Apply For Housing Loan at Lowest Interest Rate
Muthoot Fincorp Ltd. understands the aspiration of owning your dream house and thus, we offer affordable interest rates on our range of home loan products. The home loan interest rates vary between 12% to 18%. Our home loan products are designed to meet the unique customer demands of prospective home loan borrowers. Muthoot Fincorp provides home loans starting from Rs. 2,00,000 to Rs. 25,00,000 with repayment tenures between 3 to 20 years. The attractive home loan rates with minimal fees and charges results in reduced monthly instalments. Our home loan rates reflect our commitment to help .
We offer loans or credit to both mid and low income groups, and hence our home loan ratTo understand what best suits your affordability, simply use the home loan calculator on the Muthoot FinCorp website to determine the EMI amount along with total home loan interest payable on the home loan. Make Your Dream Home a Reality with Muthoot FinCorp’s Home Loan
What are the Additional Benefits of Home Loan Interest Rate at Muthoot FinCorp?
Offering one of the lowest home loan interest rates in the country, it plays a vital role from the borrower perspective as it ensures that the monthly instalments and the interest component will remain economical on the pocket. Availing a home loan from Muthoot Fincorp comes with a host of benefits.
- Competitive interest rates - Home loans with low interest components make the overall price of the home more affordable on the pocket. Whether you are a first-time prospective buyer or are looking to buy a property for investment purpose, Muthoot home loan interest rate ensures that you do not have to accumulate a huge capital prior to making the actual purchase.
- Flexible tenure - If the monthly instalment for the borrower is reasonable, the applicant can opt for a shorter repayment tenure. The benefit of gaining a competitive home loan rates in India leads to a reduced debt burden for a relatively shorter time span for the borrower. Alternatively, if you do not wish to make high instalment payments every month, a longer tenure for up to 30 years on your home loan with low interest rates will make sure that you EMIs remain low too.
- Spread your wings - The lowest home loan interest rates by Muthoot also enables those buyers who were boxed within a budget to spread their wings a little more. Therefore, if the prospective buyer had the budget to purchase within the LIG segment will now be able to consider purchasing a MIG tier property.
- Lower GST - The GST component on low-interest home loans will automatically reduce significantly. This also brings down the overall monthly instalment amount for the borrower making the home loan a very attractive investment product.
While Muthoot Fincorp offers one of the most competitive home loan interest rates in India, the actual rate will be determined by the lender once the applicant profile has been thoroughly assessed and evaluated.
How is Interest Calculated on Home Loan?
The applicable home loan interest rate comprises of two components - the base rate and markup rate. The combination of two is what you will be paying as the rate of interest on the home loan. However, to convert the home loan rates to a number in Rupees, you first need to understand the method of EMI calculation. The simplest method of calculating it is by using the home loan EMI calculator available on the Muthoot Fincorp website.
The three components factored in by Muthoot Fincorp to arrive at the amount of your monthly instalments are:
- Principal Amount: The amount of home loan that you borrow from Muthoot Fincorp is one of the primary determining factors of your EMI. Keeping the repayment tenure and interest rate fixed, the higher the home loan amount, higher will be your EMI each month.
- Loan Tenure: This is the period of time that the borrower gets to repay the home loan in easy monthly instalments. Your EMI amount is inversely proportional to the loan tenure. Longer repayment periods ensure that the EMIs are more affordable and vice versa.
- Loan Interest: The rate of interest is directly proportional to the value of your monthly EMIs. The home loan interest may be fixed or floating. In case of fixed rates of interest, the EMI amount stays the same throughout the repayment tenure whereas, for floating rates of interest, the EMI amount may change depending on any fluctuations in the base rate that is a direct result of market volatility.
The result displays under EMI shows the break-up of the principal loan amount and the interest component that has to be repaid to Muthoot Fincorp on a monthly basis.
Home Loan Miscellaneous Charges
Muthoot Fincorp offers tailored home loan solutions at competitive interest rates varying between 12% and 18%. With home loan offerings ranging between Rs. 2 lakhs to Rs. 25 lakhs, it largely caters to the needs of lower and middle income groups in India. Besides offering the lowest home loan interest rate in the country, a home loan by Muthoot Fincorp also levies additional miscellaneous fees and charges. These include:
- Loan Processing Fee: The loan processing fee hovers around 2% of the overall loan amount.
- Prepayment Charges: There is no charge on foreclosing the home loan prior to the completion of its repayment tenure.
- Delay Payment Charges: The default payment charge can be as high as 24% of the defaulted home loan amount.
- CERSAI Charges: Muthoot Fincorp does not levy any CERSAI charges.
- Cheque /ECS Dishonour Charge: Rs. 500 per dishonoured cheque or ECS transaction will be levied.
- Conversion Fee: Muthoot may levy a 0.5% conversion charge of the outstanding loan amount.
Goods and Services Tax (GST) may be levied as applicable in addition to the mentioned charges. Other add-on charges such as legal fee or property evaluation charge as applicable may be levied by Muthoot Fincorp.
How to Apply for Home Loan Online?
Apart from offering competitive home loan interest rates in India, Muthoot FinCorp has a seamless and efficient online home loan application process. Here is a step-by-step guide.
- Eligibility Check: Before you make your application to Muthoot FinCorp make sure that you have done the necessary research towards your home loan eligibility check.
- Fill in Your Application: Your application form needs to be duly filled, signed and submitted online. Make sure that you have submitted all relevant personal, professional and financial details accurately, to the best of your knowledge.
- Document Upload: Once your pre-assessment and eligibility by Muthoot FinCorp have been confirmed, you can proceed with the document upload process.
- Verification & Review: Post the document submission is complete, the relevant team at Muthoot FinCorp will review them for information verification. The decision to accept or reject your home loan application will be determined at this point.
- Loan Disbursal: Once approved, your home loan will be disbursed to your registered bank account within 1 to 3 business days.
Frequently Asked Questions
There are various factors that can impact your home loan interest rate. These include:
- Home Location: Depending on the state of residence in India, the rate of interest on your home loan may vary.
- Home Loan Amount: Your Home Loan amount has a direct impact on the interest rate.
- Loan Tenure: The loan tenure will affect the loan interest rate.
- Type of Interest: Fixed interest rates are typically higher than floating rates of interest.
Loan Type: Rates of interest may differ depending on the category of home loan you choose to avail.
Muthoot Fincorp offers a range of innovative housing loan products with interest rates varying between 12% and 18%. However, the actual or current rate of interest on the home loan will be different for individual applicants depending on a variety of factors. Other than the profile of the borrower, Muthoot Fincorp will take into consideration the applicant’s credit score and financial status, eligibility, documentation, loan amount and repayment tenure requested to arrive at a decision on the home loan interest rate.
The best way to get the lowest home loan interest rates is by carrying out a comparative analysis on a select list of home loan products offered by Muthoot Fincorp. You have the advantage of gaining in-depth knowledge on several home loan products, the features and benefits that they offer, the interest rates and repayment tenures available in general. Most importantly, you may use the online EMI calculator available to find out the probable EMIs that you may end up with on these Muthoot home loan products.
Muthoot Fincorp offers loans with one of the lowest home loan interest rates in India. The home loan interest rate scheme offered by Muthoot Fincorp is linked to the Retail Prime Lending Rate, popularly known as RPLR. Other than this, the scheme takes into account the type of loan and the amount availed. Typically, the Muthoot home loan varies between 12% and 18% which can be a fixed or floating.
You may reduce the home loan interest rate in the following ways:
- Opt for a shorter repayment tenure that cuts down on your monthly instalment amounts
- Compare interest rates online and choose a product that combines affordability with your requirements
- Consider increasing the amount of your down payment
- Select a higher EMI amount that repays your home loan interest at a faster rate
- Think of transferring your home loan balance to a more competitive service provider with a better interest rate
- If you have the money, go for a prepayment or foreclosure of your home loan
You may compare your Muthoot home loans by taking into account the following parameters:
- Type of interest rates, that is, whether you want to go with a fixed or variable rate of interest on the home loan
- Compare other fees and charges applicable on various home loan products
- Find out if you have the option to pre-close the home loan and if there are any fees or charges associated with the same
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