IIFL Home loans Interest Rates

India Infoline limited is a Mumbai headquartered housing financial services company founded in 1995 by Nirmal Jain. The company has investors and partners spread across the globe and has a very well established international presence.

IIFL is regulated by National housing bank and has achieved the milestone of serving more than 1 lac customers with a streamlined service full of Fairness, Integrity and Transparency.

Interest Rates

Interest rate is the most deciding aspect in any kind of loan application as it influences all other variables involved. Interest rate is of two types i.e Fixed and Floating/Variable interest rate. As the terms are self-explanatory, Fixed is where the interest rate does not changes over time and Variable is where the interest rate changes as per the market conditions and dozens of other factors influencing banking operations.

Now the million dollar question is, what is the interest rate I have to pay for my Home loan? Unfortunately, there is no straightforward answer to it as it is done on a case by case basis and banks or housing financial companies take into consideration multiple parameters including one’s CIBIL score, loan tenure, loan amount, property valuation, location and your history with previous loan repayments if any. Once all the factors are properly examined by the bank an interest rate is finalized for the individual.

The interest paid by the applicants gradually over time amounts to a very big number, hence, it is very important to do the calculations beforehand and take an informed decision, prominently in the case of fixed interest rates(although lenders only provide this for a period of a couple of years).

Loan amount, tenure, EMI and interest rate are all proportional to each other. If the loan tenure selected is really high then the interest rate offered is usually lower than average and vice versa. With time the EMI amount contributes more towards the principal value and the interest amount decreases simultaneously. Now let’s dive into the interest rates in accordance with available schemes at IIFL.

IIFL Home loan types and Interest Rate charges

There are 6 variants of Home loans available under one roof IIFL

• Pradhan Mantri Awas Yojana
• Home Loan
• Home Improvement Loan
• NRI Home Loan
• Balance Transfer

Pradhan Mantri Awas Yojana

The PMAY scheme launched by the Government of India has brought a sea change in the economically weaker segment and low income groups as the subsidized interest rate has attracted a lot of individuals who were reluctant to proceed with the ongoing interest rate offered by the market. The LIG and EWS groups can now save up to 2.67 lacs via a discounted interest rate offered by the PMAY scheme and processed with the help of two channels NHB and HUDCO.

Eligibility for the subsidized interest rate

• Applicant, family member or household must not own a pucca house in any parts of the country on his name or any of his family member’s.
• Applicants should not have availed any central or state assistance under any housing scheme from the Government.

IIFL Home Loan

Home loan service offered by IIFL has a very good value proposition and a customized offer for all individual needs and purposes. The maximum loan tenure available is 25 years and with a maximum age of up to 75 years.

Home Improvement Loan

Home Loan can not only be availed for a new house but as per this Home Improvement Loan scheme offered by IIFL one can also request a loan application for general maintenance and modification of the property to meet the challenging needs of the modern era. One can also go for Home expansion under this loan service and add that extra space to the overall structure of the house.

NRI Home Loan

The NRI Loan scheme is a specially designed product which totally focuses on the individuals who fall in the category of NRI, PIO or IOC and provides technical and legal counselling to the applicant to help them make an informed decision. The procedure is hassle free and requires as little interaction as possible, although there are quite a few eligibility rules specific to this one.

Eligibility

• Land purchased should be for residential purpose only
• Should be situated within the municipal limits
• Land purchased must be a non-farm/non-agricultural land
• Residence should be in the U.S.A & Canada, European Countries (except – Spain, Greece, Portugal, and Italy), East Asian Countries, Middle East or Australia & New Zealand.

Balance Transfer

Home Loan balance transfer is for those who have already availed a home loan in the past but are unsatisfied with the offering of the current lender and want to move to a better one with a lesser interest rate and other benefits and features. The best part at IIFL is that the maximum age limit is 75 and if that particular factor is causing any hindrance to the applicants then they can happily with their lender to IIFL and avail the extra benefits.

Rates and Charges

Note: The above charges are exclusive of applicable taxes, if any.

Schedule of Charges on Foreclosure or Pre-Payment:

Foreclosure Charges in case of Full Prepayment / Loan Foreclosure

Pre-payment Charges in case of Part Prepayment

FAQs

What is the lowest available interest rate at IIFL?

Interest rate starts from 8.2% and changes with plenty of other factors.

How is the PMAY subsidy provided?

PMAY subsidy is provided via two channels, National Housing Bank and Housing Urban Development Cooperation. 

Can the LAP be taken for business purposes?

Yes, LAP can be taken for any purpose the individual wants.

What are the core values of IIFL?

Fairness, Integrity and Transparency are the core values at IIFL.

How does the interest reduce over time with monthly reducing balance?

The EMI amount consists of two parts, i.e, the principal and amount and interest amount, with time as the principal gets cleared the interest charged on it decreases as it is percentage based.