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What is an EMI?
Equated monthly installments are used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full.
How is EMI calculated?

EMI Formula: l x r [(1+r)n /(1+r)n-1 ] x 1/12
l = loan amount
r = rate of interest
n = term of the loan

What are the types of loan that Mahindra Home Finance offers?

Following loan products are offered.

  • 1. Construction of dwelling units
  • 2. Purchase of Dwelling Units
  • 3. Improvement/ Renovation of dwelling Units
  • 4. Extension of existing Dwelling Units
What is the interest rates offered for Home Loan ?

Following Interest rates are offered:-

What is fixed rate of interest?

Fixed rate of interest means the rate of interest remains unchanged for the entire duration of the loan. This means you do not have to pay more even if interest rates rise.

What is floating rate of interest?

The rate of interest fluctuates based on the market lending rate. This means you stand the risk of paying more than you budgeted for in case the lending rate goes up.

What are the tax benefits on home loan?

An individual is entitled to claim both the interest and principal components of home loan repayments for tax benefits.

However, the ceiling under tax benefits is capped at INR 150,000 towards the total interest payable on the home loan (under Section 24 of Income Tax Act, 1961) and INR 100,000 for principal paid.

Loan Approval Related


What type of houses are financed?

Independent houses and flats / Apartments of a permanent nature having valid title with building approvals from civic authorities & also House properties which may be under construction or completed and ready to occupy.

How shall we determine the loan amount?

. The eligibility depends on the need of the applicant subject to his / her repayment capacity and cost of house – the amount will be decided based on the factors listed below.

  • a. Loan Amount requested.
  • b. An amount restricted to 75% of cost of the house.
  • c. Eligibility calculated as per repayment capacity – Repayment installment not to exceed 40% of net income
How will you determine the eligibility for Home loan? Who can apply for the home loan?


MRHFL will consider the applicant / co-applicant’s income, age, employment stability, regularity and consistency of income, savings, family background, assets and liabilities, besides other factors likely to affect the loan repayment to determine the loan eligibility.

Who Can Apply-

One or more income earning members of a family can singly or jointly apply for the loan One co-applicant who should be a blood relation/ spouse is a must The applicant / co-applicant should be more than 18 years old on the date of application and should not be more than 65 years at the end of the loan tenure For Salaried applicants the retirement age or 60 years whichever is earlier would be the limit Joint income of the family members who become co-applicants to the loan will be considered subject to the age and other criteria as decided by MRHFL All co-owners of the house property being financed need to be either applicant or co-applicants to the loan.

How much is the processing fee. What are other costs?

A one time non-refundable fee towards processing of the loan application is payable after the loan is sanctioned.

Fee / charges Rate Payable
Processing Fee 2.5 % of loan sanctioned. Inclusive of service tax payable to Government Along with the acceptance of the Offer / Sanction letter The fee is non – refundable
Documentation Charges** 2.5 % of loan sanctioned. Inclusive of service tax payable to Government Along with the acceptance of the offer / sanction letter the fee is non – refundable
Prepayment Charges Nil We do not levy any charge prepayment of loans
Cheque dishonour/ return Rs.500/- per cheque return Along with payment of the amount of cheque dishonoured
Penal charges on late payment 24% pa of the overdue amount Along with payment of the overdue amount

** The documentation charge may be paid by the applicant upfront. If not the additional amount payable may be borrowed from MRHFL and paid before disbursement (or may be deducted from the 1st disbursement).

What is the security required for loan?

The security required for loan would be through an equitable or registered mortgage creation. The type of mortgage to be created will depend on the documents of title being submitted and the size of the loan. After a preliminary examination of the papers likely to be submitted by an applicant, Our legal officers will be able to tell you the kind of security that would be requested for.

What documents are required for home loan?

Duly Filled Application Form
Latest Passport Size Photos
Age Proof
KYC Documents
Income Proof
Property Related Document.

How much time will it take to process the loan?

Our extensive network of branches at over 150+ locations, speedy and simple documentation process and the capability of our executives to take quick, smart decisions make sure that the process of obtaining a loan is a quick and smooth one.

Do I require a guarantor?

While Guarantor is not mandatory, we will insist for Guarantor on case-to-case basis.

Can I make joint applications?


What are the loan repayment options available?

Loan Amortization / repayment Options are available as follows

a. Monthly, Quarterly, Half yearly installments comprising of Interest and Principal Components.

b. Structured installments to pay interest monthly and lump sum principal repayments monthly, quarterly or half yearly.

Installment Options Salaried and Self Employed customers Monthly
Agriculture class customers Half yearly or Quarterly depending on the Harvest seasons
What are the interest rate options?

Fixed and Variable options are available subject to conditions.

Interest Rate options Fixed For all customers other than Salaried Semi Urban class customers The rates will remain fixed for the entire period / Tenure of the loan with revision every 3 years depending on upward volatile rate movements and will be applicable as per the prevalent rate on the date of 1st disbursement
Variable - Salaried Semi Urban and Urban class customers The rates will fluctuate as per the money market conditions
How do I repay the loan?

Based on your convenience and eligibility loan can be repaid in monthly, quarterly or half yearly equated installments by way of EMI/ EQI/ EHI comprising of principal and interest.

Repayment of the loan can be made by cash / cheque / demand draft at any of MRHFLs offices. MRHFL also accepts post dated cheques for repayment. Repayment can also be made at Collection Centers approved by MRHFL.

Can I prepay the loan ahead of schedule?

The loan can be paid ahead of schedule and MRHFL will not levy early redemption charges

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