Svatantra Housing Finance Home Loan

Apply for Svatantra Micro Housing Finance Home Loans up to 35 Lakhs starting at 11%-16.5% p.a. Svatantra MHFC offers affordable housing loans to low income group (LIG) customers with minimal formalities and paper work. The lender offers tailored home loans for EWS and LIG customers and charges minimum interest rate & fees with maximum transparency & convenience. You can instantly check eligibility for home loans online.

Apply for Svatantra Housing Finance Home Loan @ 11%-16.5% Interest Rates

Details
Interest Rates
Features
How to Calculate EMI
Documents Required
Eligibility
Fee & Other Charges
Customer Care

Svatantra Micro Housing Finance Corporation Limited Details

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

Loan amount	Up to 35 Lakhs
Rate of interest	11%-16.5%
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 Loan Interest Rates

Svatantra Micro Housing Finance Corporation Home Loans are linked to SMHFC PLR, which is currently 11%-16.5%. 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%-16.5% p.a
Beneficiary Led Construction: 11.00% p.a.
Home Renovation Loan: 12.50%
Plot Purchase Loan: 11.00%

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 35 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 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	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 home loan 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	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	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.

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.

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

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

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.

Svatantra Micro Housing Finance Corporation Home Loan - Fee & 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

Svatantra Housing Finance Home Loan FAQs

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.

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.