Khush Housing Finance Interest Rates

• Khush Housing Finance caters to the informal sector of society that does not have easy access to proper institutional home finance.
• Khush Housing Finance has able professionals in its ranks to deliver quick service at the customer's doorstep.
• Loans up to Rs 25 Lakhs are available with Khush Housing Finance
• The rates of interest are linked to market rates. Therefore, the customer benefits from any downward fluctuation of the benchmark rates.
• Loans are available to cater to all types of housing requirements
• Khush Housing Finance caters to beneficiaries under the Pradhan Mantri Awas Yojana, as well
• At Khush Housing Finance, borrowers get flexible repayment options ranging up to 20 years
• Facilities to add up to four co-applicants are available. It can increase your overall eligibility

Khush Housing Finance offers three types of Home Loans:

Purchase of New House

This loan product includes the procurement of a house from an individual seller or a builder. The loan amount depends on factors like income, repaying capacity, and the credit history of the borrower. The value of the property also plays a vital role in this process. Khush Housing Finance offers a maximum loan amount of 85% of the value of the property with a maximum of 25 Lakhs.

Renovation of Existing Home

Home renovations can cost you money. It might start with a small requirement but end up with a substantial budget. Khush Housing Finance realises this problem. Hence, they have a customer-friendly home renovation loan product. Customers can use this facility to carry out structural repairs like painting, waterproofing, electrical work, tiling, and so on. The loan amount depends on the requirement and the repaying capacity of the borrower. The maximum amount of loan for the home renovation is 10 Lakhs.

Loan for Constructing a House

People having a plot of land in their names can avail a Home Loan for construction from Khush Housing Finance. The maximum amount of loan available in this product is 25 Lakhs. However, the borrower must bring in a minimum of 15% as their contribution towards the project. Khush Housing Finance considers the value of the project, the estimated cost, and the repaying capacity of the borrower while dealing with such proposals.

Khush Housing Finance is a housing finance company. Hence, it does not adhere to the Base Rate or MCLR or RLLR as stipulated by the RBI. Khush Housing Finance links its interest rate to its PLR. The PLR of Khush Housing Finance connects with the market rates. Hence, this company relates to an external benchmark rate. Thus, it ensures that the benefits pass on to the ultimate customer.

Factors Affecting Home Loan Interest Rates

• External benchmark rates: The housing loan interest rates are linked to an external benchmark rate to bring in an element of transparency. The benefits accruing from the downward swings in the market rates reach the ultimate customer on time.
• The occupation of the borrower: Salaried person has a stable source of income, whereas self-employed individuals have a variable income. Therefore, salaried persons have lower risk perception. Hence, they get the benefits of a better interest rate pricing.
• Credit rating of the borrower: The CIBIL rating of the borrower affects the rate of interest. A good or excellent score can result in a lower spread. Therefore, such borrowers could enjoy a comparatively better rate of interest.

The present-day Khush Housing Finance Home Loan interest rate starts from 10.50% onwards. 

Khush Housing Finance is a member lending institution under PMAY. This housing finance company promotes this flagship programme of the Central Government. Khush Housing Finance has signed an agreement pact/MOU with National Housing Bank for facilitating the Credit Linked Subsidy Scheme (CLSS) under PMAY. This programme envisages providing housing loans to needy people so that every Indian has a permanent shelter by the year 2022.

The salient features of the CLSS under PMAY are as follows:

Category of the Borrower

The borrowers fall into four categories depending on their annual family income:

• Economically Weaker Section: Annual family income <= 3 Lakhs
• Low-Income Group: Annual family income > 3 Lakhs and <= 6 Lakhs
• Middle-Income Group-I: Annual family income > 6 Lakhs and <= 12 Lakhs
• Middle Income Group-II: Annual family income > 12 Lakhs and <= 18 Lakhs

The subsidy allotment for each of the four categories is as listed below:

Rate of Interest Applicable to PMAY Loans

The rate of interest relevant to PMAY loans is not different. The rates that apply to regular Home Loans are valid for PMAY loans, as well. However, the upfront subsidy factor reduces the EMI payable on a PMAY Home Loan substantially.

Treatment of Subsidy

As listed above, all PMAY Home Loan accounts are eligible for a subsidy from the Government. This subsidy is an upfront grant that is credited to the loan account. Therefore, the EMI of the borrower reduces considerably.

The official website of Khush Housing Finance offers an EMI Calculator to determine the EMI amount payable on the Home Loan. Using this facility requires the borrower to provide the following information:

• Approved loan amount
• Contracted rate of interest
• Loan repayment tenure

Similarly, MyMoneyMantra has a calculator on the Financial Tools page of its website. The customer should enter the loan amount, the rate of interest, and repayment tenure to get the EMI instantly. This calculator provides a complete breakup of the interest portion and the principal portion throughout the mandate of the loan.

The EMI Concept

EMI constitutes Equated Monthly Instalments. The name suggests that the monthly instalments are distributed equally throughout the loan tenure. Paying the EMIs on time can help you to repay the loan properly.

The EMI comprises of an interest component and a principal repayment constituent. Both these figures keep on varying every month. In the initial stages, the interest component is more than the principal part. Over a period, things even out and the principal repayment constituent becomes more than the interest component. As on date, the EMI concept is the ideal method of repayment of any loan.

The EMIs commence on the day the final disbursement is over. Until that time, the borrower must pay the pre-EMI interest every month.

Khush Housing Finance calculates Home Loan interest on the monthly reducing balance method. The method is a suitable repayment mode but has some inherent drawbacks. The customer does not get the benefit of interest on the EMI paid during the particular month. The advantage is available in the succeeding month. It is because Khush Housing Finance calculates the interest on the closing balance of the previous month.

Reserve Bank of India circular is very clear as it prohibits any HFC from charging foreclosure penalty on floating rate of interest Home Loans. Thus, Khush Housing Finance does not charge any penalty from its customers on foreclosure of the Home Loan.