Reliance Home Finance

Home Loan Interest Rates

Reliance Home Finance home loan interest rate starts from 9.75% p.a. and can go up to 11% p.a. RHFL offers loan amount of minimum Rs. 35 Lakhs for repayment tenure of up to 20 years. The loan can be availed by salaried as well as self-employed individuals. A processing fee of 0.5% to 1.5% is charged on the loan amount.


Reliance Home Finance Home Loans

Reliance Home Finance has three different loan products to cater to an extensive clientele.

  • Home Loan to purchase property already identified by the applicant
  • In-principle sanction to help the applicant identify the property and buy the same
  • Loan against residential and commercial property

Additional Info: Also check Sukanya Samriddhi Yojana

Reliance Home Finance Home Loans - Features and Benefits

  • Purchase new/second-hand house or flat/apartment
  • Construct home on a plot owned by the applicant
  • Purchase plot and construct house thereon
  • Home Extension
  • Home Improvement
  • Balance Transfer from other banks and housing finance companies
  • Top-Up loans available for a variety of purposes
Target group
  • Salaried Employees of Government/PSUs/reputed companies
  • Self-employed individuals carrying out business or profession
  • Informal sector who do not have documentary evidence to prove income generation capacity.
  • Non-resident Indians and Persons of Indian Origin
Quantum of loan
  • Regular Home Loan: Minimum of 35 Lakhs
  • Affordable housing: Maximum of 35 Lakhs
  • Home construction/purchase of plot: Minimum of 7.50 Lakhs
  • Home improvement/extensions: Minimum of 7.50 Lakhs
  • Balance transfer: Minimum of 7.50 Lakhs
  • Top-Up Home Loans: Minimum of 5 Lakhs
  • NRIs and PIOs: Minimum of 7.50 Lakhs
  • PMAY: As per the scheme
Rates of interest9.75% to 13.00%
Processing feesTransparent pricing
Features and benefits
  • Simplified documentation procedure
  • Maximum LTV Ratio of 80%
  • Doorstep Services

Additional Info: Also check Rs. 1 Crore Home Loan EMI

Reliance Home Finance Home Loan Interest Rates - Points to Note

  • Reliance Home Finance extends floating rates of interest on Home Loans
  • The Home Loan interest rate connects to the Reliance Prime Lending Rate
  • The Reliance PLR connects with the market-related rates
  • Any fluctuation in the market rates affects Reliance Home Loan interest rates to customers
  • Reliance Home Finance Interest rates for individual Home Loans depend on various factors:
    • Occupation of the borrower
    • Income generation capacity
    • Repayment capacity
    • The credit rating of the borrower
    • Purpose of the loan
    • Quantum of loan
  • PMAY loans have the same criteria for deciding the interest range for individual borrowers

Reliance Home Finance Home Loan - Factors That Affect the Eligibility of Borrowers

  • Monthly income: The higher the income, the better is the eligibility
  • Age of the borrower: Lower the age, the better it is for the borrower to get a longer tenure
  • Value of property: Loans are available up to 80% of the property value depending on other eligibility factors.
  • The credit rating of the borrower: A high CIBIL score enhances the eligibility factor because of the reduced interest rate.
  • Employment status: Salaried employees have higher eligibility because of the regularity of income.
  • Professional status: Professionals like CAs and doctors have better entitlement
  • Relationship with the lender: A sustained relationship with your lender improves your eligibility factor.
  • Your employer reputation: Applicants working with Government departments or MNCs enjoy better home loan eligibility because of the status of their employer.

Reliance Home Finance Home Loan - Factors Affecting PMAY Borrowers

Reliance Home Loan is a reputed Home Loan financer under PMAY. The rules governing PMAY loans are the same for all the banks financing under this scheme. Reliance Home Finance Home Loan works under the control of the National Housing Bank. It forwards the subsidy claims to NHB for sanction.

Every PMAY borrower is eligible for an upfront interest subsidy. The Government grant depends on various factors.

  • Category of the borrower: Depends on the annual family income
  • Loan Amount eligible for subsidy: Depending on the category of the borrower
  • The maximum amount of grant: Ceilings prescribed for each category of borrower

The classification of borrowers is as follows:

  • Applicants having annual family income up to 3 Lakhs qualify under Economically Weaker Section (EWS).
  • The Low-Income Group (LIG) comprises of applicants having annual family income more than 3 Lakhs but up to 6 Lakhs.
  • The Middle-Income group is divided into two sub-categories, MIG-I and MIG-II
  • MIG-I constitutes applicant families having annual family income between 6 Lakhs and 12 Lakhs.
  • MIG-II is the creamy layer of society having annual family income more than 12 Lakhs and up to 18 Lakhs.
  • The definition of 'Family' under PMAY includes husband, wife, and unmarried children
  • The annual family income comprises of income from all sources

The Treatment of PMAY Subsidy

Category of BorrowerLoan amount eligible for PMAY grantMaximum amount of PMAY subsidy
EWS/LIG 6 Lakhs 2.67 Lakhs
MIG-I 9 Lakhs 2.35 Lakhs
MIG-II 12 Lakhs 2.30 Lakhs
  • Pradhan Mantri Awas Yojana is an upfront interest subsidy
  • It is to be credited to the loan account of the borrower immediately on receiving the same from NHB.
  • As a result, the loan liability of the borrower reduces considerably
  • The EMI decreases drastically

Reliance Home Finance Home Loan - EMI Calculation

Reliance Home Finance website offers the facility of various calculators such as Loan eligibility calculator, loan affordability calculator, and EMI calculator. The EMI calculator helps to calculate the EMI payable on the Home Loan. Customers should submit the following information to determine the Home Loan EMI.

  • Loan amount
  • Rate of interest
  • Repayment tenure

MyMoneyMantra offers a similar facility on its website.

Reliance Home Finance Home Loan - Ways to Apply

Customers can register requests for Home Loans online:

  • Click on the Apply Now option
  • Complete the preliminary application form
  • Submit the completed form to get a call back from Reliance Home Finance

MyMoneyMantra offers facilities to apply for Reliance Home Finance Home Loan from its official website.

  • Access MyMoneyMantra.com
  • Go to Home Loans
  • Submit the information asked for
  • Get guidance from MyMoneyMantra Home Loan officials
  • Compare products of different loan providers
  • Select your preferred service provider as Reliance Home Finance
  • Proceed with applying for the Home Loan online

Reliance Home Finance Home Loan - Method of calculating interest

  • Reliance Home Finance calculates Home Loan on a floating interest rate basis
  • The company adopts the monthly reducing balance to calculate the monthly interest
  • As the Reliance PLR is linked to market rates, the Home Loan interest rates fluctuate along with the market rates.

Reliance Home Finance Home Loan - Method of Repayment

  • By submitting post-dated cheques in advance
  • By registering for an ECS mandate

Reliance Home Finance Home Loan - Service Charges

  • Processing fees: 0.50% to 1.50% of the loan amount
  • Prepayment/foreclosure charges: Nil

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Reliance Home Finance Home Loan Interest Rates FAQs

How does Reliance Home Loan treat the loan instalments in case of a change in the Home Loan interest rates?


Generally, any change in the Home Loan interest rates should bring about a corresponding change in either the EMI or the loan tenure. Borrowers have the option to keep the tenure constant and alter the EMI. It is the most beneficial option for borrowers. However, some borrowers can face liquidity issues if they increase the EMI at frequent intervals. Thus, Reliance Home Finance provides the opportunity of extending or reducing the loan tenure while maintaining the EMI as constant.

What is the maximum loan repayment period available with Reliance Home Finance?


Reliance Home Finance provides maximum Home Loan repayment tenure of 20 years. Under specific circumstances, it can extend, as well to accommodate the changes in tenure because of interest rate fluctuations. The Home Loan repayment tenure available to an NRI borrower is 15 years.

How does Reliance Home Finance charge interest on Home Loans?


Reliance Home Finance offers floating rates of interest on Home Loans. They charge interest based on reducing monthly balances.

This example will clarify things better. The interest for August 2019 is calculated on the closing balance of July 2019. Similarly, the interest calculation for September 2019 has the closing balance of August 2019 as its base.

Is there a better method of calculating Home Loan interest?


The daily reducing balance method of calculating interest followed by commercial banks is a better methodology. This method considers the EMI paid by the borrower during the month for calculation of interest for the particular month. The following example should clear the air. Assume you pay your loan instalment on the 10th day of every month. Therefore, your principal loan outstanding balance reduces accordingly. The daily reducing balance method gives the benefit of interest on your EMI. The monthly reducing balance method does not provide this benefit for the month in which you pay your EMI. The difference might appear minimal in the initial stages, but it cascades into a substantial amount throughout your entire loan tenure.

Is it better to go for a higher EMI or a longer tenure on your Home Loan?


It depends on the circumstances. If you can afford to pay a higher EMI, you should prefer to pay more and close your Home Loan early. Otherwise, it is better to have a longer tenure and invest your excess funds in instruments that can generate better returns. Hence, borrowers usually opt for the longest possible tenure in Home Loans. It provides them with higher liquidity.

What is the maximum amount of loan I can avail in my PMAY loan with Reliance Home Finance?


Reliance Home Finance provides PMAY loan in the Affordable Home Loan product. This product has a loan amount ceiling of  35 Lakhs. Therefore, you can go up to a maximum of  35 Lakhs on your PMAY loan.

Is the PMAY interest subsidy available on the entire loan sanctioned under the scheme?


No, the PMAY upfront interest subsidy is not available on the entire loan. There are ceilings on the maximum eligibility amount for borrowers belonging to different categories. However, borrowers are free to borrow more than the loan amount eligible for PMAY subsidy if they are otherwise qualified. Under such circumstances, the loan amount above the maximum permissible amount is an unsubsidised loan.

Why are the Home Loan interest rates of Reliance Home Finance higher than that offered by commercial banks?


The rates of interest offered by Reliance Home Finance are marginally higher than that provided by commercial banks for borrowers with good records. It is because Reliance Home Finance offers personalised services like doorstep collection of documents. You do not have to visit the branch office even for executing the loan documents. Reliance Home Finance officials visit your home for all these purposes.

Does Reliance Home Finance charge any penalty for foreclosure of Home Loans?


The foreclosure penalty applies only to the fixed rate of interest loans. Reliance Home Finance does not offer Home Loans on a fixed rate basis. Hence, there is no question of imposing any foreclosure penalty charges.

What are the other types of loans offered by Reliance Home Finance?


Besides Home Loans, Reliance Home Finance offers the following loan facilities to its customers:

Loan Against Residential or Commercial Property
Balance transfer of LAP
Top up on LAP