Shriram Housing Finance Home Loan Interest Rates
Interest Rate

Starting @ %

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Loan Tenure

- years

Lowest EMI Per Lakh

₹  for years

Prepayment Charges

Nil charges for floating rates loans

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About Shriram Housing Finance

Shriram Housing Finance Limited, promoted by its parent company, Shriram City Union Ltd, is a prominent non-banking financial company (NBFC) registered with the National Housing Bank of India. This NBFC has a sizeable presence in the southern states of India, especially Tamil Nadu. It is one of the preferred NBFCs when it comes to providing Home Loans in the state. Apart from Home Loans, Shriram Housing Finance Limited offers mortgage loan against residential and commercial property. This Company takes great pride in its achievements and strives to provide the best possible service to its customers. 

Shriram Housing Finance Home Loan

Shriram Housing Finance has an array of Home Loan products in its kitty. The company caters to both salaried and self-employed individuals, especially in the smaller towns of India. The products on offer include Home Loans for purchase and construction of houses. There are home improvement and home extension loan products, as well. Besides, the company offers Balance Transfer facility from other banks. It also has Home Loan top-up products at attractive rates of interest. Shriram Housing Finance is an active lender in the Pradhan Mantri Awas Yojana, especially in the southern states of India. The features of Shriram Housing Finance Home Loans are its attractive rate of interest and transparent processing. The rates of interest are comparable with the best rates on offer by other NBFCs.

Shriram Housing Finance Home Loan Interest Rates

Shriram Housing Finance offers housing loans on a floating interest basis. The company links the Home Loan interest rates with its Prime Lending rate (SHPLR). The present SHPLR is 15%. The Home Loan interest rates start from 10.49%.

Housing Finance Product Rate of Interest

Home Loans

Starting from 10.49% per annum

Residential Plot Loans

Starting from 10.49% per annum

Affordable Housing (PMAY)

Starting from 10.49% per annum, Interest subsidy available as per Government guidelines

Home Improvement Loans

Starting from 10.49% per annum

Home Extension Loans

Starting from 10.49% per annum

Top Up Loans

Starting from 10.49% per annum

Balance Transfer

Starting from 10.49% per annum

Shriram Housing Finance Home Loan - Interest Rate Concept

  • Shriram Housing Finance charges Home Loan interest rate on a floating basis. The company does not have a fixed rate product.
  • The housing loan and the non-housing loan interest rates are linked to Shriram Housing Prime Lending Rate.
  • The Home Loan interest rate starts from 10.49%. It implies that every customer does not get the same rate of interest on the Home Loan and other loans.
  • The interest rate on the Home Loan for an individual customer depends on factors like loan amount, repayment tenure, and the credit rating of the individual. The better the credit rating, the lower is the interest rate.
  • Shriram Housing Finance Limited adopts the same method of charging interest on Pradhan Mantri Awas Yojana Home Loans, as well. However, these loans come with an upfront interest subsidy.

Shriram Housing Finance - Pradhan Mantri Awas Yojana

The method of calculation of interest and the rates of interest for PMAY is the same as that for other Home Loans. The only difference is in the treatment of upfront subsidy. These loans come with an interest subsidy portion. According to the PMAY guidelines, the subsidy is credited upfront. Therefore, the interest liability of the borrower decreases substantially.

PMAY-U Category Eligible income The maximum loan amount for calculation of subsidy Interest Subsidy

Economically Weaker Section - EWS

Up to 3 Lakhs

6 lakhs

6.5% with a maximum of 2.67 Lakhs

Lower Income Group - LIG

Higher than 3 Lakhs and up to 6 Lakhs

6 lakhs

6.5% with a maximum of 2.67 Lakhs

Middle Income Group - I MIG-I

More than 6 Lakhs and up to 12 Lakhs

9 lakhs

4% with a maximum of 2.35 Lakhs

Middle Income Group-II MIG-II

Greater than 12 Lakhs and up to 18 Lakhs

12 lakhs

3% with a maximum of 2.30 Lakhs

Shriram Housing Finance Home Loan - Method of Repayment

Shriram Housing Finance accepts the following different kinds of repayments:

The Flexible Loan Instalment Plan

The Flexible Loan Instalment Plan is a unique repayment facility where the instalments in the initial period are high. It decreases gradually as the years go by. It is beneficial when the borrower envisages retirement in service after a specific period. Thus, a reduced income after retirement would not suffice to pay the instalment. Therefore, the flexible loan instalment plan should be the ideal one.

Tranche-based EMI

The Tranche-based EMI is the perfect option when you avail a Home Loan for a house under construction. The regular EMI will commence after the moratorium period. In the meanwhile, you can start paying your EMIs in advance on the disbursed amount until the monthly EMI starts. It is an excellent way to reduce your interest liability.

Regular EMI

Shriram Housing Finance calculates the monthly EMI after considering the loan amount, rate of interest, repayment tenure, and the moratorium period. The borrowers can exercise their option to repay interest during the moratorium period if necessary.

Shriram Housing Finance - Home Loan Interest Calculation Method

Shriram Housing Finance calculates Home Loan interest on a daily reducing balance basis. This method of calculation is the most beneficial to the customer. Regular repayments of EMIs can help in reducing the interest burden considerably.

How to Calculate Shriram Housing Finance Home Loan EMI?

Shriram Housing Finance website has an EMI Calculator that can help borrowers to determine their loan liability quickly. Enter the loan amount, loan tenure, and the rate of interest to get your EMI amount instantly.

MyMoneyMantra also has a similar EMI Calculator on its website portal. Here's how to use it:

  • Access the MyMoneyMantra official webpage
  • Select Financial Tools
  • Choose EMI Calculator
  • Provide the necessary information such as loan amount, rate of interest, and loan tenure
  • Hit the 'Calculate' button
  • You get your EMI amount in no time

Shriram Housing Finance Home Loan - Factors That Affect the Interest Rate

Shriram Housing Finance Home Loan interest rates start from 10.49%. The factors that determine the individual rate of interest for a borrower depends on various factors, such as:

  • The loan amount
  • The loan repayment tenure
  • The value of the residential property offered as security
  • The credit rating of the borrower

Of the four factors, the credit rating is a crucial one. The better the credit score, the lower will be the rate of interest.

Shriram Housing Finance Home Loan - Income Tax Benefits

The Income Tax Act 1961 offers various concessions in income tax for the housing sector, such as:

  • Interest payment rebate: Sec 24 of the Act allows the borrower to claim a deduction in income tax up to an amount of 2 Lakhs per year on account of repayment of housing loan interest. If there is a joint account, both the account holders are eligible to claim up to 2 Lakhs each provided the property is in joint names.
  • Principal repayment concession: Sec 80C of the Act permits the borrower to claim up to 1.50 Lakhs as repayment towards the principal portion of the Home Loan. Joint borrowers can claim 1.50 Lakhs each if the loan is in joint names and both the borrowers are co-owners of the property.
  • Additional interest repayment deduction: Sec 80EEA of the Act allows a further deduction of a maximum of 1.50 Lakhs over and above the deduction allowed under Sec 24. However, the borrower must satisfy specific conditions.
  • The housing loan should have been taken from a bank or a housing finance company
  • The stamp duty value on the property should be less than or equal to 45 Lakhs
  • The taxpayer should not be eligible for deduction under Sec 80EE
  • This concession is available to first-time home buyers alone
  • The total area of the house should not exceed 645 sq ft in the metropolitan cities and 968 sq ft in other cities and towns.
  • It is available for only those real estate products approved after 01st September 2019

Shriram Housing Finance Home Loan Interest Rate - FAQs

What is the maximum loan tenure available with Shriram Housing Finance?

The maximum housing loan tenure at Shriram Housing Finance is 25 years. If you are a salaried person, your loan tenure cannot extend beyond your retirement date.

Does the EMI change with a change in the rate of interest on a floating-rate Home Loan?

Generally, the EMI should change with any alteration in the rate of interest. It implies that the loan repayment tenure remains constant. However, Shriram Housing Finance and other housing finance companies prefer to change the loan tenure by either extending or reducing it. Therefore, they tend to keep the EMI constant. However, if they are not able to extend their tenure, they have no other option but to change the EMI.

From a borrower's point of view, which is the better option?

It is better to change the EMI when there is a change in the interest rate. The borrower ends up paying less over the entire loan tenure.

How does Shriram Housing Finance calculate the Home Loan interest rate?

Shriram Housing Finance links the Home Loan interest rates to its PLR. As on date, the SHPLR is 15%. As Shriram Housing Finance is a non-banking company, it does not follow the MCLR or the RLLR mode of interest calculation. It sticks to the old method of linking the loan interest rates to its Prime Lending Rate.

Is the Home Loan rate for a salaried employee different to that of a self-employed person?

The Home Loan rate is different for each individual. It depends on various factors such as the occupation of the borrower, the credit rating, and so on.

Can I get subsidy on PMAY loan if I avail a Home Loan of 20 Lakhs?

If you are eligible for a PMAY loan, you will get interest subsidy.

The prime eligibility norms are as follows:

  1. You or any member of your family (immediate dependants) should not have a pucca house in your name anywhere in the country.
  2. You should satisfy the income eligibility criteria. Your subsidy depends on your income criteria and the category to which you belong.
  3. If you belong to MIG-II, the maximum amount of loan eligible for subsidy is 12 Lakhs. Therefore, if you avail 20 Lakhs, the loan amount for calculation of your subsidy will be restricted to 12 Lakhs. The maximum amount you can get as the upfront subsidy is 2.30 Lakhs. Any amount above 12 Lakhs is not eligible for a subsidy. However, there is no restriction on availing any amount if you are otherwise eligible.

How do you calculate the upfront interest subsidy on PMAY loan?

The method of calculating the upfront subsidy is a complicated one. It involves the discounted rate (Net Present Value) calculation. However, the PMAY - Urban official website has a readymade PMAY subsidy calculator that helps you to calculate the subsidy.

Which is the better of the two, fixed-rate or floating rate?

The floating rate is better in a decreasing interest rate scenario, whereas the fixed rate is a good option when the market rate rises. However, the fixed rate is usually higher than the floating rate at the time of executing the contract.

Does Shriram Housing Finance Limited offer a fixed rate of interest?

Shriram Housing Finance offers a floating rate of interest. Their official website does not have any mention of providing a fixed rate of interest. The housing loan interest starts from 10.49% per annum.

How can I reduce the Home Loan interest burden?

One way of reducing the Home Loan interest burden is by paying the EMIs on time. Any delay in the EMI results in levying of penal interest. Since Shriram Housing Finance calculates interest on a daily reducing balance basis, it is beneficial to pay your EMIs on time. You can also opt to make bulk prepayments if you have excess funds at your disposal. Shriram Housing Finance does not charge any penalty for part payments in bulk.

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