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Svatantra micro housing finance
Home Loan

Apply for Svatantra Micro Housing Finance Home Loans up to 35 Lakhs starting at 11.00% 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.

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You are just a few clicks away from the best Home Loan offer in your city. Currently home loan interest rate starts at 8.20% 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.

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Svatantra Micro Housing Finance Corporation Limited Details

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

Loan amountUp to 35 Lakhs
Rate of interest11.00% 
TenureUp to 20 years
Lowest EMI possibleRs. 1,032 Per Lakh
Processing fee2% +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 11.00%. 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%

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 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.
TenureUp to a maximum of 20 years
Interest rate11.00% p.a.
SecurityEquitable mortgage (through the deposit title deeds) on the property that is being financed.
Repayment optionsElectronic 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 CLSSThe 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.
TenureUp to a maximum of 20 years
Interest rate11% p.a.
SecurityEquitable/ registered mortgage on the plot of land along with construction thereon.
Repayment optionsElectronic 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 CLSSThe 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 - 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 ChargesAmount
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 chargesNil
Cheque/ ECS bounce charges500 per event + GST
Statement charges (for requesting hard copy)500 + GST
Late payment fees2% p.m. of the amount due
Charges for document retrieval500 for each document or 1,000 for all the documents + GST
Charges for obtaining list of document/ foreclosure letter500 + GST
Incidental charges for any recovery of overduesAs per actuals
Cheque handling charges (for overdue collections only)150 per transaction + GST
Cash handling charges300 per transaction + GST

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.

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

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

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Svatantra Micro Housing Finance - FAQs

✅ What is the purpose of Home Loans offered by SMHFC?

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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?

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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?

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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?

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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.

✅ How long does the loan take to be disbursed?

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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?

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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?

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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?

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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?

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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?

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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?

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