The interest rate applicable to any loan product of Aditya Birla Housing Finance Limited (“ABHFL”) shall be determined with reference to the following factors:
Home Loans | Salaried | Self Employed |
Rate of Interest | 8.80% to 14.00% |
9.10% to 14.75% |
Non Home Loan | Rate of Interest |
Loan against property | 10.00% to 16.50% |
Lease rental discounting | 9.50% onwards |
ABHFL Reference Rate (ARR) (effective from 1st March 2023) is as under:
ARR |
Segment Cohort |
ARR applicable |
ARR 0 |
All segments – disbursed prior to Feb’ 2021 |
18.75% |
ARR 1 |
Prime - Home Loan - Salaried |
13.30% |
ARR 2 |
Prime - Home Loan - Self Employed |
14.90% |
ARR 3 |
Prime - Non Home Loan - Salaried |
14.10% |
ARR 4 |
Prime - Non Home Loan - Self Employed |
15.10% |
ARR 5 |
Affordable - Home Loan - Salaried |
13.80% |
ARR 6 |
Affordable - Home Loan - Self Employed |
15.40% |
ARR 7 |
Affordable - Non Home Loan - Salaried |
15.10% |
ARR 8 |
Affordable - Non Home Loan - Self Employed |
16.00% |
ARR 9 |
Informal - Home Loan - Salaried |
15.80% |
ARR 10 |
Informal - Home Loan - Self Employed |
18.80% |
ARR 11 |
Informal - Non Home Loan - Salaried |
16.80% |
ARR 12 |
Informal - Non Home Loan - Self Employed |
18.20% |
ARR 13 |
Construction Finance |
18.90% |
ARR 14 |
HL – Staff Salaried |
6.25% |
ARR 15 |
Institution Finance |
13.00% |
Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Loans
The following are the various impacts that can take place on your loan depending on multiple parameters:
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 :
Contractual ROI % |
Home Loans |
Non Home Loans |
Minimum |
8.35% |
8.75% |
Maximum |
17.00% |
17.50% |
Mean |
10.00% |
12.04% |
The Annual Percentage Rate (APR) is a method to compute annualised credit cost which includes interest rate and processing fee.
The APR calculator does not include charges such as prepayment charges, etc.
To calculate the same, please click here to download the APR calculator.
Disclaimer: All loans will be at the sole discretion of ABHFL.