Svatantra micro housing finance
Home Loan

Let’s take a snapshot of Svatantra Micro Housing Finance:

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.

Svatantra Micro Housing Finance Corporation Home Loans are linked to SMHFC PLR, which is currently 11.00%. Interest rates on Home Loan will be at the discretion of SMHFC. Following are the applicable interest rates on SMHFC Home Loans:

• Loan for Home Purchase: 11.00% p.a.
• Beneficiary Led Construction: 11.00% p.a.
• Home Renovation Loan: 12.50%
• Plot Purchase Loan: 11.00%

Home Loans offered by SMHFC come with the following features:

Loan for Home Purchase

Beneficiary Led Construction

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.

Additional Info: Looking for 35 Lakh Home Loan? Check EMI & Apply

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.

Additional Info: Looking for 50 Lakh Home Loan? Check EMI & Apply

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

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.

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

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.

Additional Info: You can also check Best Home Loan Interest Rates

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