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Motilal Oswal Home Finance offers competitive home loan interest rates for 2025, with options for both floating rate and fixed rate schemes. The floating rate, often linked to the repo rate or MCLR (Marginal Cost of Funds based Lending Rate), starts from 8.75% p.a. and can go up to 10.5% p.a., depending on factors like loan amount, tenure, and borrower's profile. Fixed rate options provide stability with rates ranging from 9.5% to 11% p.a., ensuring predictable annual percentage rate (APR) calculations. These rates are subject to market conditions and RBI guidelines, making repo rate linked loans responsive to economic changes.
Processing fees are typically 0.5% to 1% of the loan amount, with a minimum of ₹5,000 and a maximum cap of ₹50,000, inclusive of GST. Prepayment charges apply differently: for floating rate loans, there are no charges on partial or full prepayment if done from own sources. However, fixed rate loans may incur 2% to 3% prepayment charges on the outstanding amount if prepaid within the first three years. Foreclosure charges are nil for floating rates but can be up to 4% for fixed rates if closed early. Always check the latest charges on the official Motilal Oswal Home Finance website for updates.
The Motilal Oswal Home Finance Home Loan EMI Calculator is a user-friendly tool to estimate monthly repayments. To use it, input the principal loan amount (e.g., ₹50 lakhs), the loan tenure in months or years (up to 30 years), and the applicable interest rate (such as 8.75% p.a. for floating rate). The calculator computes the Equated Monthly Installment (EMI) using the formula: EMI = [P x R x (1+R)^N] / [(1+R)^N – 1], where P is principal, R is monthly interest rate, and N is number of installments. It also provides breakdowns of total interest payable and the impact of floating rate fluctuations on APR. This helps borrowers plan finances by simulating different scenarios, like adjusting tenure to lower EMI.
Eligibility for Motilal Oswal Home Finance home loans requires applicants to be between 21 and 65 years old at loan maturity. Income eligibility starts at a minimum monthly salary of ₹25,000 for salaried individuals and ₹3 lakhs annual income for self-employed. A strong CIBIL score of at least 700 is crucial, as it influences approval and interest rates. Employment type matters—stable salaried jobs or businesses with at least two years of operation are preferred. The loan-to-value ratio (LTV) is up to 80% for properties valued under ₹30 lakhs and 75% for higher values, ensuring the loan amount doesn't exceed a safe percentage of the property's worth. Documentation like income proofs, KYC, and property papers is mandatory.
Home loans from Motilal Oswal Home Finance offer tenures from 5 to 30 years, allowing flexibility based on age and repayment capacity. Shorter tenures reduce total interest but increase EMI, while longer ones ease monthly burdens. Repayment options include standard EMI, step-up EMI for growing incomes, or balloon payments for partial lump sums. Prepayment flexibility is high for floating rate loans with no penalties, encouraging early repayment to save on interest. Foreclosure rules permit full loan closure after 6 months without charges for floating rates, but fixed rate loans may have restrictions and fees up to 4% if foreclosed before 36 months. Always review terms for MCLR or repo rate linked adjustments that could affect repayment.
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