In today’s burgeoning real estate market, housing loans have become one of the easiest ways to purchase a home. Microfinance home loans is one such popular option. Microfinance home loans provide financing to those in the lower-income bracket of India. For many Indian residents, it may well be the only means to afford a home. Micro finance home loans have arisen out of this need, where many people require home loans at low interest rates and with various other benefits. There are several features of micro finance home loans which make them most sought after. Read on to learn what these are.
Micro finance home loans can be availed for maximum amounts ranging upto Rs. 10 lakh. This makes it easy for people, especially those in the lower income groups, to buy a house comfortably through easy accessibility to loans.
Up to 85% of the current market value of the property can be availed in micro finance home loans with the utmost ease.
Borrowers have the flexibility to repay their micro home finance loans within 15 years of the loan being availed. This provides customers with the comfort of repaying their loans at ease over a period of time.
The rate of interest on micro finance loans usually ranges between 12% to 13%, which is far lower than the rate of interest available on most other loans available to customers in the market.
Applying for a microfinance home loan is relatively simple. Eligibility for availing a microfinance home loan is open to all citizens of India who are aged above 21 years and earn income which falls within the lender’s compliance guidelines. Potential borrowers are only required to submit copies of their income, and proof of identity and residence in order to avail the loan.
The micro finance home loan can be repaid over a flexible tenure in the form of Equated Monthly Installments (EMIs). To calculate this EMI amount, customers can easily use the online EMI calculator and input details regarding the amount they wish to borrow and the loan tenure that works best for them. Once these details are entered, the EMI amount can be easily calculated.
While availing a microfinance home loan allows customers to purchase property at affordable rates, there are certain charges involved at the time of initiation of the home loan. At the time of availing the loan, a processing fee of up to 3% is charged if the payment is made via cheque. If the cheque bounces, a fine of Rs. 3000 is further levied. In case of payment of EMI, if there is a delay, 2% of the due amount is additionally charged from the borrower. If the borrower wishes to withdraw their documents from the lender, they are required to pay Rs. 500 in case of one document and Rs. 1000 if all the documents are to be withdrawn.
Despite these processing charges, what makes microfinance home loans so attractive to most borrowers is the fact that no additional collateral is required for availing the loan. The property that is being financed via the loan is the only collateral listed by the lending agency. The property is passed on over completely to the borrower once the final installment on the loan has been paid.
During payment of EMIs, customers will be charged for making payments through cash or cheque. If they wish to make payments through cash, they need to pay Rs. 300 including taxes. However, if they wish to pay by issuing cheques, they need pay only Rs. 150 on the transaction. Hence, it is easiest and cheapest to make all your EMI payments via the digital mode only.
You can file a complaint on the easily accessible website of your lender or, if you’d like to have an in-person chat, you can visit the nearest branch.
Microfinance home loans can come in particularly handy, in a number of situations. However, if you’re looking for a larger loan amount, you can do so with the Bajaj Finserv Home Loan on Finserv MARKETS. With the help of the Bajaj Finserv Home Loan, you can avail of loan amounts of up to Rs. 3.5 crore at attractive interest rates and a range of benefits. The application process is smooth and seamless, with a minimum amount of documentation required. On Finserv MARKETS, you are offered flexible repayment tenures, which can go up to Rs. 3 crore. Your dream home could be yours in the shortest possible time with the home loan available on Finserv MARKETS.