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Building your dream home from the ground up is exciting yet challenging. One of the most crucial aspects of this journey is securing the right financing. Muthoot Finance Home Construction Loan is designed to provide the financial support needed to make your dream a reality. Whether you plan to build a cosy home for your family or a grand architectural masterpiece, this loan covers all your construction needs.
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A home construction loan is a specialised loan that differs from a typical home loan. It funds the building process, including materials, labour, and other construction-related expenses. Unlike regular home loans, the disbursement of funds occurs in stages, aligning with the construction progress. This ensures that you have the necessary funds at each project phase. This article will delve into the features, benefits, and application process of the Muthoot Finance Home Construction Loan to help you make an informed decision.
Here’s how it works and what it offers:
| Feature | Details |
| Application | Online, instant for various renovation needs |
| Loan Amount | Rs. 2,00,000 to Rs. 25,00,000 |
| Repayment Tenure | Flexible, ranging from 3 to 20 years |
| Subsidy Benefits | Available under Pradhan Mantri Awas Yojana up to Rs. 2.67 lakhs |
Muthoot Finance Construction Loan Interest Rates
Muthoot Finance offers home loans with interest rates starting from 11% annually. The rates vary based on the applicant’s employment status.
| Applicant Type | Interest Rate (p.a.) |
| Salaried | 11% – 18% |
| Self Employed Professional (ITR Income) | 11% – 18% |
| Self Employed Non-Professional (Assessed Income) | 12.50% – 19% |
Muthoot Finance Construction Loan Fees And Charges
Here is a comprehensive overview of the fees and charges associated with the Muthoot Finance Construction Loan:
| Fee/Charge | Details |
| Loan Processing Fee | 2% of the total loan amount. |
| Prepayment Charges | NIL |
| Delay Payment Charges | Up to 24% |
| Cheque/ECS Dishonour Charge | Rs. 500 per instance |
Muthoot Finance Construction Loan Eligibility Criteria For Salaried and Self-Employed
Qualifying for a Muthoot Finance Construction Loan is simple and straightforward. Here are the key eligibility criteria:
- Age Requirements: Applicants must be at least 21 years old at the time of application and not older than 65 years at the time of loan maturity.
- Employment Status: Both salaried and self-employed individuals are eligible to apply.
- Bank Account: Applicants must have an active bank account.
- Location: The applicant must reside in a city with a Muthoot Blue branch.
- Co-ownership: If the property is co-owned, the co-owner must be involved in financing.
Muthoot Finance Construction Loan Documents Required For Salaried and Self-Employed
Applying for a Muthoot Finance Construction Loan involves providing several essential documents. Here’s a detailed list of the required documentation for both salaried and self-employed applicants:
Address Proof (Any one of the following)
- Passport
- Ration card
- Voter ID
- Driving Licence
- Registered Rental Agreement
- Recent Electricity or Landline bill (issued within the last three months)
Identity Proof (Any one of the following)
- Driving Licence
- Voter ID card
- Passport
- Ration card
- Photo Credit Card
- PAN Card
- Employee ID card for Government servants
For Self-Employed Individuals
- Bank statements showing transactions for the previous three months
For Salaried Individuals
- Three months’ salary slips with Income Tax Return (ITR) or Form 16
Proof of Ownership
- Documentation proving ownership of the land intended for construction
Features Of Muthoot Finance Construction Loans
Muthoot Finance offers a range of features for their construction loans, designed to make building your dream home smooth and hassle-free. Here are some key highlights:
Quick Approvals & Simple Processes
- The application process for a self-construction loan is straightforward and easy to understand.
- Approvals and disbursements of your loan are quick, require minimal documentation, and offer flexible repayment schedules.
- Once the funds are disbursed to your account, you can start the construction process immediately.
Differential Loan Amounts & Interest Rates
- Loan amounts range from Rs. 2,00,000 to Rs. 25,00,000, with tenures ranging from 3 to 20 years.
- Both fixed and variable interest rate options are available.
- Loans are available for constructing a home on a plot of land.
Tax Benefits of Home Loans
- Up to Rs. 2,00,000 towards the interest on a home loan can be deducted from your gross income according to Section 24(b) of the Income Tax Act 1961.
- The principal deductible is up to Rs. 1,50,000 under Section 80C.
- These tax benefits allow you to save on tax while managing your loan repayment effectively.
