Mahindra Finance Home Loan Interest Rates

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.

Mahindra Finance follows the monthly reducing balance mode of interest calculation on Home Loans. This method does not consider the EMI paid during the month for calculating interest. It calculates the interest on the outstanding balance on the last day of the previous month. Therefore, the customer loses out on the interest benefit on the EMIs paid for a minimum of one month every time. Commercial banks follow the daily reducing balance method for calculating the Home Loan interest. The customers get the interest benefit on the EMI they pay.

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.

• Floating interest rates for salaried customers in urban & 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.
• Fixed interest rates for non-salaried customers in urban & 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.

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.