Shriram Housing Finance Home Loan Interest Rates

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 Shriram Housing Finance Home Loans, it 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 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 Home Loan 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 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%.

• 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.

Additional Info: Also check Banglarbhumi West Bengal Land Record

• 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.

Additional Info: Also check How to Apply for Pradhan Mantri Awas Yojana

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.

Additional Info: Also check Documents Required For Home Loan

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.

Additional Info: Also check HDFC Home Loan EMI Calculator

Shriram Housing Finance website has an Home Loan 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

Additional Info: Also check SBI Home Loan EMI Calculator

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.

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.

Additional Info: Also check Home Loan Tax Benefit