Aadhar Housing Finance Home Loan Interest Rates
Aadhar Housing Finance home loan interest rates are different for salaried and self-employed applicants. Aadhar Housing Finance offers home loans at 11.75% - 16.50% p.a. interest rate to salaried employees and 12.75% to 17% p.a. to self-employed individuals.
About Aadhar Housing Finance
Aadhar Housing Finance Limited, previously known as DHFL Vysya Housing Finance Ltd, is an affordable housing loan service provider having a pan India presence. The highlight of Aadhar Housing Finance is that it caters to the informal sector that does not have proper access to banks and HFCs. It is because this section of people is unable to provide documentary evidence of their income generation.
Aadhar Housing Finance Limited, established in 2010, merged with DHFL Vysya on November 20, 2017. This merger enhanced the company's reach and made it accessible to almost all sections of society across India. The Company has more than 300 branches today, as it serves a client base of more than 133,000.
You can also Apply for Rs. 35 Lakh Home Loan EMI
Aadhar Housing Finance Home Loan
Aadhar Housing Finance provides various Home Loan options for its clients from all walks of life. This Company has loan products for both the salaried employee and self-employed persons with income levels as low as 5,000 per month. The skilled artisans and professionals who do not have IT return to prove their income generation benefit the most from Aadhar Housing Finance Home Loans. The Company employs innovative methods to gauge their income levels. Hence, Aadhar Housing Finance is a preferred financing option for such customers.
Additional Info: Also check AnyRoR Gujarat Land Record
Aadhar Housing Finance Home Loan - Features and Benefits
| Target group |
|
| Purpose |
|
| Quantum of loan | A maximum amount of 1 Crore |
| The margin on the Home Loan | 20% |
| Rate of interest | Reasonable rates of interest |
| Loan tenure | Flexible tenure up to 30 years |
You can also checkthe Documents Required For Home Loan
How to Calculate Bajaj Finserv Home Loan Rate?
Aadhar Housing Finance is a non-banking housing finance company. Hence, it does not offer interest structures such as MCLR-linked rates or RLLR-linked structures. Aadhar Housing Finance follows its Retail Prime Lending Rate for deciding the Home Loan interest rate.
Presently, Aadhar Housing Finance offers Home Loan interest rate in the range of 11.75% to 16.50%.
A Few Points to Note
- Aadhar Housing Finance offers floating, fixed, and dual/special rates of interest on Home Loans
- The interest rates on Home Loans are at a discount over the Aadhar Retail Prime Lending Rate
- All the rates are linked to the Aadhar RPLR. However, the floating rates vary along with any change in the RPLR.
- The Home Loan agreement includes an interest rate reset clause. This clause ensures that the individual Home Loan interest rate varies from the date of reset.
- The discount on the RPLR depends on various factors. These factors include the following:
- The occupation of the borrower
- The nature of income generation
- The repayment capacity of the borrower
- The credit rating
- The value of security offered
- The amount of loan
Additional Info: Best Home Loan Interest Rates
Aadhar Housing Finance Home Loan - Fees & Charges
| Type of Charge | Amount of Charges |
|---|---|
| Processing fee | 3,500 |
| Administrative charges | 1.50% of the loan amount |
| Subsequent technical verification | 500 (only in cases involving construction) |
| Cheque bouncing charges | 500 per instance |
| Penal interest on default | 1.50% of the default amount per month for the default period |
| Cheque/ECS swapping charges | 500 |
| No dues certificate charges | 500 |
| Copy of documents | 500 |
| Prepayment penalty |
|
| Document retrieval | 2,000 |
| Statement of account | 500 |
| Conversion fee |
|
| Loan cancellation | 1,500 |
You can also Apply for LIC HOUSING FINANCE Home Loan
Aadhar Housing Finance Home Loan - EMI Calculation
Aadhar Housing Finance Limited offers facilities to calculate your Home Loan eligibility and EMI online.
Loan Eligibility Calculator
- Access the official website of Aadhar Housing Finance
- Select Loan Eligibility Calculator
- Enter the details requires like loan tenure and interest rate
- Provide details of your income and obligations
- Similarly, provide these details for your co-applicant, as well
- Calculate the eligibility before applying for the Home Loan
Loan EMI Calculator
Enter the details like loan amount, interest rate, and loan tenure to calculate the EMI of your Home Loan.
MyMoneyMantra offers similar EMI Calculator.
Aadhar Housing Finance - Interest Calculation and Repayment Modes
Aditya Birla Housing Finance is spread over the semi-urban and small towns in India. Hence, it is one of the ideal financial institutions to cater to PMAY borrowers. The National Housing Bank is the Central Nodal Agency for the Company to claim the subsidy amount.
Every PMAY borrower is eligible for an upfront interest subsidy. The subsidy depends on the type of borrower, the loan amount, and the rate of allowance.
Category of Borrower
The annual family income from all sources is the criterion that decides the type of borrower.
- Economically weaker section (EWS) - Income up to 3 Lakhs
- Low-Income Group (LIG) - Income higher than 3 Lakhs <= 6 Lakhs
- Middle-Income Group-I (MIG-I) - Income > 6 Lakhs and <= 12 Lakhs
- Middle-Income Group-II (MIG-II) - Income > 12 Lakhs and <= 18 Lakhs
Subsidy Qualification
- Borrowers belonging to EWS and LIG are eligible for a maximum subsidy of 2.67 Lakhs. The loan amount eligible for calculation of the subsidy is equal to 6 Lakhs.
- MIG-I and MIG-II receive a maximum subsidy of 2.35 Lakhs and 2.30 Lakhs respectively. The corresponding loan amounts are 9 Lakhs and 12 Lakhs.
Subsidy Treatment
- The subsidy is an upfront interest subsidy. Hence, it is credited to the loan account immediately.
- This credit reduces the loan liability of the borrower. Thus, the EMI reduces considerably, as well.
You can also Check Aadhar Housing Finance Home Loan EMI Calculator
Aadhar Housing Finance - PMAY
Aadhar Housing Finance is an active player in PMAY. As it is, Aadhar Housing Finance caters to the informal sector. PMAY loans are similar to regular Home Loans in almost every respect. However, they have specific eligibility criteria. Secondly, there is an element of interest subsidy. Aadhar Housing Finance is controlled by the National Housing Bank in matters concerning subsidy claims.
Eligibility Criteria - Income Levels
- Economically Weaker Section (EWS) - Families having an annual income from all sources up to 3 Lakhs comprise this category of borrowers.
- Low-Income Group (LIG) - The upper limit of income for this category of borrowers is 6 Lakhs.
- Middle-Income Group-I (MIG-I) - This category comprises of borrowers earning income up to 12 Lakhs.
- Middle-Income Group-II (MIG-II) - This creamy layer constitutes borrowers having an annual income from all sources up to 18 Lakhs.
PMAY Subsidy
All PMAY borrowers are eligible for interest subsidy depending on the category they belong to.
| Category of Borrower | EWS/LIG | MIG-I | MIG-II |
|---|---|---|---|
| Loan amount permissible for calculating the subsidy | 6 Lakhs | 9 Lakhs | 12 Lakhs |
| Rate of allowance | 6.50% | 4.00% | 3.00% |
| The maximum amount of grant | 2.67 Lakhs | 2.35 Lakhs | 2.30 Lakhs |
Additional Info: Also check How to Apply for Pradhan Mantri Awas Yojana
Aadhar Housing Finance Home Loan Interest Rates FAQs
Aadhar Housing Finance offers the following different types of interest calculations:
- The Floating Rate of Interest: This rate is linked to the Aadhar Housing Finance RPLR. The offered rate is at a discount on the RPLR. The rate varies whenever there is a change in the RPLR.
- The Fixed Rate of Interest: The rate of interest remains fixed throughout the tenure of the Home Loan.
- The Dual/Special Rates of Interest: In this combination, the interest rates remain fixed for a specific predetermined period. It switches over to a floating rate of interest after the expiry of the fixed period.
The floating rates of interest bring the following benefits to the borrower:
- The rates of interest vary according to the RPLR. If the reference rate goes down, the effective rate of interest on the Home Loan goes down, as well.
- The floating rates of interest are the most attractive of all three modes of interest
- There is no foreclosure penalty on the Home Loans having a floating rate of interest
The fixed rate of interest offers the following benefits:
- The rate of interest remains the same for the entire repayment tenure of the loan
- The tenure does not change, and neither does the EMI
- This mode of interest calculation does not affect your budget because it enables you to determine your liability.
The special/dual rate of interest gains significance during times when the borrower is unsure of the movements of the market rates.
- This rate offers the benefits of both fixed rated and floating rates of interest
- There is no foreclosure penalty if the borrower closes the loan during the floating rate tenure
Drawbacks of the floating rate of interest:
- The rates keep changing frequently. Hence, the EMI or the loan tenure can vary continuously. It can throw your budget off gear.
Drawbacks of a fixed rate of interest:
- The fixed rates of interest are higher than the floating rates of interest
- You end up paying more over the entire loan tenure
Drawbacks of special/dual rate of interest:
- The rate of interest is fixed for a specific period. If the floating rates remain below the fixed rates during this tenure, the borrower ends up with higher liability.
The Home Loan comes with an interest reset clause. This reset clause is at fixed, predetermined intervals. It implies that the rate of interest on the individual Home Loan does not change unless the rate is reset. Therefore, every change in the RPLR does not affect the interest rate on the Home Loan. On the reset date, the individual Home Loan rate increases if the RPLR increases and vice versa.
Generally, any change in the rate of interest should either vary the EMI or the loan repayment tenure. Aadhar Housing Finance prefers to maintain the EMI constant while modifying the loan tenure. However, Aadhar Housing Finance can opt to change the EMI, as well. Borrowers can prefer either of the options at the time of executing the Home Loan contract.
Usually, all housing finance companies calculate Home Loan interest on monthly reducing balance method. The banks have a better way of calculating interest. They use the daily reducing balance method. It is a better method because it gives the benefit of interest on the EMI paid during the month.
This example can explain things better.
Aadhar Housing Finance calculates Home Loan interest for September 2019 on balance outstanding on August 31, 2019. The instalment paid during the month does not get the benefit of interest for the month. It could be a small amount, but it cascades into a substantial amount over the entire tenure of the loan.
Salaried employees and self-employed individuals having documented records of income do not have any issues. However, Aadhar Housing Financecaters to the informal sector that does not have any documented source of income. This sector comprises daily labour, skilled artisans, and service providers like autorickshaw drivers. Aadhar Housing Finance conducts market surveys and discreet interviews to arrive at the income-generating capacity of such an informal sector.
Aadhar Housing Finance is a non-banking housing finance company that does not accept deposits from the public. It depends on its net worth and bank borrowings for financing the borrowers. Secondly, it caters to the informal sector where risk perception is considerably high. Therefore, the rates of interest on the Aadhar Housing Finance Home Loans are higher than what the banks offer.