Edelweiss Home Loans Interest Rates

Edelweiss offers a range of Home Loans to cater to the housing requirements of all sections of society. Salaried persons, self-employed individuals, and people belonging to the informal sector are eligible for Edelweiss Home Loans.

The salient features of Edelweiss Home Loans are as follows:

Purpose of the loan

• Purchase or construction of a house - Regular Home Loan
• Repairs, renovations, and improvements to existing dwellings - Home Loan Improvement
• Purchase of plot and construct house thereon
• Balance Transfer from other banks and financial institutions

Quantum of Home Loan

The Loan to Value ratio ranges between 50% to 90%, depending on the product category. However, the maximum quantum of loan is 35 Lakhs.

Loan repayment tenure

Edelweiss offers flexible repayment tenure ranging between 10 and 20 years, depending on the loan product and other factors.

Edelweiss is a housing finance company that does not come under the direct control of the Reserve Bank of India. The National Housing Bank is the controlling agency for Edelweiss. Hence, Edelweiss is not bound by RBI regulations like having interest rate structures like MCLR and RLLR. Edelweiss subscribes to its Home Loan Reference Rate that varies along with market-rate fluctuations.

All individual Home Loan interest rates are linked to this reference rate. Commercial banks follow the MCLR and RLLR interest rate structures, where the banks loan a premium on to the base rates. The Home Loan Reference Structure is such that Edelweiss prescribes a discount over the rate when offering it to borrowers.

The Edelweiss Housing Finance Limited Home Loan Reference rate is 16.95% with effect from October 01, 2018.

Edelweiss Home Loans Interest Rates - Points to Note

• Edelweiss Home Loan interest rates are floating or variable. They vary according to the Home Loan Reference Rates announced by Edelweiss from time to time.
• Edelweiss also offers loans on fixed rates of interest, depending on the borrower's request. The fixed rates of interest are considerably higher than the floating rates of interest.
• The discount offered on the Home Loan interest rates depends on various factors mentioned below:
  • The loan product and the purpose of the loan is a vital factor. Loans for purchase or construction of house have a higher discount when compared to Home Loans for repairs and renovations.
  • The Loan to Value ratio decides the discount rates, as well. The higher the value of the property, the better is the discount.
  • The marketability of security is a critical aspect of any Home Loan proposal
  • The occupation of the borrower and the income generation capacity plays a crucial role in deciding the interest rates on individual loans.
  • Salaried employees with a regular source of income get a higher discount when compared to self-employed individuals.
  • The credit rating of the borrower is another deciding factor. Edelweiss does an internal credit assessment of the borrower to determine the repayment capacity. The discount depends a lot on this credit assessment.
  • The Home Loan rates for PMAY borrowers are the same as that of regular Home Loan products
  • Edelweiss offers opportunities to borrowers to switch over from the fixed rate of interest structure to the floating rates and vice versa. Such switchovers are subject to the payment of a conversion fee.

Edelweiss Home Loans Charges - Points to Note

• Edelweiss Housing Finance does not charge any foreclosure on Home Loans of individuals with floating rates of interest.
• Non-individuals comprise sole proprietorship concerns, partnership firms, companies, HUF, and other non-individual entities.
• Private sources of funds constitute any source other than borrowing from banks and financial institutions.

• Edelweiss Housing Finance calculates interest on Home Loans on the monthly reducing balance method.
• The preferred mode of payment is EMI
• Agriculturists can request for alternative payment modes such as quarterly or half-yearly instalments depending on the harvest season.
• The EMI starts from the month following the date of final disbursement in cases that do not stipulate moratorium.
• In the case of partial disbursements, the borrower should pay pre-EMI interest every month until the start of the regular EMI.
• Late payments attract a penal interest of 24% per annum for the amount of default and default tenure.
• Any repayment made by the borrower goes towards satisfaction of interest. The balance, if any, goes towards the liquidation of the principal amount.
• PMAY borrowers get the benefit of upfront interest subsidy. This grant is credited to the Home Loan of the PMAY borrower immediately.

Edelweiss Housing Finance has various calculators on its website for the convenience of its customers.

EMI Calculator and Loan Schedule

Enter the loan repayment tenure, rate of interest, and loan amount to get your EMI. This calculator provides the loan amortisation schedule, as well. It can prove handy for calculation of PMAY subsidy amount.

Home Loan Affordability Calculator

• This calculator provides the Home Loan eligibility of any borrower on the submission of the following information:
  • Own contribution or margin
  • Gross monthly income
  • Expected loan repayment tenure
  • Total of other EMIs
  • Anticipated rate of interest

Tax Saving Calculator

• Provide the following information to get the tax savings you make on your Home Loan repayment.
  • Interest paid amount
  • Principal amount repaid
  • Annual taxable income
  • Type of property - self-occupied or rental

Stamp Duty Calculator

The stamp duty depends on the State Government Stamp Act Rules. Enter the property value and the state where the property is situated. You get the stamp duty payable for the registration of the property.

Edelweiss is a prime lending institution under PMAY. The National Housing Bank is the Central Nodal Agency for Edelweiss for claiming and disbursing subsidy. The subsidy depends on the following factors:

• Category to which the borrower belongs - depending on the annual family income
• Amount of loan eligible for the subsidy - depending on the borrower category
• The maximum amount of grant - depending on the borrower category and rate of subsidy