Muthoot Finance Home Loan

4.5

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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Muthoot Finance Ltd Home Loan

  • Interest Rate

    11% - 19%

  • Loan Amount

    ₹3L - ₹40L

  • EMI Per Lakh

    ₹2,174 - ₹2,594

  • Processing Fees

    Up to 2% of the loan amount
  • Pre-Payment Charges

    Nill

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 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.

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 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.

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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