and creditworthiness.
Regarding eligibility, Bajaj Finserv home loans are available for both salaried and self-employed individuals. The minimum age required to apply for a Bajaj Finserv home loan is 21 years, and the maximum age at maturity is 70 years. The minimum loan amount offered by Bajaj Finserv is Rs. 3 Lakhs, and the maximum loan amount is Rs. 10 Crores.
On the other hand, Axis Bank home loans are also available for both salaried and self-employed individuals. The minimum age required to apply for an Axis Bank home loan is 21 years, and the maximum age at maturity is 70 years. The minimum loan amount offered by Axis Bank is Rs. 3 Lakhs, and the maximum loan amount is Rs. 3 Crores.
In terms of documentation, both the Bajaj Finserv home loan and Axis Bank home loan require similar documents for the home loan application process. These include:
- Identity proof
- Address proof
- Income proof
- Property documents
Additionally, self-employed individuals may be required to provide additional documents such as financial statements and tax returns.
Regarding loan disbursal, Bajaj Finserv is known for its quick loan disbursal and Axis Bank also has a good reputation. The loan disbursal process is usually quicker for pre-approved home loans as the lender already has the required information on file.
Regarding customer service, both Bajaj Finserv and Axis Bank offer 24/7 customer support and online account management. However, Axis Bank has a more extensive branch network and ATMs across the country than Bajaj Finserv, which could make it more convenient for some customers to access banking services.
When it comes to repayment, both Bajaj Finserv and Axis Bank home loans offer flexible repayment tenures of up to 30 years. Borrowers can choose a repayment plan that suits their financial situation.
Additionally, both Bajaj Finserv home loan and Axis Bank home loan offer a balance transfer facility, which allows borrowers to transfer their existing home loan to the respective lender at a lower interest rate. It can help borrowers save significant money on their home loans. It is important to note that the EMI and the total interest payment may vary depending on the interest rate offered, repayment tenure and the loan amount availed.
In conclusion, both Bajaj Finserv and Axis Bank are reputable institutions that offer competitive home loan options. Both lenders offer a range of home loan products, flexible repayment tenures, balance transfer facilities and good customer service.
However, the best option for you will depend on your specific needs and requirements. If you need a higher loan amount, an Axis Bank home loan may be a better choice, while a Bajaj Finserv home loan may be a better option if you’re looking for slightly lower interest rates. Always read the fine print and understand the terms and conditions of the loan before signing the loan agreement. It is always better to consult a financial advisor or a loan expert for guidance on this matter.
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