Svatantra Micro Housing Finance

SVATANTRA MICRO HOUSING FINANCE HOME LOAN

Apply Svatantra Micro Housing Finance  Home Loan

About Svatantra Micro Housing Finance Corporation Limited

On May 16th 2008, Svatantra Micro Housing Finance Corporation Limited (SMHFC) was created under the Companies Act of 1956. The primary objective of this finance company is to provide Home Loans and finance to the lower income sectors and the informal economic sections of the society. This includes individuals like auto-rickshaw drivers, small scale vendors, security guards, and other low-income individuals who are unable to generate as much income as is required for a regular Home Loan.

This finance corporation emerged as a result of the "home for all" program initiated by the Indian Government. This organisation addresses one of the main issues of the lower income group when it comes to availing necessary finance, which is being unable to provide proper income documents. In the year 2009, the organisation also received the regulatory clearance that is mandatory from the National Housing Bank.

Svatantra Micro Housing Finance Corporation specializes in providing Home Loans that ensure affordable EMIs to individuals who have the minimum income required as per the regulations of the organisation.

Why Apply for Svatantra Micro Housing Finance Corporation Home Loan?

Below are some reasons why one must obtain a housing loan from SMHFC:

  • Easy EMI options: The EMI is dependent upon the rate of interest and the tenure of the loan. The longer the tenure, the lower the EMI and vice versa. The rate of interest provided depends on various factors, such as the income of the individual and credit history. In some cases, the rate of interest may be lower based on the repayment capacity of the customer. These flexible factors allow you to manage your EMI easily. You can also calculate your EMI beforehand using the EMI calculator available online. This lets you plan your monthly budget a lot better.
  • Low-interest rate: With these loans, you get a floating rate of interest that is dependent upon the PLR. PLR is the Prime Lending Rate, which changes based on the market conditions. The interest rate changes accordingly. However, the EMI does not change as the loan tenor will be adjusted accordingly.
  • Great loan to value (LTV) ratio: The loan amount provided depends upon the value of the property that is purchased. One of the best advantages of these loans is that you get the best loan to value of 85%. This means that the loan amount provided is up to 85% of the value of the property at the time of application of loan.
  • Simple processing and documentation: The idea behind these loans is to provide easy finance solutions to those who are unable to avail loans from any other sources. For this reason, the processing of the loan and documentation is extremely minimal and basic.
  • No pre-payment fees: Customers have the option of closing their loan earlier than the fixed tenure. Since there are no prepayment fees, this makes the loan even more beneficial as you can avoid paying interest for the entire tenure. When you have any additional income or are able to generate the amount required closing any outstanding on the loan, you can do so without any additional charges.
  • Simple eligibility criteria: The eligibility criteria of these loans are also quite simple, making it easier for more people to avail the loan. Customers also have the option of checking if they are eligible for a particular loan using the eligibility calculator online.

Types & Features of Svatantra Micro Housing Finance Corporation Home Loans

Home Loans offered by SMHFC come with the following features:

Loan for Home Purchase

Purpose

  • To purchase a house in SMHFC approved private/ government projects in India.
  • To purchase an under-construction/ new/ existing residential property in India where SMHFC has a presence.

Loan amount

  • Minimum 1 Lakh
  • Up to a maximum of 25 Lakhs
  • The loan amount depends upon various factors like the requirement of the customer, the internal policies, and the income of the applicant.
  • A higher amount can be considered on an exception basis.

Tenure

Up to a maximum of 25 years

Interest rate

10.5% to 14% p.a.

Security

Equitable mortgage (through the deposit title deeds) on the property that is being financed.

Repayment options

Electronic Standing Instruction (NACH) for all Equated Monthly Instalments (EMIs)

Conditions

  • SMHFC will abide by the Most Important Terms and Conditions (MITC) on all loans, as stipulated by the National Housing Bank (NHB).
  • SMHFC may insist upon a registered mortgage, wherever necessary.
  • Customers can take a mortgage redemption policy from HDFC Life, as it has a tie-up with SMHFC. The final insurance amount depends on the age, loan amount, and loan tenure.

Availability of CLSS

The loan can be covered under CLSS only if the property fits into the eligibility criteria for CLSS.

Beneficiary Led Construction

Purpose

  • To construct a house on a plot of land owned by the borrower.
  • To finance the construction or extension and improvement expenses of an existing house.

Loan amount

  • Minimum 1 Lakh
  • Up to a maximum of 10 Lakhs
  • A higher amount can be considered on an exception basis.

Tenure

Up to a maximum of 20 years

Interest rate

16% to 18% p.a.

Security

Equitable/ registered mortgage on the plot of land along with construction thereon.

Repayment options

Electronic Standing Instruction (NACH) for all Equated Monthly Instalments (EMIs)

Conditions

  • SMHFC will abide by the Most Important Terms and Conditions (MITC) on all loans, as stipulated by the National Housing Bank (NHB).
  • Customers can take a mortgage redemption policy from HDFC Life, as it has a tie-up with SMHFC. The final insurance amount depends on the age, loan amount, and loan tenure.

Availability of CLSS

The loan can be covered under CLSS only if the property fits into the eligibility criteria for CLSS. CLSS will be available only for Urban and Semi-Urban areas.

Svatantra Micro Housing Finance Corporation Home Loan Interest Rates

Svatantra Micro Housing Finance Corporation Home Loans are linked to SMHFC PLR, which is currently 13%. Interest rates will be at the discretion of SMHFC. Following are the applicable interest rates on SMHFC Home Loans:

  • Loan for Home Purchase: 5% p.a. to 14% p.a.
  • Beneficiary Led Construction: 16% p.a. to 18% p.a.

Svatantra Micro Housing Finance Corporation Home Loan Eligibility

The Eligibility criteria for MHFC Home Loans are quite straight forward and simple:

The primary criteria are as follows:

  • The applicant should be at least 21 years of age
  • The income after making all the deductions should be sufficient to make EMI payments towards the loan.

Documents Required for Svatantra Micro Housing Finance Corporation Home Loan

Along with a duly filled application form, customers must provide the following documents in order to avail the loan:

  • ID Proof: PAN Card/ Driving License/ Adhaar Card/ Voter ID
  • Address Proof: Bank Passbook/ Driving License/ Voter ID/ Adhaar Card
  • Income proof: Salary slips, Form 16, computation of income, P&L statement, balance sheet, etc. (as applicable).
  • Property documents: Allotment Letter/ Agreement for Sale/ Receipt for all payments made towards the property.
  • Cheque to make payments towards the processing fees charged by MHFC

Why Apply for Svatantra Micro Housing Finance Corporation Home Loan through MyMoneyMantra?

MyMoneyMantra is one of its kind lending marketplaces in the country. We are dedicated towards helping customers make an informed financial decision. Applying for an SMHFC Loan through MyMoneyMantra offer several benefits to customers as mentioned below:

  • You get access to several financial institutions: MyMoneyMantra acts as a bridge between customers and lending institutions. We are partnered with over 100 banks, NBFCs, and other financial institutions. This gives you a one-stop solution to seek any type of financing for your immediate requirements.
  • Compare various deals and offers before purchasing: MyMoneyMantra allows you to compare the prices and deals offered by different institutions in real-time. You can also get quotes as per your profile and pick one that is most suitable for you.
  • Complete assistance for a loan application: From learning about different finance options to completing all the documentation required to apply for the loan, MyMoneyMantra offers you an array of services. Once a loan request is submitted, the necessary documents are picked up from your doorstep and verified to ensure that they are correct.
  • Gain access to a team of finance professionals: MyMoneyMantra gives you access to more than 2500 relationship managers across the country. This is of great use when you have several loan options to choose from and are unsure of what is best suited for you. They give you the right advice and find solutions that are easy and affordable.
  • Several years of experience: MyMoneyMantra has been in the industry since 1989 and has created a strong customer base through its unique services. They have developed a very good social media presence over the years and have also created several financial tools for customers to make the most of.
  • Happy customers all over the country: Today, MyMoneyMantra has over 40 Lakh customers all over the country. The testimonials provided by these customers are proof of the fact that we strive to ensure the most hassle-free consumer experience each time.
  • Faster disbursal of loans: By ensuring that the documentation is perfect for the loan and by following up on a timely basis, MyMoneyMantra ensures faster loan disbursal. They have systems that function around the clock to make sure that customers have quick access to any financial solution that they need.
  • Large gamut of finance products: The choices of finance products provided by MyMoneyMantra are endless. From personal loans, Home Loans, business loans, loans against property, credit cards to insurance, you can apply for a variety of financial products through MyMoneyMantra.

How to Apply for Svatantra Micro Housing Finance Corporation Home Loan through MyMoneyMantra?

Log on to the MyMoneyMantra website and follow these steps:

  • Go to the Loans tab and under Home Loans, choose Svatantra Micro Housing Finance Corporation Home Loan.
  • Then provide details like the purpose of the loan, loan amount required and your personal details like name and income.
  • Once this request has been submitted, the documents will be collected from your doorstep and submitted to SMHFC.

After the loan application has been submitted, MyMoneyMantra will also help you with the approval of the loan and the disbursal.

How to Calculate EMI for Svatantra Micro Housing Finance Corporation Home Loan?

It is very important to know what the EMI for a loan will be before you make an application. This helps you understand if a loan is really affordable for you or not. In addition to this, you can plan your finances better when you know how much you need to pay towards your loans each month.

There are different options available for you to calculate the EMI towards your Home Loan:

Using the Formula

There is a formula that is used to calculate the EMI towards a Home Loan, which is:

[P x R x (1+R)^N]/[(1+R)^N-1]

In this formula, P is the loan amount, R is the rate of interest on the loan and N is the tenure of the loan.

Using MyMoneyMantra EMI Calculator

Customers can access the EMI Calculator available on MyMoneyMantra as well as SMHFC in order to calculate the installments towards the loan. This is a better and more accurate option as there is no scope for human error. All you have to do is enter the loan amount, the tenure, and the rate of interest on the loan and your EMI will be provided to you instantly.

What to Check after Calculating the EMI?

Once you have calculated your EMI, the most important thing that you need to check is if it fits into your monthly budget. Deduct all the mandatory expenses from your income, including any rent, EMIs towards other loans, utility bills and your grocery bills. Only if you have enough left to make regular payments towards your loan should you apply for one.

Svatantra Micro Housing Finance Corporation Home Loan - Processing Fee & Other Charges

There are some fees and charges that you will have to pay towards your SMHFC house loan as mentioned below. These charges are:

Types of Charges Amount

Processing fees

  • Loan for Home Purchase
    • For customers eligible for CLSS: Processing fee will be recovered as part of the loan amount as per NHB guidelines.
    • For customers not eligible for CLSS: Up to 3% of the loan amount + GST.
  • Beneficiary Led Construction
    • Up to 3% of the loan amount + GST

Prepayment charges

Nil

Cheque/ ECS bounce charges

500 per event + GST

Statement charges (for requesting hard copy)

500 + GST

Late payment fees

2% p.m. of the amount due

Charges for document retrieval

500 for each document or 1,000 for all the documents + GST

Charges for obtaining list of document/ foreclosure letter

500 + GST

Incidental charges for any recovery of overdues

As per actuals

Cheque handling charges (for overdue collections only)

150 per transaction + GST

Cash handling charges

300 per transaction + GST

Svatantra Micro Housing Finance Corporation Home Loan - Customer Care

Micro Finance Housing Corporation Ltd provides various options for customers to get in touch with them as follows:

For existing customers:

  • Toll-free number: 1800-1234-427
  • Email ID: customerservices@mhfcindia.com

For prospective customers:

  • Toll-free number: 1800-1234-427
  • Email ID: contact@mhfcindia.com

FAQs - Svatantra Micro Housing Finance

What is the purpose of Home Loans offered by SMHFC?

You can make use of the Home Loans offered by SMHFC in order to purchase a new home, construct a new property, renovate/extend/improve an existing property.

Who can apply for these loans?

These loans are specially designed to cater to the economically weaker sections of the society, especially the informal section with no tax documents. The idea is to enable these economically weaker sections realize their dream of owning a home. Any individual who is 21 years of age and has an income deemed suitable for the type of loan applied for is eligible to get these SMHFC housing loans.

What is the maximum loan amount available for SMHFC Home Loans?

Customers can get loans up to 25 Lakhs under Loan for Home Purchase scheme and up to 10 Lakhs Beneficiary Led Construction loan. A higher amount of loan can also be considered on an exception basis.

Are the rates of interest fixed or floating?

The rates of interest offered on the SMHFC Home Loans are floating interest rates. These are related to the Prime Lending Rate or the PLR and fluctuate as per the market conditions. Usually, these loans vary between 10.5% and 14% Loan for Home Purchase and 16% to 18% for Beneficiary Led Construction loan.

How long does the loan take to be disbursed?

The disbursal of the loan is dependent on certain conditions that need to be fulfilled by the customer. To begin with, they must fulfill all the conditions provided in the letter of offer. In addition to this, they need to make the complete payment of the margin amount, the project must be approved and the building must be at a stage of construction deemed satisfactory by SMHFC.

Whom should I contact in order to apply for the loan?

You have the option of applying for the loan through MyMoneyMantra. Additionally, you can also contact the Relationship Officer or the Branch Manager at any SMHFC branch in order to learn more about the loans and submit the application.

Are there any processing fees that are collected towards the loan?

Yes, customers will have to pay a processing fee of up to 3% of the loan amount plus applicable GST.

What is the maximum loan repayment tenure?

You can get repayment tenure  of up to 25 years for Loan for Home Purchase and up to 20 years for Beneficiary Led Construction loan.

How can I make payments towards the EMI?

EMI payment can be made by customers by providing electronic standing instructions to SMHFC. You also have the option of making payments through cash or cheque at an SMHFC branch. Additional cash and cheque handling charges are applicable on these payments made.

Can I retrieve my documents if needed?

Customers can get a copy of the documents that have been submitted along with the application. All the original documents are only returned after the loan has been closed.

Can I make prepayments on these loans?

Yes, prepayment is allowed on MHFC loans without any additional prepayment charges.

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