Aditya Birla Housing Finance Limited Home Loan Interest Rates

Introduction

Having a special place to call your own is on everyone’s dream list. It becomes a comfortable place to make new memories with loved ones and feel a sense of security. Aditya Birla Capital Housing Finance Loan (ABCHFL) helps customers in realizing their dream house. They provide loans for various purposes, such as a new home, home construction, home extension, plot and home construction, and home improvement. 

The financing is done at reasonable Aditya Birla Capital Home Loan Interest Rates. Depending on the borrower’s need, they can apply for the type of housing loan they want. The interest rates differ for women applicants, and it also depends on many other factors. The loan does not have any hidden charges, and the paperwork and loan sanctioning process is quick and hassle-free. 

Aditya Birla Capital Home Loan Interest Rates Table

Floating Home Loan Interest Rates

Other Home Loan Interest Rates

Processing fees

Aditya Birla Capital Home Loan Interest Rates Features and Benefits

Features:

• Flexibility- Home loans by ABCHFL are very flexible. They allow the borrowers to choose between EMI and structured repayment based on their requirements and convenience.
• Attractive interest rates: many factors determine the interest rates of home loans for all types of borrowers. One of the factors that determine the interest rate is the occupation (self-employed or salaried). There is even a 5bps discount on the interest rates for women borrowers or co-owners. 
• Customizable: there are many loan schemes available under Aditya Birla Housing Finance. These options allow better customization based on loan requirements. In addition, repayment options can also be personalized. 
• Balance transfer: one of the useful features that Aditya Birla Housing Finance provides is transferring an existing home loan with a different bank to ABHFL. This way, the borrowers will enjoy the services and reduced home loan interest rates by Aditya Birla Capital. 

Benefits:

• The customers of this company get to enjoy doorstep services along with online facilities.
• The borrowers do not get charged with pre-payment charges on floating interest rates.
• The loan processing is hassle-free, transparent, and quick.
• The company does not charge any hidden charges.
• No guarantor is needed to get the loan approved. 
• Apart from providing the borrowers with affordable loans, it also offers different interest rates for women co-owners and applicants. As well as if a woman is a co-applicant, then their salary can also add to the applicant’s eligibility.

Schemes available under Aditya Birla Housing Finance

Aditya Birla Housing Finance has multiple solutions for different housing loan requirements. They differ in terms of purpose, tenure, and interest rates. The loan products available with them are:

Home Loans

This housing loan scheme under Aditya Birla Housing Finance Loan (ABHFL) is available for potential borrowers who want to buy an already built new house or want to construct a house on their owned loan. The scheme is created keeping in mind all the requirements of their borrowers, and the interest rates are set accordingly. 

Loan to property value

Home Construction Loan 

Under the Housing Finance solution, the Home Construction Loan scheme is for borrowers to plan to build a house over their already owned residential property. Here, the borrower should already own the plot where they are planning to construct the home. The loan has flexible Aditya Birla Capital Home Loan Interest Rates and terms such as direct funding the loan amount to the home engineer or architect.

Home Extension Loan

This loan is best for those borrowers who want to extend their home area, more like adding space to their existing property. With this loan, borrowers can easily expand their residential area, and the loan terms are flexible to suit the borrower’s preference. In addition, the loan amount and tenure are customizable, along with the affordable interest rates. 

 Plot and Home Construction Loan

The loan scheme is clear from its name itself. This loan is provided to the borrowers looking to purchase a new plot and construct their house on it. Therefore, the borrower needs to make sure that they need to finish building the house on that land once they take this loan within the next few upcoming years. For repayment purposes, the borrower can repay the loan amount using monthly installments.

Home Improvement Loan

If a borrower wants a loan specifically for improving their existing house, they should apply for the home improvement loan offered by Aditya Birla Capital. The things for which this loan amount can be used are for repair work, adding a new area, or improving the existing home. 

Factors that affect the Home Loan Interest Rates

Credit score: the credit score of the borrower/applicant is one of the main factors that determine the interest rates. One’s credit score is their creditworthiness, loan repayment history, and general financial habits and discipline. A high credit score lowers the home loan interest rates and vice versa. 

Interest rate type: The borrower can choose between fixed, floating, and variable interest rates. With a fixed rate, the interest remains constant throughout the loan tenure. With floating interest rates, the changes depend on a benchmark rate such as RBI rates. If RBI rates fall, then home loan interest rates by Aditya Birla Capital will also decrease. The borrower pays fixed interest for a specific time with variable rates and then changes to floating rates.

Loan tenure: Longer loan tenure leads to higher interest rates for home loans with lower EMIs, and shorter tenure has a lower interest rate. Using an EMI calculator will make it easy to determine the right combination of loan tenure, amount, and interest rate. 

Loan amount: As the loan amount goes higher, the interest rates for home loans will also go higher. 

LTV ratio: The loan-to-property ratio is the percentage of the property value that is financed. So, if the LTV ratio is high, the loan amount is also high, leading to higher interest rates. So to reduce the interest rates for home loans, try to make a larger down-payment.

Income stability: A borrower’s job and income stability are very important to get the loan sanction. It also plays a part in determining the home loan interest rates. A newly employed borrower will not be able to get a loan. At least six months of a regular and stable income is required.

Co-applicant: If there is a co-applicant, then their income stability will also be assessed before deciding on the interest rate. If the co-applicant is a woman, then the interest rates can get a 5 bps discount.

FAQs

What are the ways to apply for a home loan with Aditya Birla Capital Housing Finance?

There are two methods:

• • Offline method: for this, the applicant will have to go to the closest branch. There they will need to submit the form for the loan application along with all the required documents. After that, the loan application can be downloaded from the official website of the company. 
  • Online method: for a more easy application, the borrower can apply using the official website. There they will need to provide all their information and details. The loan officers will further guide through the process.

What factors are considered by ABHFL to determine my eligibility for the home loan?

The eligibility is checked based on the LTV ratio and repayment capacity. The repayment capacity is checked by referring to the following information concerning the primary applicant:

• • Age of the applicant
  • Income of applicant and co-applicant
  • Job and income stability of the primary applicant
  • Credit score
  • Other financial liabilities

How long does it take to finish the processing of the loan application?

It takes around 15 working days to complete the processing of the loan application and the required documents.

Is there any minimum loan amount with the Aditya Birla Home Loan?

There is no minimum limit on loan amount under the ABCHFL scheme. However, the borrower must keep an eye out in case of any announcement regarding the minimum limit based on changes in internal policy and guidelines of ABHFL. As the loan amount reduces, the interest rates for home loans also reduce.

How does the prepayment option work?

Aditya Birla Home Loan Scheme allows prepayment of the loan amount. And for floating interest rates, there are no prepayment charges. The borrower can also start pre-payments after 12 months from the date the loan amount was disbursed. There is also a part pre-payment option. For this, the pre-payment can be made exactly 12 months before the loan tenure ends. 

Does the interest change?

The interest rates are subject to changes. According to the company’s re-pricing policy, the interest rates are assessed from time to time to check if any changes need to be made or not. 

Is it necessary to have a co-applicant when applying for a home loan?

Yes, to apply for the Aditya Birla Capital Home Loan, a co-applicant is mandatory. 

In the case of a co-owner of the property, the co-owner should be the home loan’s co-applicant. And otherwise, a sole-owner should take a close or immediate family member as their loan co-applicant.

Is there any tax benefit on the home loan amount?

The Indian residents are eligible for tax benefits on both the home loan interest and the principal amount. The benefits are under the Income Tax Act.

Do the interest rates change with the loan amount?

Yes, the loan amount is one of the determinants of the Aditya Birla Capital Home Loan Interest Rates. The table below is an example of how the interest changes:

The lowest EMI possible under the Aditya Birla Home Loan scheme is Rs. 805 per lakh. 

How can I contact Aditya Birla Home Loan people?

In case of queries, the borrower can contact the Aditya Birla Home Loan customer care using any of the following modes:

• • Give a call: Using the customer care toll-free no. 1800-270-7000.
  • Send a message: Type “House” and send the text to 567679. The loan representatives will revert on receiving the text.
  • Send an Email:  Write at housingfinance@adityabirlacapital.com.