Aadhar Housing Finance home loan interest rates are different for salaried and self-employed applicants. Aadhar Housing Finance offers home loans at 11.75% to 16.50% p.a. interest rate to salaried employees and 12.75% to 17% p.a. to self-employed individuals.
Aadhar Housing Finance Limited, previously known as DHFL Vysya Housing Finance Ltd, is an affordable housing loan service provider having a pan India presence. The highlight of Aadhar Housing Finance is that it caters to the informal sector that does not have proper access to banks and HFCs. It is because this section of people is unable to provide documentary evidence of their income generation.
Aadhar Housing Finance Limited, established in 2010, merged with DHFL Vysya on November 20, 2017. This merger enhanced the company's reach and made it accessible to almost all sections of society across India. The Company has more than 300 branches today, as it serves a client base of more than 133,000.
You can also Apply for Rs. 35 Lakh Home Loan EMI
Aadhar Housing Finance provides various Home Loan options for its clients from all walks of life. This Company has loan products for both the salaried employee and self-employed persons with income levels as low as 5,000 per month. The skilled artisans and professionals who do not have IT return to prove their income generation benefit the most from Aadhar Housing Finance Home Loans. The Company employs innovative methods to gauge their income levels. Hence, Aadhar Housing Finance is a preferred financing option for such customers.
Additional Info: Also check AnyRoR Gujarat Land Record
Target group |
|
Purpose |
|
Quantum of loan | A maximum amount of 1 Crore |
The margin on the Home Loan | 20% |
Rate of interest | Reasonable rates of interest |
Loan tenure | Flexible tenure up to 30 years |
You can also checkthe Documents Required For Home Loan
Aadhar Housing Finance is a non-banking housing finance company. Hence, it does not offer interest structures such as MCLR-linked rates or RLLR-linked structures. Aadhar Housing Finance follows its Retail Prime Lending Rate for deciding the Home Loan interest rate.
Presently, Aadhar Housing Finance offers Home Loan interest rate in the range of 11.75% to 16.50%.
Additional Info: Best Home Loan Interest Rates @6.70%
Type of Charge | Amount of Charges |
---|---|
Processing fee | 3,500 |
Administrative charges | 1.50% of the loan amount |
Subsequent technical verification | 500 (only in cases involving construction) |
Cheque bouncing charges | 500 per instance |
Penal interest on default | 1.50% of the default amount per month for the default period |
Cheque/ECS swapping charges | 500 |
No dues certificate charges | 500 |
Copy of documents | 500 |
Prepayment penalty |
|
Document retrieval | 2,000 |
Statement of account | 500 |
Conversion fee |
|
Loan cancellation | 1,500 |
You can also Apply for LIC HOUSING FINANCE Home Loan
Aadhar Housing Finance Limited offers facilities to calculate your Home Loan eligibility and EMI online.
Enter the details like loan amount, interest rate, and loan tenure to calculate the EMI of your Home Loan.
MyMoneyMantra offers similar EMI Calculator.
Aditya Birla Housing Finance is spread over the semi-urban and small towns in India. Hence, it is one of the ideal financial institutions to cater to PMAY borrowers. The National Housing Bank is the Central Nodal Agency for the Company to claim the subsidy amount.
Every PMAY borrower is eligible for an upfront interest subsidy. The subsidy depends on the type of borrower, the loan amount, and the rate of allowance.
Category of Borrower
The annual family income from all sources is the criterion that decides the type of borrower.
Subsidy Qualification
Subsidy Treatment
You can also Check Aadhar Housing Finance Home Loan EMI Calculator
Aadhar Housing Finance is an active player in PMAY. As it is, Aadhar Housing Finance caters to the informal sector. PMAY loans are similar to regular Home Loans in almost every respect. However, they have specific eligibility criteria. Secondly, there is an element of interest subsidy. Aadhar Housing Finance is controlled by the National Housing Bank in matters concerning subsidy claims.
All PMAY borrowers are eligible for interest subsidy depending on the category they belong to.
Category of Borrower | EWS/LIG | MIG-I | MIG-II |
---|---|---|---|
Loan amount permissible for calculating the subsidy | 6 Lakhs | 9 Lakhs | 12 Lakhs |
Rate of allowance | 6.50% | 4.00% | 3.00% |
The maximum amount of grant | 2.67 Lakhs | 2.35 Lakhs | 2.30 Lakhs |
Additional Info: Also check How to Apply for Pradhan Mantri Awas Yojana
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Aadhar Housing Finance offers the following different types of interest calculations:
The floating rates of interest bring the following benefits to the borrower:
The fixed rate of interest offers the following benefits:
The special/dual rate of interest gains significance during times when the borrower is unsure of the movements of the market rates.
Drawbacks of the floating rate of interest:
Drawbacks of a fixed rate of interest:
Drawbacks of special/dual rate of interest:
The Home Loan comes with an interest reset clause. This reset clause is at fixed, predetermined intervals. It implies that the rate of interest on the individual Home Loan does not change unless the rate is reset. Therefore, every change in the RPLR does not affect the interest rate on the Home Loan. On the reset date, the individual Home Loan rate increases if the RPLR increases and vice versa.
Generally, any change in the rate of interest should either vary the EMI or the loan repayment tenure. Aadhar Housing Finance prefers to maintain the EMI constant while modifying the loan tenure. However, Aadhar Housing Finance can opt to change the EMI, as well. Borrowers can prefer either of the options at the time of executing the Home Loan contract.
Usually, all housing finance companies calculate Home Loan interest on monthly reducing balance method. The banks have a better way of calculating interest. They use the daily reducing balance method. It is a better method because it gives the benefit of interest on the EMI paid during the month.
This example can explain things better.
Aadhar Housing Finance calculates Home Loan interest for September 2019 on balance outstanding on August 31, 2019. The instalment paid during the month does not get the benefit of interest for the month. It could be a small amount, but it cascades into a substantial amount over the entire tenure of the loan.
Salaried employees and self-employed individuals having documented records of income do not have any issues. However, Aadhar Housing Financecaters to the informal sector that does not have any documented source of income. This sector comprises daily labour, skilled artisans, and service providers like autorickshaw drivers. Aadhar Housing Finance conducts market surveys and discreet interviews to arrive at the income-generating capacity of such an informal sector.
Aadhar Housing Finance is a non-banking housing finance company that does not accept deposits from the public. It depends on its net worth and bank borrowings for financing the borrowers. Secondly, it caters to the informal sector where risk perception is considerably high. Therefore, the rates of interest on the Aadhar Housing Finance Home Loans are higher than what the banks offer.