Explore Micro Finance Home Loan that offers a small ticket size and affordable rates for applicants with limited funds.
Last updated on: January 27, 2026
The Indian real estate market is burgeoning. However, as the Indian home-buying market continues to grow, individuals with low income might steer away due to complex and expensive home loans. In such a scenario, a micro finance home loan offers a small ticket size and affordable interest. Moreover, since it is targeted towards low-income individuals, the approval process can suit their requirements.
You can decode micro finance home loans and gauge their suitability for your housing credit requirement through their features and benefits. Discussed below is the analysis of its features, followed by its benefits.
Features of Micro Housing Finance
Benefits of Micro Housing Finance
The micro finance housing loan Equated Monthly Installments (EMIs) can be flexible and customised according to your needs. Therefore, before undertaking any loan application process, you must understand the EMI structure to ensure fiscal planning.
Visit the digital home loan EMI calculator from Bajaj Markets to project the anticipated EMI. Then enter the loan amount, rate of interest, and tenure. The tenure can be in terms of months or years. Once all details are filled in, select Calculate Now. The EMI and other repayments details will be calculated automatically.
Interest is the cost of availing loan products. However, other than interest, there are other additional charges involved with debt. Discussed below are the fees and charges associated with micro housing finance.
Different home loan providers have different criteria that an applicant has to meet. Discussed below are some key eligibility criteria for micro housing finance.
An applicant must be an Indian citizen and be at least 21 years old.
The nature and amount of income or revenue of the business should be according to the lender’s requirements.
The credit score of the applicant should showcase their creditworthiness as per the required standards.
The applicant, whether salaried or self-employed, should possess the required documentation.
A micro housing finance corporation (MHFC) housing finance requires document evaluation to ensure that an applicant can repay the debt. Document examination ensures credit risk control for banks and NBFCs. Therefore, the applicants have to submit the following documents for loan disbursement.
There are several micro housing finance companies. Choosing the option that gives you optimal credit terms might seem intimidating. In such a scenario, Bajaj Markets, an online financial marketplace curates a list of providers according to your credentials. Discussed below are the steps to choose an optimal micro home loan offer.
Visit Bajaj Markets and select the check offers section.
Input your details in the digital application form.
Specify the loan amount and preferred repayment tenure.
Submit the form for verification.
Discussed below are some common challenges that you may face while applying for credit terms.
Individuals working in the informal sector might face documentary restrictions.
Applicants with irregular income, might not satisfy the risk profile of the credit provider.
The ticket-size of this micro loan might not satisfy high-end property purchase.
Choosing the provider that gives favourable terms manually can be cumbersome.
Some of these challenges can be tackled through certain strategies. Therefore, discussed below are tips to make a micro home credit application seamless.
A marketplace can aid in curating the list of loan providers meeting your needs.
EMI calculators can help specify instalment and repayment terms to avoid default.
Documentations should be organised before form fill-up or digital application to avoid errors.
Use an eligibility check calculator to avoid loan rejections.
Reviewer
Despite these processing charges, what makes microfinance home loans so attractive to most borrowers is the fact that no additional collateral is required for the loan.
You can use your lender's easily accessible website to make a complaint, or you can visit the closest branch if you would like to speak with someone in person.
The minimum loan amount can differ from one bank or NBFC to another. However, micro housing finance can have a small ticket size of up to ₹10 Lakhs.
The income of the applicant must meet the eligibility criteria of the credit provider. The eligibility criteria regarding income often vary.
A micro housing loan can be availed for a new, under construction or a resale property. Renovation can also be financed through these loans.
Yes, a self-employed individual can apply. They might have to provide their bank statements, IT return files, fiscal statements, and other such documents as income proof.
The interest rate is determined based on loan specific metrics like the amount, tenure, etc. Moreover, the credentials of the applicant like credit score, income, etc., also determine interest.
Bajaj Markets is a financial marketplace that can help you find a curated list of banks and NBFCs that provide micro home loans and align with your requirements.
The approval timing differs from one institution to another. Moreover, the credentials of an applicant also play a key role. For instance, if you have an excellent credit score you can get a quick approval.
Yes, a prepayment is generally allowed. Moreover, there is usually no fine on prepayment of a micro housing loan.
You can track the status of the application through the portal or website through which you applied. If you made a physical submission, you can contact your customer relationship manager (CRM).