Fullerton India Home Loan Interest Rates
Interest Rate

Starting @ 10.25%

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Processing Fee

Upto 0.25%

Loan Tenure

3-20 years

Lowest EMI Per Lakh

₹ 982 for 20 years

Prepayment Charges

Nil charges for floating rates loans

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About Fullerton India

Fullerton India Credit Company Limited was launched in India in January 2007 as a subsidiary of Fullerton Holdings Pte Ltd. This company was, in turn, a wholly-owned subsidiary of Temasek Holdings Pte Ltd Singapore. Fullerton India caters to different types of credit requirements of all sections of people, including those living in rural areas. Fullerton India offers an array of loans in both the business and retail sectors. The company has more than 13,000 employees working in around 626 branches covering more than 600 towns and 58,000 villages in India.

Some of the path-breaking loan products include working capital loans for the self-employed urban youth and loans for promoting rural livelihood. This company finances numerous rural micro-enterprises and emphasises a lot on rural housing.

About Fullerton India Home Loans

Fullerton India has established a new subsidiary named Grihashakti, Fullerton India Home Finance Co Ltd to cater exclusively to the Home Loan requirements of its customers. This subsidiary was launched in December 2015 with its headquarters in Mumbai. Grihashakti has 82 branches situated all over India to finance the housing needs of its customers across the country.

Fullerton India Home Loans - Salient Features and Benefits

Grihashakti offers housing loans as well as loans for acquiring a commercial property.

Grihashakti Home Loans

Purpose

  • Purchase new house or resale home
  • Loans for home improvement
  • Loans for extension, repairs and renovations
  • Purchase a plot and construct a home thereon
  • Purchase house allotted by Housing Development Authorities

Target

  • Salaried employees and self-employed individuals or professionals
  • Non-individuals like partnership firms and private limited companies are also eligible for Home Loans.

Features

  • Convenient documentation process
  • Flexible interest rates
  • Comfortable repayment schedules
  • No hidden charges
  • Tax benefits on the Home Loan
  • Grihashakti offers unique Home Loan products for women under the product name Grihalakshmi. This product is ideal for a working woman. The women borrowers can avail the benefit of a concessional rate of interest.
  • Grihashakti Balance Transfer product enables borrowers to transfer their Home Loan balances from other financial institutions.
  • Grihashakti is also an active lender in PMAY, the flagship housing scheme of the Central Government. The company finances Home Loans under the Credit Linked Subsidy Scheme of PMAY (Urban) launched by the Central Government.

The features of PMAY (Urban) Home Loan are as follows:

Eligibility

  • The beneficiary should not have a pucca residential home in their or name of any family member anywhere in the country.
  • Married couples are considered as a single entity for subsidy purposes
  • The beneficiary should not have availed any Government assistance under any housing-related scheme in the past.
  • Women beneficiaries get preference in PMAY (U)
  • The family comprises of husband, wife, and unmarried children

Geographical location

Statutory towns as per Census 2011

Annual family income criteria

  • Economically weaker section EWS: Up to 3 Lakhs
  • Low-Income Group LIG: Above 3 Lakhs < = 6 Lakhs
  • Middle-Income Group-I MIG-I: More than 6 Lakhs <= 12 Lakhs
  • Middle-Income Group-II MIGII: Above 12 Lakhs <= 18 Lakhs

 

EWS and LIG

MIG-I

MIG-II

Area restriction

  • EWS - 30 sqm
  • LIG - 60 sqm

120 sqm

150 sqm

Eligible amount for subsidy calculation

6 Lakhs

9 Lakhs

12 Lakhs

Interest subsidy %

6.50%

4%

3%

Maximum subsidy

2.67 Lakhs

2.35 Lakhs

2.30 Lakhs

Woman ownership

Compulsory

Not mandatory

Not mandatory

Other Important Points to Note:

  • The subsidy will be calculated at the notional rate of 9% on the NPV
  • The grant is available for a maximum of 20 years or loan repayment tenure whichever is less
  • The upfront interest subsidy reduces the EMI liability of the Home Loan borrower
  • There is no upper limit on the property cost or loan amount
  • Loan amounts above the specific restrictions for subsidy calculation are unsubsidised loans

Fullerton India Home Loan Interest Rate

Fullerton India is a non-banking finance company. Hence, it is not bound to adapt to the MCLR structure. Fullerton India bases its Home Loan and other interest on its Retail Prime Lending Rate (RPLR). The effective RPLR of Fullerton India is 18.75% from December 01, 2018.

Difference between MCLR and RPLR Structure

In the MCLR structure, the banks load a premium on the MCLR depending on various factors.

 In the RPLR formula, the finance company loads a discount on the RPLR. Thus, you have effective Home Loan rates starting from RPLR - Spread instead of MCLR + Spread.

Individual Housing Loan rate structure of Grihashakti is as follows:

  • Minimum rate: 9.99%
  • Maximum rate: 21%

Individual non-housing rate structure of Grihashakti:

  • Minimum rate: 9.99%
  • Maximum rate: 24%

Fullerton India Home Loan Interest Rate - Points to Note

  • Fullerton India offers three types of Home Loan interest - floating, fixed, and semi-fixed
  • All these rates link to the RPLR of Fullerton India
  • The RPLR is a market-related interest rate structure
  • Usually, Fullerton loads a discount on the RPLR for conventional Home Loans
  • In case of defaults, the company loads a premium on the RPLR. Hence, the effective rate of interest becomes RPLR + Spread.
  • The rates of interest for PMAY Home Loans are the same as that of regular Home Loans

Fullerton India Home Loan - Method of Calculating Interest

Fullerton India calculates Home Loan interest on monthly reducing balances. The mode of repayment is EMI.

The borrower can choose any of the following modes of repayment:

  • Submit post-dated cheques from their bank account. It entails that the borrower should replenish the cheques after they get exhausted.
  • Register for an ECS mandate with the bank whereby Fullerton will recover the EMI directly from the bank through NACH.
  • Grihashakti offers the possibility of paying your loan EMI online using net banking, debit cards, payment wallets, or even UPI.

The ECS method is the better of the two, as it takes care of the repayment for the entire tenure. Secondly, it allows the leeway to increase your EMI at any point in time. In the case of PDC, it is not possible. The customer has to substitute the cheque for another one. 

Fullerton India Home Loan - How Do You Calculate the EMI?

Grihashakti offers the facility of an EMI Calculator using which you can determine your Home Loan EMI. MyMoneyMantra has a similar EMI Calculator on its website.

The customer has to submit the following information:

  • Loan amount
  • Rate of interest
  • Repayment tenure

In the case of PMAY loan, the loan amount will be the sanctioned amount less subsidy available under PMAY.

The EMI Calculator gives you the entire breakup of interest and principal repayment over the tenure of the loan.

Fullerton India Home Loan - Service Charges

Particulars of fees Charges

Processing fees

Up to 3% of the loan amount

Application fees

Loans less than 10 Lakhs: 2,500

Loan amount > 10 Lakhs and <= 25 Lakhs: 3,500

Loan amount > 25 Lakhs and <= 50 Lakhs: 4,500

Loan amount > 50 Lakhs: 6,000

Documentation charges

Loans <= 25 Lakhs: 1,500

Loans > 25 Lakhs: 3,000

Stamp fees

Depending on State Stamp Laws

Conversion fee (from one rate to another)

Up to 0.5% of the outstanding principal amount

Cheque bouncing charges

500 per case

Swap charges (mode of repayment)

600 per instance

CERSAI charges

Loans up to 5 Lakhs: 110

Loans above 5 Lakhs: 210

Prepayment (part or full) charges

Individual borrowers with a floating rate of interest Home Loans: No prepayment or foreclosure charges.

Non-individual borrowers with a floating rate of interest Home Loans: 5% of the prepaid amount.

Individual borrowers - a semi-fixed rate of interest:

  • Own sources: NIL
  • Balance takeover: 7% of the prepaid amount till the loan is in the fixed-rate tenure.

Non-individual borrowers - A Semi-fixed rate of interest:

  • Fixed-rate tenure: 7% of the prepaid amount
  • Floating-rate tenure: 5% of the prepaid amount

Fixed-rate of interest borrowers:

  • Within 60 months: 7% of the prepaid loan amount
  • After 60 months: 5% of the prepaid loan amount

Penal interest

Up to 2% per month on the overdue amount until repayment.

Partial disbursal fee

600

Duplicate loan account statement/ NOC/ loan agreement

300

Photocopy of original title deeds

500

How to Apply for Fullerton India Home Loan?

  • Fullerton India has facilities where customers can apply for Home Loans online. Submit your details online and authorise Fullerton loan executives to contact you and complete the loan formalities.
  • Alternatively, apply for your Fullerton India Home Loan through MyMoneyMantra. The procedure is straightforward. Besides, MyMoneyMantra loan executives help you with the application process at every stage.

Fullerton India Home Loan - Frequently Asked Questions

What are the different types of Home Loan interest rates available in Fullerton Home Loan?

Fullerton Home Loans come with three types of interest:

  • Fixed-rate of interest: The rate remains fixed for the entire tenure of the Home Loan
  • Floating rate of interest: The rate of interest is linked to the RPLR of Fullerton. It varies along with the fluctuations in the RPLR.
  • Semi-fixed rate of interest: This structure is a fixed cum floating rate of interest. The rate remains fixed for a specific pre-decided period after which it links to the RPLR.

What are the advantages/disadvantages of a fixed rate of interest on Home Loans?

The advantages are as follows:

  • The rate of interest remains fixed, and hence, the EMI and the repayment tenure do not change throughout.
  • It becomes easy for the borrower to manage their budget, as the liability is fixed

The disadvantages are as follows:

  • The fixed rate of interest is higher than the corresponding floating rate at the time of its fixation. Hence, you end up with a higher EMI or lower loan eligibility, as well.
  • Borrowers have to pay penal charges on prepayment or foreclosure of the loan in the case of adapting to the fixed rate of interest.

What are the merits and demerits of the floating rate of interest on Home Loans?

The merits:

  • The floating rate is less than the fixed-rate at the time of executing the contract
  • The floating rates ensure that the effective rate of interest on the Home Loan can reduce whenever the market rates go down. Hence, you end up with a reduced EMI or a lower tenure.
  • There are no foreclosure or prepayment charges for borrowers adapting to the floating rate of interest.

The demerits:

  • Any increase in the market rates can make your EMIs dearer
  • It is a challenge to stick to a long-term budget when you opt for floating rates. Your EMIs can increase, or your repayment tenures can extend.

What are the Pros and Cons of a semi-fixed rate of interest on a Home Loan?

Pros:

The semi-fixed rate is useful when there are extreme fluctuations in the market at the time of executing the loan agreement. The situation can improve later on when you switch over to a floating rate.

Cons:

Foreclosing a Home Loan during the fixed tenor of the semi-fixed rate of interest structure entails payment of penalty.

Is it possible to switch over from a fixed rate of interest to a floating rate scenario?

Yes, it is possible to switch over from one mode to the other by paying conversion fees.

Can you foreclose your Fullerton India Home Loan?

Yes, foreclosure of Fullerton Home Loan is permissible after a lock-in period of 12 months.

Can I foreclose a PMAY Home Loan?

Yes, you can foreclose your PMAY Home Loan. However, it can affect the upfront interest subsidy that you have received. It could entail refunding some portion of the grant depending on when you close the loan.

Why is the monthly reducing balance method of calculating Home Loan interest not beneficial to the borrower?

Fullerton follows the monthly reducing balance method for calculating the Home Loan interest. The monthly interest is calculated on the closing balance of the previous month. Thus, borrowers do not get the benefit of interest on the EMI they pay during the month.

How does Fullerton treat the EMI in the case of a revision in the Home Loan interest rate?

Fullerton keeps the EMI constant while varying the loan tenure. In the event of a rate increment, the mandate can extend and vice versa.

Is maintaining the EMI constant beneficial to the borrower?

It is better when the rates reduce. However, it is not advisable to maintain the EMI constant whenever the rates increase. Increasing the EMI should be beneficial under such circumstances.

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