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Muthoot Finance Loans Detail

ProductScheme for granting loans to landlords of Muthoot Finance branch offices against the rent payable to them.
EligibilityLandlords of premises let out to Muthoot Finance branches all over the country
Quantum of finance

Minimum - 1 Lakh

Maximum - 10 Lakhs

Muthoot Finance sanctions higher amounts depending on the merits of the case.

Repayment tenure60 months
Rate of interest
  • Deposit original title documents of the property with Muthoot Finance - 18%
  • Deposit the copy of the title deeds of the property - 19%
SecurityMuthoot Finance does not insist on the creation of the equitable mortgage. Depositing the original or copy of the title deeds of the property is enough.
Processing fee1% of the loan amount plus applicable GST
Repayment
  • By way of EMI spread over a maximum of 60 months
  • Muthoot Finance deducts the EMI from the rent payable to the landlord and recovers the instalment.
Documents
  • Application form completed in all respects
  • Request letter from the landlord
  • Copy of the title deeds
Turnaround timeMaximum of 2 days

Muthoot Finance Loan Against Property - Features

  • Loan Against Property available to landlords of Muthoot Finance
  • Loan available for meeting various personal and business needs
  • Individual requirements include the construction of a house, marriage of children, meet medical expenses, and so on.
  • Business requirements can be for the expansion of trade and achieve business liabilities
  • Assured repayment as the EMI is deducted from the rental amount every month
  • No need for creating the equitable mortgage
  • Attractive rates of interest
  • Low processing fees
  • Quick sanction

Muthoot Finance Loan Against Property - How to Apply

Landlords of premises let out to Muthoot Finance can take advantage of this facility of Loan Against Property to satisfy their business and individual requirements. The easiest way to apply for this loan is to approach the branch office of Muthoot Finance and apply in person.

An easy alternative is to apply for the loan through MyMoneyMantra.com. Applying for the Loan Against Property through MyMoneyMantra has its benefits.

How to apply through MyMoneyMantra?

  • Visit the official website of MyMoneyMantra and select the option, 'Loan Against Property'
  • Enter the purpose of the loan by selecting the option from the drop down menu
  • Enter the loan amount you are looking for
  • Provide details of the market value of the property
  • Provide details about the location of the property and your occupation and income.
  • Enter your name and the city where you reside
  • Provide your email address and mobile number

MyMoneyMantra.com will send you an OTP for verification purposes. Enter the OTP and access the comparison page. MyMoneyMantra offers the facility to compare different products on a single page. Select Muthoot Finance as your preferred lender and proceed to complete the application. MyMoneyMantra officials are available to guide you through the entire process.

Muthoot Finance Loan Against Property - Advantages to the Borrower

  • Get a lump sum amount against the future rent receivables
  • One of the most straightforward loans to obtain because of the quality and value of security available to the company.
  • Can use the amount for meeting individual and business requirements
  • No need to create the equitable mortgage in favour of the company
  • The borrower can choose not to deposit the original title deeds of the property with the company. Under such circumstances, the rate of interest on loan against property is 1% more at 19% per annum.
  • The borrower can deposit the copies of the title documents with the company

Muthoot Finance Loan Against Property - Advantages to the Company

  • The safest possible loan that the company can give
  • The repayment is assured because the company deducts the EMI from the rent payable to the landlord.
  • The account does not become bad because of assured repayment

Muthoot Finance Loan Against Property - Documents Required

  • Application form: The applicants should ensure to complete the form in all respects. Muthoot Finance would like to know everything about the customer. It is an integral part of KYC norms. The company does not seek the reasons for availing this loan. However, the borrower should ensure not to use the funds for speculative purposes.
  • Request letter from the landlord: The company seeks a request letter from the landlord offering the property as security for the loan. The borrower authorises the company to deduct the EMI from the monthly rent amount.
  • Copies of title deeds: The company does not stipulate the requirement of creating the equitable mortgage. However, the company needs to satisfy itself about the genuineness of the title to the property.

Muthoot Finance Loan Against Property - Eligibility Details

  • The Loan Against Property is available to landlords who have let out their property to Muthoot Finance.
  • The landlord should agree to pay the EMI by way of a deduction from the rent amount payable by Muthoot Finance.
  • The landlord should agree to deposit the original or the copies of the title deeds with Muthoot. In the case of deposit the copies of the documents, the rate of interest applicable is 19% per annum, 1% more than the standard rate.
  • The borrower must meet the income criteria to qualify for the Loan Against Property

Muthoot Finance Loan Against Property - Security

Generally, the security for a Loan Against Property is an equitable mortgage of the property. However, Muthoot Finance is different because it does not insist on the creation of the equitable mortgage. The borrower can deposit the original title deeds with the company and get the benefit of a lower rate of interest @ 18% per annum. The borrower can opt to deposit the copies of the title deeds and pay additional interest of 1%.

Muthoot Finance Loan Against Security - Calculation of EMI

Muthoot Finance calculates interest on the Loan Against Property on the reducing balance method. The ideal mode of repayment for the Loan Against Property is the EMI. The equated monthly instalment comprises an interest component and a principal repayment component. Muthoot Finance assures the repayment of the Loan Against Property by deducting the EMI from the monthly rent payable to the landlord. Therefore, the Muthoot Finance Loan Against Property is the safest of all its assets.

Muthoot Finance - Other Products

Apart from the Loan Against Property, Muthoot Finance offers various other facilities:

ProductCharacteristics In Brief
Soch BadaliyeBusiness expansion, take dealership, build a new showroom, and increase your stock - Overdraft facility available.
Aagey BadhiyeUnique Gold Loan scheme @ 1% per month
Taking India ForwardReach the unserved and underserved segment of the Indian population with an array of services.
Gold LoanLoan against gold jewellery
Gold CoinSale of gold coins of the maximum purity
Money TransferMoney transfer service, international, domestic, and Indo-Nepal transfer
Foreign ExchangeBuy and sell foreign currency, sale of travel cards, outward remittances and inward money transfers.
Travel JangoIATA accredited travel agency services
Insurance ServicesVarious insurance solutions like Money back policy, health insurance, smart kid policy, Pension plans, and so on.
ATM FacilityProvide White label ATM services
PAN CardApply for a PAN Card from any of Muthoot Finance branches
Mutual FundsInvest in shares through Muthoot Finance mutual funds
Personal LoanPersonal loans to meet your individual and business requirements
Muthoot iWillWrite your will online through Muthoot Securities, a subsidiary of Muthoot Finance.
Housing FinancePurchase, construct your house with financial assistance from Muthoot Homefin, a housing loan subsidiary.
Digital & CashlessServices like Aadhar enabled e-KYC, iMuthoot app, pre-paid Visa Card, and so on
MicrofinanceFinance business needs of the underserved population through Belstar Microfinance, a Muthoot Finance subsidiary.

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Pre-Approved ICICI Loan Against Property @8.35% p.a 

ICICI bank loan against property up to Rs. 5 Crore can be availed of online as well as offline by salaried and self-employed applicants. The LAP can be for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers. 

Muthoot Finance Loan Against Property FAQs

Is the Muthoot Finance Loan Against Property available for all customers?

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No, the Muthoot Finance LAP is a unique product that is available only to landlords who have let out their property to Muthoot Finance.

What is unique about the Muthoot Finance LAP?

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Muthoot Finance LAP is probably the only Loan Against Property facility that does not stipulate the creation of equitable mortgage of property. The borrower can deposit the original title deeds and pay interest @ 18% per annum. Alternatively, he/she can deposit the photocopies of the title deeds and pay interest @ 19% per annum.

How does the company agree to the waiver of the creation of equitable mortgage?

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The Loan Against Property is available only to landlords who have let out their property to Muthoot Finance. The company ensures that the EMI is less than the monthly rent they pay to the landlord. It enables them to deduct the EMI from the rent payable and recover the instalment. Therefore, there is no default.

Can the landlord offer any other property to Muthoot for availing the Loan Against Property?

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No, the landlord cannot offer any other property. Muthoot Finance accepts only the property that it occupies. In that way, it ensures to deduct the EMI when paying the rent every month.

What is the maximum amount of loan available in this product?

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Muthoot Finance offers a maximum amount of 10 Lakhs against the property. There are options to provide higher amounts in deserving cases.

Should the borrower submit KYC documents at the time of applying for the Loan Against Property?

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Muthoot Finance offers the facility of Loan Against Property to landlords of the premises they occupy. Therefore, they have already done KYC. Thus, the landlords need not submit KYC documents again.

Is it necessary to carry out the title search and valuation?

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Yes, Muthoot Finance carries out the title search and valuation to ensure that they adhere to the LTV ratio.

What is the maximum tenure for the Loan Against Property?

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The maximum repayment tenure for the Loan Against Property is 60 months. However, if the residual lease period is less than 60 months, Muthoot Finance stipulates the repayment tenure accordingly.

What is the purpose for which the Loan Against Property is available?

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The Loan Against Property is available for meeting individual and business emergencies. The purpose can range from catering to medical expenses, education, and marriage expenses, and so on. On the business front, this loan is available for meeting working capital requirements and for purchasing business assets.

Can the applicant apply for the loan in joint names?

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If the property is in joint names, there has to be a co-applicant. Otherwise, the applicant cannot do so in joint names.