You are just a few clicks away from the best Home Loan offer in your city. Currently home loan interest rate starts at 8.50% p.a for all loan amounts. Share your name, mobile number & email to check your eligibility and get a list of most affordable home loan schemes.
Let’s take a snapshot of Svatantra Micro Housing Finance:
Loan amount | Up to 35 Lakhs |
Rate of interest | 11.00% |
Tenure | Up to 20 years |
Lowest EMI possible | Rs. 1,032 Per Lakh |
Processing fee | 2% +GST of the loan amount |
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:
Home Loans offered by SMHFC come with the following features:
Purpose |
|
Loan amount |
|
Tenure | Up to a maximum of 20 years |
Interest rate | 11.00% 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 |
|
Availability of CLSS | The loan can be covered under CLSS only if the property fits into the home loan eligibility criteria for CLSS. |
Purpose |
|
Loan amount |
|
Tenure | Up to a maximum of 20 years |
Interest rate | 11% 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 |
|
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. |
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:
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.
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.
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:
The Eligibility criteria for MHFC Home Loans are quite straight forward and simple:
The primary criteria are as follows:
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 |
|
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 |
Below are some reasons why one must obtain a housing loan from SMHFC:
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:
For prospective customers:
Apply for instant home loan online at Interest Rate starting from as low as 8.50% p.a. Pay EMI of just Rs. 769 per Lakh. Loan can be repaid in flexible tenure of up to 30 years. Apply now with minimal documentation. Check eligibility & get instant approval here.
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.
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.
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.
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 11.00% and 13.50% Loan for Home Purchase and 11% to 18% for Beneficiary Led Construction loan.
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.
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.
Yes, customers will have to pay a processing fee of up to 3% of the loan amount plus applicable GST.
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.
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.
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.
Yes, prepayment is allowed on MHFC loans without any additional prepayment charges.