The interest rate applicable to any loan product of Aditya Birla Housing Finance Limited (“ABHFL”) shall be determined with reference to the following factors:

• The rate of interest shall be determined based on the cost of borrowed funds, tenor of loan, liquidity conditions prevailing in the market, cost of operations, credit risk arising from the borrower or pool of borrowers and the minimum margin.
• The customer level credit risk premium as mentioned above shall be based on credit and default risk of the customer as assessed from profile & risk rating of customer, earning and repayment ability of the customer, nature and value of primary and collateral securities, repayment track record of the customers, external ratings of the customers, industry trends, Credit Bureau ratings amongst other factors.
• The rate of interests for the same product and tenor availed during same period by different borrowers need not be standardized. It could vary from borrower to borrower depending upon consideration of any or combination of above factors. The annualized rate of interest would be intimated to the customer. The interest rates would be offered on fixed, floating, variable basis. The ABHFL reference rates (“ARR”) for the floating rates would be reviewed on a periodic basis and revised interest rates will be intimated to the customer. The ARR is determined by a combination of customer segment, customer profession and product and is determined from time-to-time basis decision in Asset Liability Management Committee.
• In case of staggered disbursements, the rate of interest would be subjected to review and the same may vary according to the prevailing rate at the time of disbursement or as may be decided by ABHFL.
• The rate of interest may also be reviewed, wherever applicable, subject to applicable regulatory guidelines, during the tenor of loan for any significant increase in credit risk.

ABHFL Reference Rate (ARR) (effective from 1st March 2023) is as under:

Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Loans

• The ABHFL Rate of Interest (“ROI”) shall be determined based on the cost of borrowed funds, tenor of loan, liquidity conditions prevailing in the market, cost of operations, credit risk arising from the borrower or pool of borrowers and the minimum margin. Please refer the Policy for determination of Interest Rates, Processing and Other charges placed on our website for further details.
• The Rate of Interest for your loan is linked to the ABHFL Reference Rate and the same may be revised from time to time.
• The impact of change in ROI shall be given on Loan Tenure or EMI or both as the case may be, depending upon customers’ repayment capacity.
• Any change in ROI will be intimated to the customers. Please connect with us on call at 1800 270 7000 or email us at care.housingfinance@adityabirlacapital.com in case you wish to change the options offered.

The following are the various impacts that can take place on your loan depending on multiple parameters:

• Revision in Tenure with EMI Constant
• Revision in Tenure & EMI
• Revision in EMI

Illustration:

Scenario: Customer is a Salaried individual with a Home Loan from ABHFL with the following terms:

Loan Amount: Rs. 30,00,000

Loan Tenure: 240 months (20 years)

ROI: 9.00%

EMI: Rs. 26,992

The calculated EMI is Rs. 26,992 as per the above parameters.

Scenario: Loan has been paid for 10 months and there is still another 230 months to repay the same. After 10 months, the loan details are:

Loan Outstanding Amount: Rs. 29,53,536

Balance Loan Tenure: 230 months

Scenario: Reference Rate increases by 0.25% due to which ROI has also changed. Revised ROI will be: 9.00% + 0.25% = 9.25%

Considering the Loan Outstanding Amount, Remainder Loan Tenure & Revised ROI, the Revised EMI = Rs. 27,463

Increase in EMI = Rs. 27,463 (Revised EMI) – Rs. 26,992 (Original EMI) = Rs. 471.

Impact of Rate increase by 0.25% = Rs. 471 (Difference in EMI) x 230 months (Remainder Loan Tenure) = Rs. 1,08,349

Ideally, increase in tenure keeping EMI constant would be looked at (provided there is no tenure breach). In such a scenario, tenure would be increased by 12 additional months and the additional outflow is Rs.3,23,901 (12 x 26,992).

The interest rate range of contracted loans for the quarter ended 31st March 2024 for different categories of advances granted to individual borrowers along with mean interest rates for such loans :