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Aditya Birla Housing Finance Home Loan Interest Rates
Apply for Aditya Birla home loan online and repay the borrowed amount in tenure up to 30 years. Get LTV up to 90% of the property’s cost. Aditya Birla home loan interest rates vary from 9% to 12.50% per annum and there are no prepayment charges for floating rate home loan given to individuals.
Aditya Birla Housing Finance Home Loan Features and Benefits
Following are the features of Aditya Birla Housing Finance Home Loan:
- Home Loans for purchase of a new house or flat
- Loans for buying a second-hand home or apartment
- Home Loans for construction of house/flat
- Home improvement and extension
- Repairs and renovations to existing homes
- Loans for purchase of plots and constructing houses thereon
- Flexible loan tenure extending up to 30 years
- Attractive interest rates
- Relaxed eligibility norms
- Speedy processing
- Transparent service charges
- Balance transfer facilities available
- Doorstep services on offer
- LTV in the range of 75% to 90%
- Available at select locations across India.
Table of Contents: Aditya Birla Housing Finance Home Loan Interest Rates [Hide]
- Aditya Birla Housing Finance Home Loan Interest Rates
- Aditya Birla Housing Finance Home Loan Charges
- Aditya Birla Housing Finance Home Loan - EMI Calculation
- Aditya Birla Housing Finance Home Loan Application Procedure
- Aditya Birla Housing Finance Home Loan Interest Rate - Calculation of Interest
- Aditya Birla Housing Finance Home Loans - PMAY Subsidy Concept
Aditya Birla Housing Finance Home Loan Interest Rates
Aditya Birla Housing Finance has a specific reference rate known as ABHFL Reference Rate (ARR) for pricing its Home Loans. This rate is a floating rate linked to market-related reference rates. As the market rates fluctuate, the ARR goes up and down. Thus, the housing rate for the individual increases or decreases accordingly.
The ARR with effect from October 15, 2018, is 16.25%.
The individual Home Loan interest rate structure is as follows:
- Salaried Borrowers - 9% to 9.75%
- Self-employed borrowers - 9% to 12.50%
Aditya Birla Housing Finance Home Loan Interest Rates - Points to Note
- Aditya Birla Housing Finance offers three different types of interest rates, fixed, floating, and variable.
- The rates of interest can vary from one borrower to the other depending on various factors.
- The credit rating of the borrower
- Repayment capacity
- Nature and value of security offered
- Repayment track record
- Industry trends
- The ARR is subject to review at periodical intervals
- A variation in the ARR can bring about a change in the individual Home Loan rate. However, existing borrowers who have opted for the fixed loan rates will not be affected in any way.
- The company may levy a penalty for delayed payments and defaults if any
- The rates of interest for the Affordable Housing Scheme and PMAY loans are the same as that of the conventional Home Loans.
Aditya Birla Housing Finance Home Loan Charges
| Type of charge | Amount |
| Processing fees |
|
| Prepayment or foreclosure charges |
|
| Penalty for delayed payment | 2% per month for the default amount and delayed period |
| Cheque bounce or ECS failure | 750 per instance |
| CERSAI charges |
|
| Pre-closure charges | 1,000 per instance |
| Copies of documents | 750 per occasion |
| Duplicate statement/ Repayment schedule | 200 per instance |
| CIBIL report retrieval |
|
| Loan re-scheduling fee | 0.50% |
| Issuance of NOC | 500 |
| Loan cancellation charges | 4% of the loan amount disbursed |
| Swap charges from fixed to floating rates and vice versa | 2% of the loan outstanding |
| Stamp duty | Depending on State Laws |
Aditya Birla Housing Finance Home Loan - EMI Calculation
Aditya Birla Housing Finance has facilities to calculate your Home Loan eligibility and loan EMI on its website. These calculators help customers plan their Home Loans and other liabilities accordingly.
Home Loan Eligibility Calculator
The Home Loan eligibility calculator enables customers to calculate their eligibility and apply for the Home Loan, as well.
- Access the website of Aditya Birla Housing Finance
- Indicate your choices as they appear on the screen
- Provide details of your income, turnover, profit, and other loan liabilities
- Indicate the loan tenure you expect
- You get an in-principle approval
- You can apply for the Home Loan from the same page by furnishing your contact details
- Aditya Birla Housing Finance Home Loan officials will call to complete the formalities
Home Loan EMI Calculator
This calculator helps customers to determine the EMI amount for their Home Loan.
- Select the EMI Calculator on the webpage
- Enter the loan amount, the repayment tenure, and rate of interest
- You get your EMI instantly
MyMoneyMantra has a similar EMI Calculator on the Financial Tools section of its home page. This calculator gives you the breakup of principal and interest repayment over the entire Home Loan tenure.
Aditya Birla Housing Finance Home Loan Application Procedure
Applying for your Aditya Birla Home Loan online is a convenient process. Click on the 'Apply Online' on the official webpage of Aditya Birla Housing Finance. Customers have to submit their details following which Aditya Birla Housing Finance officials call back to complete the formalities.
MyMoneyMantra enables applicants to apply for their Aditya Birla Home Loan from their website. The advantages of using our website are as follows:
- The information submitted by the customers is confidential
- Get the advantage of comparing similar Home Loan products of more than 90 competitors
- MyMoneyMantra Home Loan customer service executives help you with their guidance
Aditya Birla Housing Finance Home Loan Interest Rate - Calculation of Interest
Aditya Birla Housing Finance calculates interest on the monthly reducing balance method. Almost all the housing finance companies calculate Home Loan interest in this fashion. Commercial banks adopt the daily reducing balance method. This method is comparatively more beneficial to the customers, as it allows the customers to get the benefit of interest on the EMIs paid during the month.
Modes of Repayment
The following modes of repayment are acceptable in Aditya Birla Housing Finance Home Loan:
- Submit post-dated cheques for the EMI amount in advance. However, the borrower has to ensure to replenish the cheques on exhaustion.
- Register for an ECS mandate. This mode of repayment is the best one available because it provides the Company with options to increase the EMI at any time.
Aditya Birla Housing Finance Home Loans - PMAY Subsidy Concept
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.
- Economically weaker section (EWS) - Income up to 3 Lakhs
- Low-Income Group (LIG) - Income higher than 3 Lakhs <= 6 Lakhs
- Middle-Income Group-I (MIG-I) - Income > 6 Lakhs and <= 12 Lakhs
- Middle-Income Group-II (MIG-II) - Income > 12 Lakhs and <= 18 Lakhs
Subsidy Qualification
- Borrowers belonging to EWS and LIG are eligible for a maximum subsidy of 2.67 Lakhs. The loan amount eligible for calculation of the subsidy is equal to 6 Lakhs.
- MIG-I and MIG-II receive a maximum subsidy of 2.35 Lakhs and 2.30 Lakhs respectively. The corresponding loan amounts are 9 Lakhs and 12 Lakhs.
Subsidy Treatment
- The subsidy is an upfront interest subsidy. Hence, it is credited to the loan account immediately.
- This credit reduces the loan liability of the borrower. Thus, the EMI reduces considerably, as well.
Lowest Interest Rate
Home loan interest rates are the lowest ever in the past 15 years. With raining festival offers on home loan, currently you can avail of the best interest rate on Kotak home loan @6.40% p.a for all loan amounts.
Affordable EMI plans
You can avail the lowest Home Loan EMI at Rs.626 per lakh with maximum repayment flexibility. Some options are Step-Up EMIs, Step Down EMIs, Moratorium, OD facility, balance transfer, top up and more.
No Foreclosure Charge
Home Loans at floating interest rate (linked to repo rate) offer you ultimate prepayment flexibility. There is no part or full prepayment charge. You can prepay early & reduce interest cost as per your cash flows.
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Aditya Birla Housing Finance Home Loan Interest Rates FAQs
What are the different types of rates of interest offered by Aditya Birla Housing Finance on its Home Loans?
Aditya Birla Housing Finance offers the following three types of interest rates to its Home Loan customers.
- Floating rates of interest - These rates link to the ARR, a market-related reference rate. Any change in the ARR affects the Home Loan interest rate accordingly.
- Fixed rates of interest - As the name suggests, the interest rates are fixed for the entire loan tenure. The variations in the ARR do not affect this interest rate.
- Variable rates of interest - This interest rate is fixed for a pre-determined period. Subsequently, it switches over to a floating rate.
Which of these rates is the most beneficial to the customers?
It depends on the situation. The floating rates can go up and down along with the ARR. In the case of extreme fluctuations, the floating rate can be a disadvantage. Otherwise, this rate is the best for Home Loans. The fixed rate of interest is beneficial if the market rates move up continuously. Generally, the rates do not move in the same direction for long. The variable rates of interest are best for customers who are unable to decide at the moment.
What factors determine the rate of interest applicable to the individual Home Loans?
The factors that affect the rates of interest on individual Home Loans are:
- Occupation of the borrower - Self-employed borrowers are at a disadvantage when compared to salaried borrowers.
- Repayment capacity - The existing liabilities of a borrower affect the rate of interest. A higher disposable income can fetch you a better interest rate.
- The credit rating of the borrower - The repayment record of the borrower plays a critical role in deciding the interest rates.
- Value of security - The LTV ratio is another vital factor.
Why are rates on the non-Home Loans higher than the Home Loan interest rates?
Housing is a priority sector finance in India. It is a basic need for humans. Loans against property are generally availed for personal and business purposes. There is no specific asset generation in such loans. Hence, risk perception is higher when compared to asset-based finance, such as Home Loans. Therefore, the rates are higher in comparison.
Can a borrower switch over from a fixed rate of interest structure to a floating rate structure?
Yes, switching over from one rate of interest structure to the other is permissible on the payment of a conversion fee.
What is the maximum Home Loan repayment tenure at Aditya Birla Housing Finance?
Aditya Birla Housing Finance offers loan repayment tenures extending up to 30 years. However, it depends on the age of the borrower, as well. Generally, housing finance companies do not extend Home Loan tenures beyond the age of 70 years.
What is the margin requirement for Home Loan available at Aditya Birla Housing Finance?
It depends on the loan eligibility of the applicant and the value of the property.
Aditya Birla Housing Finance has the following margin requirements for different loan amounts:
- Loans up to 30 Lakhs - 10%
- Loans > 30 Lakhs and <= 75 Lakhs - 20%
- Loans > 75 Lakhs - 25%
Does Aditya Birla Housing Finance provide Home Loans all over India?
As on date, Aditya Birla Housing Finance provides Home Loans in 37 cities and towns in India. The list of such towns is available on the website of Aditya Birla Housing Finance.
Are IT benefits available on Home Loan repayments on Aditya Birla Home Loans?
Yes, IT concessions are available as per the IT Act on interest and principal loan repayment of Home Loans.
Why is the Home Loan rate of Aditya Birla Housing Finance higher than that of commercial banks?
Aditya Birla Housing Finance is a housing finance company that cannot accept deposits from the public for lending purposes as banks do. The Company has to invest or borrow from the market to provide Home Loans to the public. Hence, the rates are comparatively higher but are competitive when compared to its peers.
