Choosing the right home loan provider is an important financial decision that affects long-term affordability and financial stability. Muthoot Housing Finance, which is one of the leading non-banking financial institutions in India, has created a brand for itself by providing easy financing, quicker approval of loans, and flexible lending terms and conditions. As the banks are getting more and more strict with their criteria, the homebuyers are looking at NBFCs besides banks to find loan options that are more suitable for their varied income structures. This is especially true for self-employed professionals and people with non-standard or variable sources of income who may find the general banking criteria quite stringent.

Muthoot Finance Home Loan Overview

Muthoot Housing Finance Company offers a range of home lending products designed for borrowers who value faster processing and flexible eligibility compared with traditional banks. Applicants can choose from multiple loan types, including Home Purchase Loans, Home Construction Loans, Home Extension or Improvement Loans, Plot + Construction Loans, and Balance Transfer Loans for switching an existing home loan from another lender.

An important feature is its foreclosure policy. If your home loan is sanctioned at a floating (variable) interest rate, you can foreclose it without paying any additional charges. For fixed-rate loans, foreclosure from your own funds does not attract a penalty. However, if you choose to refinance or transfer the loan to another lender, a foreclosure fee of 3% to 5% of the outstanding amount applies.

Muthoot Finance Home Loan Interest Rates (Latest)

A residence is among the largest monetary commitments that a person makes in their lifetime. The company provides housing finance for regular salary earners as well as self-employed individuals to buy a new house, make alterations, or build one. Those who are looking to borrow money for purposes other than housing can apply for a Loan Against Property (LAP), which has also been offered at a higher rate of interest.

Eligibility Criteria

Muthoot Housing Finance Company has set straightforward eligibility norms to make home loans accessible to a wide range of Indian borrowers.

Age Requirements

Applicants must be at least 21 years old at the time of application, and the loan must be fully repaid by the time the applicant reaches 65 years of age.

Employment and Income Type

Both salaried individuals and self-employed applicants (including business owners and professionals) are eligible to apply. The company accepts income from employment, business profits, or professional practice, provided it can be documented.

Minimum Income Requirement

There is no fixed minimum income slab publicly stated. However, eligibility is based on the applicant’s earning capacity and repayment ability, assessed through income documents and bank statements.

Eligibility Calculator

The Muthoot Housing Finance Company has set up an Eligibility Calculator free of charge. With this tool, potential borrowers can get an idea of the home loan amount they can be eligible for before applying.

How to use the calculator

Simply enter three details:

• Monthly income
• Applicable interest rate (%)
• Loan tenure (in years)

By relying on these details, the calculator readily provides the eligible loan amount, and it is also a great help in understanding how much one can pay for the loan.

Example (as per your input)

• Monthly Income: ₹30,000
• Interest Rate: 20%
• Loan Tenure: 20 years
• Estimated Eligible Loan Amount: ₹8,82,963

This instrument is great for the purpose of budget planning, realistic expectation setting, and borrowing less than required as a result. It also supports playing around with different tenures and interest rates, hence paving the way for informed home loan decisions even before a loan officer is approached.

6. Documents Required

As per regulatory KYC guidelines, applicants must submit valid documents for Proof of Residence, Proof of Identity, and Income Verification. The required documents are listed below.

1. Proof of Residence

Submit an attested photocopy of any one of the following:

• Passport
• Driving Licence
• Bank Account Statement
• Voter ID Card
• Current Telephone / Electricity / Gas / Water Bill
• Property Tax Bill

2. Proof of Identity

Submit an attested photocopy of any one of the following:

• Passport
• Driving Licence
• Aadhaar Card (UIDAI)
• Letter confirming identity issued by a commercial bank
• Employee ID Card from a Central / State Government undertaking
• Voter ID Card
• PAN Card

Read More: Home Loan Prepayment Calculator India – What Is It and Why It Matters

3. Income Documents: Salaried Individuals

• Salary slips for the last 3 months or a salary certificate from the employer (if salary slips are not available)
• Bank statement for the last 12 months
• ITR (Income Tax Return) for the last 2 years, if available

4. Income Documents – Business Individuals

• Proof of business ownership (e.g., license, shop rent agreement, registration documents)
• Income records such as purchase bills, sales bills, or sales registers
• Bank statement for the last 12 months
• ITR for the last 2 years, if available

Muthoot Finance Home Loan Charges

Here is the most recent Muthoot Housing Finance Company list of fee charges for home loans. These charges occur at different points in the loan’s life cycle—application, disbursal, servicing, and closure.

1. Application & Processing Charges

• Application fee: ₹5,000 (non-refundable)
• Disbursement charge:
  • Home Loan (HL): 2% of the sanctioned amount
  • Loan Against Property (LAP): 3% of the sanctioned amount
    (Application fee adjusted against this)

2. Payment & Operational Charges

• Cheque / ECS / NACH bounce: ₹500 per instance
• Cheque / ECS / NACH swap (per set): ₹500
• Collection charges: ₹250

3. Legal, Documentation & Miscellaneous

• Legal and recovery charges: Actuals
• CERSAI registration: As per CERSAI rates
• Duplicate No-Dues / Interest Certificate: ₹100 each
• Duplicate statement of account: ₹250
• Duplicate annual statement / provisional certificate: ₹100
• List of documents (LOD): ₹500
• Photocopy of property documents: ₹500
• Document retrieval: ₹1,000
• Subsequent/technical charges: ₹500
• Foreclosure statement: ₹500

4. Late Payment Charges

• 2% per month on the overdue amount

5. Part-Prepayment & Foreclosure Charges

• Floating / Variable rate: No foreclosure charges
• Fixed rate – Home Loan:
  • From own funds: No charge
  • From another lender: 5% within 12 months, 3% after 12 months
• Fixed rate – LAP:
  • 5% within 12 months, 3% after 12 months

How to Apply for a Muthoot Finance Home Loan

Muthoot Housing Finance Company’s loan application process is straightforward. A variety of modes of application are accessible according to customers’ preferences.

One can apply using any of the following ways:

• Call customer care: 1800 102 1616 is the toll-free number where you can speak to a customer care representative.
• Missed call service: By giving a missed call to 8501912345, you will be contacted by a representative who will help you through the process.
• Visit a branch: For face-to-face support and also for the submission of your documents, you may visit the nearest Muthoot Housing Finance branch.
• Apply online: Simply visit the official website, click the “Apply Now” option, enter your basic details, and a customer care executive will contact you to guide you through the application form-filling process.

Conclusion

Muthoot Finance Home Loan is a product on the market specifically targeting borrowers who prefer fast processing, flexible eligibility, and personalised loan solutions over the strict requirements set by banks. It is a perfect solution for self-employed professionals, small business owners, and salaried individuals with unstable income streams who might otherwise find it difficult to get loans from traditional lenders. The variety of loan products offered, the transparent foreclosure policy, and the effective digital tools such as EMI and eligibility calculators make it a strong competitor in the NBFC sector.

DISCLAIMER: The information given in this blog is for educational purposes only. Any content of this blog is not investment advice.