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Muthoot Finance Ltd Home Loan

Muthoot Finance Ltd
4.5

Muthoot Finance Ltd. has always strived to uphold and maintain a working environment based on transparency and conscience. The company has always prioritized trust as its biggest principle.

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Check Muthoot Finance Ltd Home Loan Eligibility

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Urban Money

Home Loan Banks

Interest Rate

Processing Fee

Loan Amount/Tenure

Muthoot Finance Ltd Home Loan Interest Rate

Up to 12.5%

Up to 2%

-

Tenure(1 - 25 Years)

Details

Features and Benefits of Muthoot Finance Ltd. 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 12.5% 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 Ltd. 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

Types of Muthoot Finance Ltd. 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.

Muthoot Finance Ltd 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

Muthoot Finance Ltd. Home Loan Interest Rates

The Muthoot Finance Ltd Home Loan interest rate depends on several factors, such as tenure, processing fee, loan amount, etc. Here is a quick overview of all. 

Interest Rate 12.5% onwards
Loan Tenure Up to 25 years
Loan-to-Value Ratio Up to 90% of the property value

Factors Affecting Muthoot Finance Ltd. Home Loan Interest Rates

  • Association with the Bank: It is important for you to have a good relationship with your chosen bank or financial institution. A personal relationship with financial organizations will help you crack a better home loan deal at a better interest rate.
  • Level of Income: High income is perfect to get an amazing home loan deal. Further, good income is also perceived as an ability to repay the Muthoot home loan, making the borrower trustworthy in the eyes of the lender.
  • Don't be a Defaulter: It is important for you to have a good credit score. If you become a defaulter on the list you won't get any home loan. The credit score must be more than 700.

Documents Required for Muthoot Finance Ltd. 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.

How Does the EMI Calculation Work for Muthoot Finance Ltd. 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 Urban 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.

How Muthoot Finance Ltd Compares With Other Lenders?

You can compare Muthoot Finance Ltd with all the below-mentioned lenders on the basis of interest rate, maximum loan amount, maximum tenure and processing fees and charges. 

Lenders Rate of Interest Max. Loan Amount Max. Tenure Processing Charges & Fees
Muthoot Finance Ltd 12.5% - 18.0% Upto Rs. 50 lakh Maximum of 25 years Minimum 1.5% of the Total Loan Amount + Applicable Taxes
Aditya Birla Finance Limited 9% to 12.5% Over Rs. 75 lakh 30 years 1% + Goods And ServiceTax
Citibank Home Loan 6.50% - 7.25% Rs. 10 Crores 25 years Up to Rs. 5,000
Bank of Baroda Home Loan 6.70% - 8.60% Rs. 10 Crores 30 years 0.50% (minimum Rs. 8,500 & maximum Rs. 25,000)
ICICI Bank Home Loan 6.75% - 7.55% 90% of property value 30 years 0.50% to 2% or Rs. 1,500 (for For Mumbai, Delhi & Bangalore it is Rs. 2,000), whichever is more + GST
Kotak Mahindra Home Loan 6.65% - 7.30% Rs. 5 Crores 30 years 2% of the loan amount + Goods And Service Tax
HDFC Ltd Home Loan 6.75% - 7.65% 90% of property value 30 years 1.50% or Rs. 4,500 (whichever is more) + applicable taxes

Muthoot Finance Ltd Home Loan Customer Care Number

You can contact the Muthoot Finance Ltd Home Loan customer care on the following numbers.

  • North, East and West India Toll-Free No.: 1800 313 1212
  • Email: forexaccountsdlh@muthootgroup.com
  • South India Call Centre No.: 99469 01212
  • Email: forex@muthootgroup.com

Other Muthoot Finance Ltd home loan customer care numbers you can try are +91-22-3911-0900 and +91-22-3911-0999. Both are toll-free numbers.

FAQs

From refinancing to reducing your interest, we have the answers right here.

In Muthoot Finance how much loan amount can be given to NRIs?

Rs. 50 lakh is the maximum home loan amount that can be disbursed in the account of an NRI.

How can I repay my loan to Muthoot Finance?

You can easily repay your loan in the form of EMIs. You can use the Urban Money calculator and know your EMIs beforehand.

Is part or full prepayment available ahead of the tenure?

Part-prepayment and full repayment ahead of the loan tenure is available.

Are there any tax benefits against the housing loan?

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.

How does Muthoot Finance arrive at the Home Loan interest rate?

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.

MCLR or RLLR, which concept is followed by Muthoot Finance?

Muthoot Finance is not a bank, therefore, it does not have any MCLR or RLLR concept.

Name the factors that affect the Muthoot Finance Home Loan interest rate?

The loan tenure, credit history, loan amount and occupation of the borrower and market risk can affect the Muthoot Finance Home Loan interest rate.

What types of interest rates are offered by Muthoot Finance?

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.

What are the demerits of a floating interest rate of a home loan?

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.

Will EMI increase if the interest rates move upward?

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.

What is a better choice: an increased EMI or a long 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.

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