Shriram Housing Finance offers home loans up to Rs. 10 Crores at an affordable interest rate. Shriram Housing Finance home loan interest rates start from as low as 8.9% p.a., depending on the loan amount, borrower’s eligibility, credit score and other factors.
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%.
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 |
Additional Info: Best Home Loan Interest Rates @6.70%
Additional Info: Also check Banglarbhumi West Bengal Land Record
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:
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:
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:
Additional Info: Also check Home Loan Tax Benefit
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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.
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.
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.
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.
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.
If you are eligible for a PMAY loan, you will get interest subsidy.
The prime eligibility norms are as follows:
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.
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.
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.
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.