Housing Finance

Pre-EMI interest is the interest charged on the disbursed portion of the loan amount until the start of the EMI repayment schedule. It is calculated on a monthly basis and is typically payable from the date of each disbursement.

Pre-EMI interest is charged because the borrower can use the disbursed portion of the loan amount even before the EMI repayment schedule begins. This gives the borrower a head start on their projects, such as home construction or renovation, and allows them to generate income from the property (if applicable) before they have to start making full EMI payments.

The amount of pre-EMI interest charged will vary depending on the loan amount, interest rate, and disbursement schedule. Borrowers should carefully review their loan agreement to understand the pre-EMI interest charges that will apply to their loan.

ABHFL calculates home loan interest rates on a monthly, reducing balance basis. The interest rate applied is the prevailing rate of interest (ROI) on your loan, which is linked to our internal floating reference rate, referred to as the ABHFL Reference Rate (ARR).

A step-up home loan is a type of mortgage in which the EMIs start low and gradually increase over the loan term. This type of loan is particularly suitable for borrowers who are in the early stages of their careers and expect their income to increase over time. The lower initial payments can make it easier for borrowers to qualify for the loan and afford the payments in the early years. As their income increases, they can afford the higher payments without straining their budget.

When you sell a property that has a top-up home loan attached to it, the proceeds from the sale will be used to repay the outstanding balance on the loan. This ensures that the lender is fully repaid for the loan amount they provided.

The process of repaying your top-up home loan upon selling your property typically involves the following steps:

• Notification to the lender: Once you have finalised the sale of your property, it is important to notify your lender promptly to initiate the repayment process.

• Settlement of proceeds: Upon settlement of the property sale, the proceeds will be held by your real estate agent or conveyancer. They will then disburse the funds to your lender, typically in the form of a bank transfer or cheque.

• Repayment of top-up loan: The lender will use the proceeds from the property sale to repay the outstanding balance on your top-up home loan. This includes the principal amount and any accrued interest.

• Closing of loan account: Once the top-up home loan is fully repaid, your lender will close the loan account and provide you with a confirmation of closure.

It is important to check with your lender if there are any prepayment charges associated with repaying your top-up home loan early. Some lenders may charge a prepayment penalty if you repay the loan in full before the end of the agreed-upon tenure.

ABHFL (Aditya Birla Housing Finance Limited) is a leading housing finance company in India, and it offers a variety of benefits for top-up home loans, including:

• Competitive interest rates: ABHFL offers competitive interest rates on top-up home loans, making us more affordable and manageable for borrowers. Lower interest rates translate to lower monthly repayments, reducing the financial burden on the borrower.

• Flexible repayment terms: ABHFL provides flexible repayment tenure options for top-up home loans, allowing borrowers to customise their repayment plan according to their financial situation and preferences. Longer tenures can reduce monthly EMIs, while shorter tenures can help repay the loan faster and minimise overall interest payments.

• Quick processing times: ABHFL is known for its efficient loan processing and disbursal mechanisms. The company strives to minimise the time between loan application and fund disbursement, allowing borrowers to access the additional financing quickly.

• Strong customer service: ABHFL has a reputation for providing excellent customer service throughout the loan process, from application to post-disbursement support. Our customer support team is readily available to address queries, provide assistance, and resolve any issues promptly.

• Wide network of branches: ABHFL has a vast network of branches across India, making it easily accessible to borrowers in various locations. This extensive reach allows borrowers to interact with the company in person, clarify doubts, and receive personalised guidance.

• Digital banking platform: ABHFL offers a convenient digital banking platform that allows borrowers to manage their loan accounts online or through a mobile app. This platform provides access to account details, statements, and the ability to make online payments, enhancing convenience and flexibility.

• Eligibility check: ABHFL provides an online eligibility check feature that allows potential borrowers to assess their preliminary eligibility for a top-up home loan based on basic information. This quick check can help borrowers understand their potential borrowing capacity and make informed decisions.

• Pre-approved loans: ABHFL offers pre-approved top-up home loans to eligible customers, which streamlines the application process and reduces paperwork. Pre-approved loans provide borrowers with a guarantee of loan eligibility and allow them to proceed with property purchases or other financing needs confidently.

• Special offers and promotions: ABHFL regularly offers special promotions and interest rate discounts on top-up home loans, making us even more attractive to borrowers. These offers can help borrowers secure financing on more favourable terms.

• Tie-ups with real estate developers: ABHFL has tie-ups with various real estate developers, providing exclusive offers and benefits to homebuyers who choose top-up home loans from ABHFL for their property purchases. These tie-ups can offer additional discounts, preferential rates, or value-added services.

The time it takes to process a balance transfer can vary depending on the lender. However, most lenders can process a balance transfer within 2-4 weeks.