Mahindra Finance Home Loan Interest Rates
Mahindra Finance offers home loans for the purchase, construction, renovation and improvement of houses at fixed as well as variable rates of interest. Mahindra Finance home loan interest rates vary between 8.50% to 26.00% per annum. Apart from the interest rate, you will be required to pay a processing fee of 1% of the sanctioned loan amount. If you meet the Mahindra Finance home loan eligibility criteria, you can get a Mahindra Finance home loan at an attractive interest rate and repay the loan in affordable EMIs starting from just Rs. 874 per lakh for a maximum tenure of 25 years.
Current Mahindra Finance Home Loan Interest Rates
Mahindra Finance offers the following two types of home loan interest rates
- Fixed for all customers other than salaried semi-urban class customers: These interest rates will be fixed during the tenure of the home loan and applicable as prevalent on the date of disbursement, subject to revision every 3 years, depending on the finance market conditions.
- Variable for salaried semi-urban and urban class customers: These interest rates will fluctuate as per the finance market conditions and will be notified to the customer from time to time.
Currently, Mahindra home loan interest rates vary between 9.5% to 22% p.a, depending on the borrower’s CIBIL score, loan amount requirement and other eligibility factors.
Compare Karnataka Bank Home Loan Interest Rate with Top Banks
Being a long-term loan, taking a home loan is a huge responsibility. It is crucial to compare interest rates offered by other top banks before applying for a Mahindra Finance home loan.
| Bank/NBFC | Interest Rate | Processing Fee |
| Mahindra Finance Home Loan | 8.50% to 26.00% | 1% |
| Karnataka Bank Home Loan | 8.19% | Up to 0.25%, maximum Rs. 25,000 |
| Bank of Maharashtra Home Loan | 7.35% - 10.40% | Nil |
| HDFC Bank Home Loan | 7.50% - 8.45% | Up to 0.50% or Rs. 3,000 whichever is higher + applicable taxes/ statutory levies |
| SBI Home Loan | 7.50% - 8.45% | 0.35% + GST; 50% waiver from 01.07.2023 to 31.08.2023 |
| ICICI Bank Home Loan | 8.75% | 0.50% - 2% + GST or Rs. 3,000 whichever is higher + applicable taxes & other statutory levies |
| Axis Bank Home Loan | 8.75% - 11.60% | Up to 1% +GST |
| Kotak Home Loan | 7.70% | 0.50% to 1% + GST |
Factors Affecting Mahindra Finance Home Loan Interest Rates
The interest rate applicable to Mahindra Finance home loan depends on the following factors:
- Type of the asset
- Borrower’s profile
- Borrower’s repayment capacity
- Other financial commitments of the borrower
- Credit history of the borrower
- Loan to Value ratio
- Mode of payment
- Loan repayment tenure
- The geographical location of the borrower
- The end use of the asset
Thus, each borrower will end up with a different rate of interest depending on the above parameters.
Mahindra Finance Home Loan Interest Structure
Mahindra Finance Home Loan has fixed and floating rates of interest for its customers. The mode of interest depends on the occupation and the nature of income of the prospective borrower.
- Salaried customers in urban and semi-urban areas: These customers get the benefit of a floating rate of interest that depends on market fluctuations. Hence, the final rate of interest is subject to change whenever there is a change in the Mahindra Finance PLR.
- Non-salaried customers in urban and semi-urban areas: This category of customers gets a fixed rate for the entire tenure of their loan. The fixed rate is the rate applicable on the date of the first disbursement of the loan. However, the fixed rate is subject to revision every three years, depending on the market conditions.
Mahindra Finance Home Loan Interest Rates FAQs
Yes, Mahindra Finance offers a fixed rate of interest home loans to non-salaried individuals in urban and semi-urban areas. These persons include self-employed professionals and individuals who do not have a regular monthly income in the form of a salary. This Home Loan attracts a fixed rate of interest for the entire tenure of the loan. The rate of interest is reset every three years, depending on the market rate conditions.
EMI stands for Equated Monthly Instalments. Similarly, EQI and EHI stand for Equated Quarterly Instalments and Equated Half-yearly instalments. The EMI is the ideal mode of repayment for people who get their monthly salary or income. However, farmers do not have any monthly income. Their income coincides with the harvesting season which is usually quarterly or half-yearly. Hence, such people benefit by opting for the EQI or the EHI modes of repayment.
Permanent independent houses and flats/apartments, having a valid title. The property needs to have building approvals from civic authorities and house properties which may be under construction or completed and ready to occupy.
Based on your repayment capacity, Mahindra Finance home loan can be repaid in monthly, quarterly or half-yearly equated instalments through EMI/EQI/EHI comprising of principal and interest. Repayment of the loan can be made via cash/cheque/demand draft at any of MRHFLs offices. You can also make repayment at collection centres approved by MRHFL.
Reshma Rawat is a passionate writer, with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra, and writes blogs & webpages on financial products (loans, credit cards, insurance, financial policies by government, mutual funds, etc.
Abhijeet Singh has comprehensive experience in business writing, content management, SEO, social media and user analytics. Key areas of expertise include stock markets and personal finance.