Muthoot Finance Ltd Home Loan
Muthoot Finance home loans meet the diverse needs of homebuyers. Muthoot Finance home loans are designed to help you turn your dream of proudly owning a home into a reality, with flexible repayment options and attractive interest rates. Eligible candidates can apply for a domestic loan online or at any branch for quick application and approval. Muthoot Finance has a domestic loan solution for its customers, whether they need to buy a new home, construct a new house, or renovate a present one.
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Features and Benefits of Muthoot Finance Home Loan
Muthoot Finance is one of the most valuable and trusted financial service brands in India. It also has the largest gold loan portfolio among other NBFCs. Accessible and convenient, it provides services in almost every corner of India with more than 5443 branches. Choosing Muthoot Finance Ltd home loan to apply for a home loan online can be the best option because:
- Easy and fast application process
- Interest rates starting at 12% onwards
- 25 years loan tenure
- Offers 90% of the home loan of property value
You can read the features and benefits offered by Muthoot Finance Ltd. mentioned below:
- Muthoot Finance Ltd disburses the home loan amount within 48 hours after verifying all the necessary documents.
- Customers can easily access their online home loan account and check their loan status and other information.
- The NBFC also offers floating rate options and bears no hidden charges.
- It provides home loans for all the approved projects.
- ECS facility is available in the loans provided by Muthoot Finance Ltd.
- Provides doorstep services to all its customers.
Muthoot Finance Home Loan Eligibility Criteria
The Muthoot Finance Ltd Home Loan requirements are pretty straightforward and simple.
- The minimum age for applying for the loan must be 21 years.
- The maximum age at the time of loan maturity should not be more than 60 years.
- The applicant should be a resident Indian.
Here is a table representing the loan amount depending upon the property value.
| House Value | Loan Amount to Property Value |
| Till Rs. 30,00,00 | 90% of property value |
| From Rs. 30,00,001 to Rs. 50,00,000 | 80% of property value |
Muthoot Finance Home Loan Fees and Charges
In the table below you can check all the fees and charges levied on the loan amount. It involves the processing fee, prepayment charges, charges for delaying the payment, CERSAI charges, etc. You can easily understand all the charges and then apply for a Muthoot Finance Ltd Home Loan.
| Transaction on Loan | Charges and Fees |
| Processing Fee | 2% of the total loan amount |
| Charges for Prepayment | Nil (Prepayment charges are levied only on Plot loans) |
| Charges for Delaying Payment | Annual charge of 24.00% on the defaulted amount |
| CERSAI Charges | As applicable |
| Cheque / ECS Dishonour Charge | Rs. 500 per instance |
| Fees for Conversion | 0.50% of the leftover amount |
Documents Required for Muthoot Finance Home Loan
For Muthoot Finance Ltd. Home Loan, one has to submit some important documents for validation and approval purposes. They are as follows:
- Completely filled home loan application form with correct information.
- KYC documents for identity, address, signature and birth verification. These include Aadhaar card, PAN card, birth certificate, Voter ID card, etc.
- Income proof is the most prominent proof. A salaried person has to submit a 3-month salary slip, Form 16 and an updated bank statement for the last six months. A self-employed person has to show an Income Tax Return, balance sheet, and profit and loss statement.
- For NRIs, they have to submit all the above documents along with a copy of visa and passport, work permit of the country they are working in and a copy of agreement from their current employer.
Types of Muthoot Finance Home Loan
Muthoot Finance offers specially designed home loan schemes for its customers which are as follows:
Loan for Purchasing House
Resident Indians who want to buy or construct a new home can apply for this home loan scheme. Under this loan, one can sanction the loan amount of up to Rs. 50 lakh.
Loan for Refinancing of Property
This loan is designed to help people in refinancing the purchase of a new property with consideration that the property has already been purchased by them. The repayment tenure for this loan is 20 years maximum.
Composite Loan
This home loan scheme is designed specifically for purchasing a plot or construction of a home thereon within a decided time period.
Top-up Loan
Top-up loan facility is designed for people who want to repair or renovate their home or improve interiors by building or painting walls, plumbing, doing electrical work, etc.
Loan for Home Extension
Home extension loan is for customers who want to finance or extend the space of their home by constructing additional parts like a living room, kitchen, bedroom and others.
Home Loan Balance Transfer and Top Up
Under this scheme, customers can transfer their existing home loan from a different financial organisation to Muthoot Finance with or without an additional top-up. 20 years is the maximum loan repayment time and Rs. 50 lakh is the maximum loan amount provided.
Loan for the Construction of Home
Under this scheme, customers can buy a new or under construction home from the developers.
Home Loans For NRIs
All the eligible NRIs who want to buy residential property under construction or want to construct a property on their land or extension can apply for this loan. The maximum time period for repaying the loan amount is 15 years only.
How Does the EMI Calculation Work for Muthoot Finance Home Loan?
The manual formula for calculating EMIs is:
EMI = (P × R × (1+r)^n)/((1+r)^n-1)
Where,
- n means the tenure of the loan
- P stands for the principal loan amount
- R stands for interest rate
But doing the home loan EMI calculations manually can take a lot of time, increase the chances of error and become a struggle. Therefore, we introduce you to the advanced Pluto Money Home Loan Calculator for instant EMI calculations.
You just have to enter your loan amount, tenure and interest rate. The rest of the calculation will be done in the backend and the result will be displayed on your screen in seconds.
FAQs
Rs. 50 lakh is the maximum home loan amount that can be disbursed in the account of an NRI.
You can easily repay your loan in the form of EMIs. You can use the Pluto Money calculator and know your EMIs beforehand.
Part-prepayment and full repayment ahead of the loan tenure is available.
Yes, for Indian residents there are tax benefits available. However, tax deduction has a maximum limit of Rs. 2 lakh for interest payment and Rs. 1.5 lakh for the principal loan amount.
Muthoot Finance links its home loan interest rate to its retail prime lending rate. The RPLR is connected to market rates. Also, they are subjected to market risk.
Muthoot Finance is not a bank, therefore, it does not have any MCLR or RLLR concept.
The loan tenure, credit history, loan amount and occupation of the borrower and market risk can affect the Muthoot Finance Home Loan interest rate.
Muthoot Finance provides both floating and fixed interest rates to its customers. The floating interest rate is lower compared to the fixed one. Further, Muthoot Finance also provides an interest rate which is a combination of both fixed-rate and floating rates.
The only demerit is that floating interest rates are affected by market conditions. So, even if you got your ongoing home loan at a lower floating rate, if due to market fluctuation it increases, your interest amount also heightens, inflating your EMI amount.
The EMI increases with an increase in the home loan interest rates. However, Muthoot Finance always tries to maintain the constant EMI while extending the loan tenure.
It depends on the income of the borrower. If the borrower has enough income, higher EMI is a better option. However, a long tenure can increase the overall payment throughout the tenure.