Aditya Birla Housing Finance Home Loan Interest Rates

Following are the features of Aditya Birla Housing Finance Home Loan:

• Home Loans for purchase of a new house or flat
• Loans for buying a second-hand home or apartment
• Home Loans for construction of house/flat
• Home improvement and extension
• Repairs and renovations to existing homes
• Loans for purchase of plots and constructing houses thereon
• Flexible loan tenure extending up to 30 years
• Attractive interest rates
• Relaxed eligibility norms
• Speedy processing
• Transparent service charges
• Balance transfer facilities available
• Doorstep services on offer
• LTV in the range of 75% to 90%
• Available at select locations across India.

Aditya Birla Housing Finance has a specific reference rate known as ABHFL Reference Rate (ARR) for pricing its Home Loans. This rate is a floating rate linked to market-related reference rates. As the market rates fluctuate, the ARR goes up and down. Thus, the housing rate for the individual increases or decreases accordingly.

The ARR with effect from October 15, 2018, is 16.25%.

The individual Home Loan interest rate structure is as follows:

• Salaried Borrowers - 9% to 9.75%
• Self-employed borrowers - 9% to 12.50%

Aditya Birla Housing Finance Home Loan Interest Rates - Points to Note

• Aditya Birla Housing Finance offers three different types of interest rates, fixed, floating, and variable.
• The rates of interest can vary from one borrower to the other depending on various factors.
• The credit rating of the borrower
• Repayment capacity
• Nature and value of security offered
• Repayment track record
• Industry trends
• The ARR is subject to review at periodical intervals
• A variation in the ARR can bring about a change in the individual Home Loan rate. However, existing borrowers who have opted for the fixed loan rates will not be affected in any way.
• The company may levy a penalty for delayed payments and defaults if any
• The rates of interest for the Affordable Housing Scheme and PMAY loans are the same as that of the conventional Home Loans.

Aditya Birla Housing Finance has facilities to calculate your Home Loan eligibility and loan EMI on its website. These calculators help customers plan their Home Loans and other liabilities accordingly.

Home Loan Eligibility Calculator

The Home Loan eligibility calculator enables customers to calculate their eligibility and apply for the Home Loan, as well.

• Access the website of Aditya Birla Housing Finance
• Indicate your choices as they appear on the screen
• Provide details of your income, turnover, profit, and other loan liabilities
• Indicate the loan tenure you expect
• You get an in-principle approval
• You can apply for the Home Loan from the same page by furnishing your contact details
• Aditya Birla Housing Finance Home Loan officials will call to complete the formalities

Home Loan EMI Calculator

This calculator helps customers to determine the EMI amount for their Home Loan.

• Select the EMI Calculator on the webpage
• Enter the loan amount, the repayment tenure, and rate of interest
• You get your EMI instantly

MyMoneyMantra has a similar EMI Calculator on the Financial Tools section of its home page. This calculator gives you the breakup of principal and interest repayment over the entire Home Loan tenure.

Applying for your Aditya Birla Home Loan online is a convenient process. Click on the 'Apply Online' on the official webpage of Aditya Birla Housing Finance. Customers have to submit their details following which Aditya Birla Housing Finance officials call back to complete the formalities.

MyMoneyMantra enables applicants to apply for their Aditya Birla Home Loan from their website. The advantages of using our website are as follows:

• The information submitted by the customers is confidential
• Get the advantage of comparing similar Home Loan products of more than 90 competitors
• MyMoneyMantra Home Loan customer service executives help you with their guidance

Aditya Birla Housing Finance calculates interest on the monthly reducing balance method. Almost all the housing finance companies calculate Home Loan interest in this fashion. Commercial banks adopt the daily reducing balance method. This method is comparatively more beneficial to the customers, as it allows the customers to get the benefit of interest on the EMIs paid during the month.

Modes of Repayment

The following modes of repayment are acceptable in Aditya Birla Housing Finance Home Loan:

• Submit post-dated cheques for the EMI amount in advance. However, the borrower has to ensure to replenish the cheques on exhaustion.
• Register for an ECS mandate. This mode of repayment is the best one available because it provides the Company with options to increase the EMI at any time.

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.