Home Loan - Rates & Charges
The "interest" component in the home loan indicates the price that is charged over and above the "principal" amount in a home loan. The amount of interest depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent or borrowed.
At IIFL Home Loans, the home loan interest rate is linked to the Benchmark Prime Lending Rate, also known as BPLR, which helps us ensure transparency and appropriate pricing of the home loans.
Prospective home loan borrowers have the flexibility to choose either fixed interest or a floating interest rate.
The rate of interest varies for different borrowers as our housing finance team considers various parameters such as credit score, borrower profile, loan amount, property type, and others. All these factors contribute to the margin being higher or lower at the time of onboarding the customer.
- Fixed Interest-based Home Loan: Applicants can opt for a fixed interest rate that remains constant for the entire loan term. It is basically unaffected by the external market conditions. Borrowers who aim to pay a fixed monthly instalment & want to avoid the fluctuations can opt for a fixed interest-based home loan.
- Floating Interest-based Home Loan: As the name suggests, the rate of interest changes as per the changes in the market. As a borrower, if you are well-informed about the market conditions and expect the rates to fall in future, it is beneficial for you to select a floating interest rate on home loan.
|Type of Charges||Pricing|
|Processing Fees||Up to 1.75%|
|Collateral Evaluation Charges in Home Loan Non APF||Rs. 3000|
|Late Payment charges||18% per annum of outstanding EMI|