Reliance Home Finance Loans Home Loan Interest Rates

Reliance Home Loan Finance Interest Rate

Reliance Capital Limited is a non-banking financial institution founded almost 35 years ago in Ahmedabad, Gujarat and is a part of Reliance Group. The headquarters was later shifted to Mumbai in 2006.

Reliance Capital services includes Wealth Management, General Insurance and Commercial insurance, Home Finance, Corporate Finance, Asset Management and Mutual funds etc.

Reliance Capital Interest Rates

Interest rates are of two types which is Fixed interest rate and Floating interest Rate. The type of interest rate applicable to any loan depends on the choice of the borrower and both come with their own benefits and challenges.

Fixed Interest Rate: In Fixed interest rate scenarios, the interest rate for the whole tenure of the loan remains the same regardless of the market conditions and other economic decisions and factors impacting the Bank Finances or the whole loan sector in general. FIxed interest rate provides more stability to the process and is usually a little lower when compared to floating interest rates. 

The borrower has the confidence to close the deal within the due dates as the amortization schedule is pretty clear as the interest rate does not change and the path is very clear to proceed. Fixed interest rate allows the borrowers to take informed decisions and also helps immensely in planning things well ahead in time.

Floating Interest Rate: Contrary to FIxed interest rates, floating interest rate is where the interest rates can change over time in respect to RBI changing the interest rates or any other factor which can impact the lending business and markets. The financial institutions do outline pretty much all the criteria which could influence the interest rates but the final terms and conditions will be determined at the time loan is availed.

In this option the borrowers have more risk involved but comes with an anticipation of lower interest rates in future reducing the Interest amount paid by the individual significantly. The interest rates can also increase in future and totally depends on how the economy is, the lending business, financial institution’s operations and a plethora of other contemporary factors.

Scheme-Wise Home Loan Interest Rates

Options when applying for Reliance Capital Home Loans

Reliance capital offers four easy options to apply for a Home loan depending on the borrower’s needs and requirements. The below are the scenarios to choose from the Reliance Capital official website.

Have identified a property and need a Loan sanction: This is for those who have already selected a property to purchase and are looking for a loan amount to be sanctioned.

Yet to identify a property and want a principle sanction: Borrowers in this case have not selected any properties yet and are looking for both property and Loan amount.

Loan against existing property: This one is self-explanatory, Individuals who need a loan against their property can get up to 80% loan to value ratio with Reliance Capital depending on the final terms and conditions of the loan.

To finance my project: When individuals have an ongoing development/construction project and are in need of additional finances. Reliance Capital has an exclusive set of options for this category and provides the best LTV.

Home Loan Eligibility and Factors affecting

Monthly Income: Loan amount eligibility depends significantly on the monthly income of the individual, as the higher the borrower earns the more amount he/she is eligible to borrow.

Age: An individual in their peak age has decades left to pay off the loan and also gets to enrich the maximum tenure available via the bank/FI. A person in their 30’s has more chance to be eligible compared to a person in their 50’s.

Property Status: Property value and location matters a lot to the lenders. A good quality property in a well reputed location or a gated community will increase the eligibility chances.

CIBIL Score: CIBIL basically shows how good the borrower is in repaying the loans in their past. The score increases when there is a good record in the customer profiles, like no delays in EMIs or not taking multiple loans simultaneously and other such factors.

Employment: For salaried individuals lenders require at least 3 years of experience to be eligible for a Home loan application. Sometimes industry and job stability are also taken into consideration.

Private employees working in well established brands or MNCs which are part of Fortune 500 Index also hold a lot of weightage. A long standing career full of experience and achievements, good reputation can increase the eligibility chances substantially.

Professional Status: Entrepreneur, Businessmen and all self-employed professionals need to submit the Bank statements, Business record, financial and professional details as part of eligibility criteria and upon successful submission once can expect to increase the eligibility potential.

Relationship with Lender: If the borrower has taken multiple loans in the past from the same lender and if both parties have a good understanding with each other then there is a high chance to negotiate and bring out the best for both!

Home Loan Documents

Proof Of Identity: Valid Indian Passport or PAN card or Voter’s Identity Card or Driving License. The Government issued Identity Card with Applicants photo on it, Aadhar Card.

Proof Of Address: Valid Indian Passport or PAN card or Voter’s Identity Card or Driving License. Most recent Utility Bills like electricity or telephone bill, postpaid mobile phone or Gas or water bill are also acceptable.

Updated Property Tax Receipts, Savings Bank Account Statement from Bank or Post Office. Allotment Letter of Accommodation or Government issued Leave and License agreement to the employee.

Proof Of Signature: Valid Indian Passport or  PAN card or Driving License or Bankers’ Verification and Sale Deed registration. Government issued Identity Card with the Applicants photo on it, Government employee card.

Salaried Individuals: Salaried applicants to submit Last 3 months salary Pay slips or last 2 years Form 16 along with Salary Certificate. Salary Account last 6 month IT Return Bank Statement. If current job tenurity is less than 12 months then Appointment or Confirmation Letter is also required.

FAQs

What is the maximum eligible Tenure available at Reliance Capital?

20 Years is the maximum Tenure.

What is the lowest available interest rate?

9.75% is the lowest interest rate one can avail, however, the final interest rate will be decided at the time when loan is availed.

Who is eligible for a Home loan?

All individuals who are private employees or self-employed are eligible for a Home loan, although the final terms and conditions will depend on the amount of loan requested, property status etc.

Who can avail a Top Up loan?

Top Up loan is available for existing loans at Reliance Capital and for Home loan Balance Transfer applicants.

Is fixed interest rate better v/s a floating rate?

Both the options come with their pros and cons. Fixed interest rate provides stability and confidence of repayment. Floating interest rate involves more risk but can help individuals in saving a huge chunk paid as interest amount if the rates go down in near future.