Owning a home is a dream for most of the people and this aspiration always leads to find most suitable partner in realizing this dream. Muthoot Housing Finance Company being one of the largest NBFCs is a provider of variety of home loans to various society segments and helps them in making their dream come true. Muthoot Housing Finance is a subsidiary lender of the Muthoot Fincorp Ltd. and a registered member of National Housing Bank (NHB) that offers home loans at competitive interest rates to its customers.
Muthoot Finance Home Loan Interest Rates 2019
|Interest Rate||12.5% pa onwards|
|Processing Charges||Upto 2% of loan amt.|
|Loan Tenure||Upto 25 years|
|Loan Amount||Rs. 3 Crore Lac|
|Cheque Bounce Charges||Rs.500 per instance|
|Cheque / Instrument Swap Charges||Rs.500 per instance|
|Prepayment or Foreclosure Charges||No Charges|
The MHFC housing loans are intended to cater the financial needs of generally middle and lower class of the Indian customer base. The home loan from Muthoot is offered from 3 Lakhs upto 15 Lakhs with maximum repayment tenure of 15 years and 12.50% onwards rate of interest and upto 80% of the property value. The policies for Muthoot Housing Finance home loan have been crafted keeping in mind the customers hailing from unorganized sector on Indian economy. Home loan available at MHFC gives enormous reprieve especially for the people from weaker section of the society from the unorganized sector, who are normally deprived from any monetary assistance when it comes to loan products. Most of such applicants fail to put up the required margin money or fulfill the income criteria set up banks for eligibility in home loan schemes. All such customer can apply for a Muthoot Finance Home Loan.
The different variants of Muthoot Housing Finance Company limited home loans are:
- Muthoot Home Purchase Loan– This is the common housing loan scheme offered for purchasing a house/flat.
- MHFC Home Improvement Loan– A home loans offered by MHFC for undertaking renovations/repair and/or up gradation to your home.
- Muthoot Home Construction Loan– Muthoot offers construction Home loan is offered to construct a new home on a plot already owned by the applicant. It is also termed as composite loan.
- MHFC Home Extension Loan– If in case the applicant requires to extended or expand an existing home, such as addition of an extra room, etc., then home extension loan can be availed.
- Muthoot Home Conversion Loan– Home conversion loan is available for those borrowers who have got their existing property financed with a Home Loan and now wants to buy another home wherein they require some additional funds. In home conversion loan, the existing home loan is transferred against the new property, including the surplus amount taken; hence the need for pre-payment for the previous loan is eliminated.
- Muthoot Land Purchase Loan– In case the borrower wants to purchase of a land/plot for home construction, he/she, may apply for land purchase loan.
- Muthoot Bridge Loan– Muthoot Housing Finance home loan can be taken as a Bridge Loan by those applicants who want to sell their existing property and purchase another. The bridge loan assists in financing the new home, till the time the existing property is not sold.
- Muthoot Balance Transfer Loan– MHFC home loan transfer gives the option of balance transfer for those applicants who are availing home loan from any other lender and now wants to shift to Muthoot Housing Finance home loans
- Muthoot Refinance Loan– Refinance loan helps to pay off the accumulated debt one has incurred from private lending source such as friends and relatives for the purchase of their present home.
- Muthoot Stamp Duty Loan– The loan is offered to specifically pay the stamp duty amount which needs to be paid while purchasing a property.
MHFC NRI Home Loan – MHFC NRI Home Loan is customized as per the requirements of Non-resident Indians customer (NRIs) who wish to build or purchase a home in India. NRI home loans are offered by eligible financial institutions as per the guidelines of the Reserve Bank of India.
Muthoot Home Down Payment Loan / Grah Mitra
The Grah Mitra or Home Down Payment loan is a variant of Muthoot Housing Finance Company home loan tailored with unique proportion of personal loan and home loan features. The processing of the grah Mitra home Loan is as same the personal loan. There is minimal documentation required to apply for the loan. However the loan is sanctioned for specific expenses that one need to make towards purchasing a house. This loan covers the down payment aspect towards purchase of a plot.
Purpose of Muthoot Housing Finance Home Loan
Purpose of expenses varies from one to another and depends of the borrower as well. Muthoot Home down Payment Loan is deliberated to meet the below financial aids:
- Down payment
- Cost of Renovation
- Alteration or modification after buying
- Purchase of household items such as furniture
Features of Muthoot Housing Finance Company Home Loan
- Swift processing is one of the key features of Muthoot Housing Finance home loan. Most of the lending institutions take up considerable amount of time to derive and calculate various factors such as market value of property, any other encumbrance, ability to repay and the borrower’s source of income. All this can lead up to a time line beyond which the applicant may lose the property to another buyer. Muthoot Housing Finance home loan address this very concern of all the prospective borrowers.
- Quick sanction of the loan – Home loan from MHFC have simple and hassle free processing which ensures that no time is lost in the procurement of the property in MHFC home loan. Muthoot has robust processing system in place to avoid any such kind of loss.
- Minimum documentation: While the targeted customer base for Muthoot Housing Finance home loan hails from unorganized sectors, MHFC housing loans is an easygoing loan solution when it comes to paperwork.
- Maximum Loan Amount with minimum interest applicable. The maximum quantum of Muthoot Housing Finance home loan is 1 crore, the applicable interest rates are comparatively low without the stipulation of settling it at scrounging interest rates.
- No processing fee is charged for the MHFC home loan. Also no extra or hidden charge is applicable. All the charges are very clearly mentioned in the MHFC home loan agreement form.
- No pre-payment charges or penalty fee is applicable, in case the borrowers want to settle the loan prior conclusion of the loan tenure.
Additional Features of Muthoot Housing Finance Home Loan
- Rate of Interest: MHFC limited home loan interest rates currently is 13.50% onwards. Special preferential rates may be made available for govt. Promoted- EWS/LIG scheme. The interest mentioned above is subject to change as per sole discretion of MHFCL. Interest charged to the customer will be specifically mentioned in the MHFC home loan sanction letter and the loan agreement. Interest on the home loan is charged at a floating rate recalculated each month. The interest rate may be revised periodically.
- Calculation of interest: The Interest on the loan amount will be computed as per prevailing rate of interest based on the daily reducing balance method. For any change in interest rates of MHFC home loan, the Intimation of change shall be duly communicated to the borrower through different means.
- In the event of a failure to pay the EMI or any irregularity in the Muthoot Housing Finance Company Limited home loan, Muthoot Fincorp reserves the right to charge higher interest rates as it may deem fit. The standard rate of penal interest is 2% over and above the standard home loan interest rate.
- MHFC home loan Repayment: The loan has to be paid in the form of Equated Monthly Installments (EMIs) over the loan tenure. The Muthoot Housing Finance home loan EMI commences from the date as specified in the loan sanction letter / loan arrangement. The liability to MHFC home loan ends only after the loan outstanding becomes zero, on payment of amount outstanding, if applicable. EMI and any Pre-EMI is computed on monthly balance on the applicable rate of interest. The interest rate is a variable component and directly is linked to RPLR. In case of any changes in the interest rate in Muthoot Finance Housing Loan, the EMI will be kept unchanged, with a consequential change in the left over tenure. However, the EMI will change if remaining tenure exceeds the maximum acceptable tenure as per prevailing policy of Muthoot Housing. The Pre-EMI interest will be calculated on the amount disbursed at the applicable interest rate.
- Loan Tenure: The Maximum tenure in MHFC home loan is 15 years or till the borrower reaches 70 years of age. This period should fall within the age by which the loan should be fully repaid, whichever is earlier.
- Pre closure Charges: There is no pre-payment/pre-closure charge on MHFC home loans no matter what the tenure for which the loan account has existed or the source of the funds.
Other Features of Muthoot Housing Finance Company Home Loan
- Primary Security – The acceptable security in MHFC home loans is the Equitable or Registered mortgage or extension of the mortgage of said land and building against which loan has been sanctioned is accepted as primary security.
- Collateral – For cases where it’s not possible to mortgage the property being financed, Muthoot Fincorp, at its sole discretion may accept alternate forms of collateral as per its criteria.
Utilization of the loan:
- The Muthoot Housing Finance home loan amount has to be utilized only as per the purpose which the borrower has detailed in the application form and as per the manner agreed. The construction of the house or flat or any modification/extension in the existing property as proposed by the applicant has to be firmly according to the approved plan by the Local Planning Authorities or the development authorities.
Insurance of Property in MHFC Home Loans
- The property should be comprehensively insured as per the market value including protection against any natural calamities such as fire, Earthquake ¸ flood etc. the premium towards the insurance shall be borne by the borrower. Muthoot Housing has the provision of providing protection for the life cover of the applicants against the loan amount. The premium applicable is paid in a single installment which covers the loan principal amount. The premium on applicant’s request could be clubbed to the loan principal amount as an added funding. The premium quoted towards the cover lies solely with the partner insurance company after it solely conducts its process.
- Muthoot Fincorp has the right to inspect the said property at all reasonable times, by an officer of the lender or by a qualified auditor/ technical expert as per the discretion of the lender
- Muthoot Fincorp home loan offers customer a disbursement period of up to 24 months as part disbursement period. Thereafter, the MHFC home loans should be fully disbursed. Any part-disbursement thereafter shall be considered at the sole discretion of Muthoot Housing.
Fees & Charges
- Application fees – 2% of the loan applied
- Administrative Fees –5000 (Non-Refundable)
- Loan processing Fees – 2% of the loan sanctioned
- Cheque/ECS/NACH Bounce Charges – Rs 500
- Cheque/ECS/NACH/ Swapping Charges (per set) – Rs 500
- Legal & Recovery Charges – Actuals
- Late Payment Charges – 2% per month of the overdue amount
- Duplicate No Dues Certificate – Rs 100
- Duplicate interest certificate – Rs 100
- Photo copy of property documents – Rs 500
- Duplicate Statement of Account – Rs 250
- Duplicate Annual Account Statement, Provisional Certificate – Rs100
Service tax and other taxes, GST, etc. is applicable as per the prevailing rates over and above these charges.
The rates, fees and charges etc. as stated herein above for Muthoot finance housing loan are subject to changes/revision from time to time as per sole discretion of MHFL
Customer Services for MHFC home loans
- Walk-in at Branch office: Customer may visit any of the nearest Muthoot Fincorp branch office at the below mentioned timings. The Operations officers in the branch may be contacted for any customer related queries.
- Contact Centre: 24X7 helpline is available for all the concerns & queries by calling to the TollFree number.
- Customer service mail id: the customer can issue a complaint through an email sent to the Muthoot’s registered customer service id.
Time Norms: Customers can place a written request with the nearest branch office and the documents will be processed within the below stated timelines:
- Loan Account Statement – 7 days
- Photocopy of the title documents – 21 days
- Return of Original documents on closure /transfer of the loan – 21 days
Muthoot Home Loan Eligibility
Muthoot Housing Finance Company limited home loan is available to customers who are
- An Indian resident or NRI
- Above 21 years of age at the commencement of the loan
- Below 70years when the loan matures
- Either Salaried or Self-employed and
- Worthy of credit facility
Muthoot Home Loan Documents Required:
Below mentioned is the list of papers / documents required while applying for MHFC housing loan
- Completed loan application along with photograph
- Identification proof and residence proof
- Business address proof if borrower is self employed
- Statement of Bank Account for previous 6 months
- Assets & Liabilities Statements in bank-approved format.
- Brief write up of any securities for other outstanding loans
- Documentation for signature identification
For NRI/PIO Borrowers:
- Loan application filled out with requisite photographs
- Passport copy including page that contains Visa information
- Copy of valid resident/work permit.
- Employment contract copy (attested translation to English, if necessary)
- Current salary slip/certificate in original/copy or other proof of income in case of self-employed /Professionals.
- Copy of ID card issued by overseas employers and overseas address proof.
- If applicant is employed with the merchant navy, a Continuous Discharge Certificate copy is required.
- Short write up regarding last 10 years’ employment profile.
- Short write up about overseas institution/company where employed.
- Information about net profit / base sales (approx.) etc.
- Overseas bank account statement for the previous 6 months reflecting savings, credit of salary, etc.
- Power of Attorney (if applicable) which has been stamped and attested/notarised by the relevant Indian Consulate/Embassy.
For Guarantor (wherever applicable):
- Statement of Assets & Liabilities
- Proof of identification and address along with recent photographs
- For self-employed – business address proof
- Documentation of signature identification
Key additional documents required for salaried applicants:
- Original salary certificate for previous month.
- IT Dept. certified documents as per bank’s requirements
For self- employed / businessmen/ professionals
- Acknowledged I.T. Returns
- Computation of income
- Copies of advance tax payment challans
All certificates as requested by the bank ranging from non-encumbrance, NOC, title deed, sale agreement, etc. also need to be submitted either as copies or the originals.
How to apply for Muthoot Housing Finance home loan Online
Applicants may apply for Muthoot Home Loan online by visiting Paisabazaar.com. All you need to do is provide some key information in order to view and compare the various loan options provided by leading home loan providers including Muthoot Housing Finance. Once you have finalised your choice, you can apply for a Muthoot Housing Finance home loan.
Muthoot Finance Important Terms & Conditions for Home Loan:
- The home loans sanctioned shall be disbursed only once when the home loan eligibility is met & terms and conditions as mentioned in the agreement form have been duly complied
- All relevant security documents need to provide by the borrower(s) when processing the loan.
- In case of any revision of MHFC home loans interest rate, customer is duly informed via email, letter, or SMS.
- A valid mortgage needs to be created in favour of MHFC as per the applicable State laws. The property needs to be completely unencumbered and marketable to the bank’s satisfaction.
- If mortgage creation is delayed for a valid reason, suitable security such as a third party guarantee, needs to be made for the interim.
- The home loan would be disbursed in stages where a loan for construction is desired or purchase is through payment in installments.
- Muthoot Housing Finance Company may disburse the home loan as a lump sum or in the form of periodic installments based on various factors including stage of construction.