Housing Loan Down Payment/Margin money Product by Muthoot Finance

Muthoot Finance has launched a new scheme to finance mar­gin mon­ey need­ed to avail of home loans. As per norms, a home loan bor­row­er has to con­tribute 20 per cent mar­gin mon­ey (equi­ty) to avail a hous­ing loan for up to 80 per cent of the prop­er­ty’s value.

Many prospec­tive home buy­ers fail to get a hous­ing loan because they do not have mar­gin mon­ey that runs into sev­er­al lakhs.

The new prod­uct will cater to home loan seek­ers, who have dif­fi­cul­ty in pay­ing the mar­gin mon­ey upfront. The prod­uct, designed for the down pay­ment of a new prop­er­ty or ren­o­va­tion or exten­sion of an exist­ing prop­er­ty, will have a repay­ment peri­od of five years. No prop­er­ty or income doc­u­ments are required. The rates under the new scheme are cheap­er as com­pared to per­son­al loans, Muthoot Finance said. Under the plan, cus­tomers can avail a loan of Rs. 1 lakh to Rs. 10 lakh at an inter­est rate of 11 per cent inter­est rate for a peri­od of 12 to 60 months.

Muthoot has also launched a new con­sumer loan scheme to offer con­ve­nient cred­it options to cus­tomers for buy­ing con­sumer durables. The EMI-based loan ser­vice can be cleared with­in 36 months, the com­pa­ny said. The scheme does not include any ‘Neg­a­tive Area’ con­cept — a ground used by many lenders to reject loan applications.

Muthoot will pro­vide instant finance, up to 100 per cent of the prod­uct val­ue, with­out the need of CIBIL score or cred­it card. There are no pro­cess­ing charges and an exclu­sive zero down pay­ment facil­i­ty is offered to all cus­tomers, the com­pa­ny said.

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