A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • Micro Housing Finance Home Loan

    As an urban but low-income focused financing company, Micro Housing Finance Corporation (MHFC) is fashioned out of a beautiful dream- ‘home for all’. The aim is to create a balanced ecosystem of housing in India for those who do not earn as much as the ‘usual loan applicants’.

    MHF mainly concentrates on delivering financial aid to urban poor working in unorganized sectors such as housemaids, weavers, rickshaw pullers, drivers, sex-workers, security guards and micro-entrepreneurs (small-scale vendors) and so on. By offering the lowest interest rates possible regardless of the nominal income and applicant’s financial background, the Company has succeeded in bringing joy to many a family belonging to the lower rung of the economy.

    Features & Benefits

    • Loan Sum: You can avail a maximum of up to INR 10 lakhs house loan from Micro Housing Finance.
    • Loan to Value: MHFC does not grant more than 85% of the current market value of the property.
    • Loan Term: MHFC allows a long tenure up to 15 years to customers to settle the loan.
    • Rate of Interest: The Micro Housing Finance interest rate is between 12% and 13% (floating and will change as per the PLR revisions) as of now. Annual Percentage Rate (APR) range from 12.88% to 13.62%.

    Eligibility & Documentation

    • The applicant has to be a resident of India and should be of age 21 and above.
    • They should earn an annual income in compliance with MHFC’s terms and conditions regarding the same.
    • Submit copies of identity proof, residential proof and required income papers.

    How to calculate EMI:

    Go to the official website of Micro Housing Finance, click on the EMI calculator page and enter the details asked- total loan amount, loan tenure and current interest rate to get your optimum EMI options.

    Fees & Charges

    • MHFC charges a minimal Processing Fee of 2.5% on the approved loan amount if it is paid by cheque. But if you are paying by Debit Card, Credit Card or Demand Draft, then it is only 2%.
    • There shall be no penalty for advance payment.
    • If the submitted cheque bounces, a fine of INR 250 is levied.
    • In case of late payment of EMI, 2% of the due is charged.
    • If you want to retrieve your documents, MHF will levy INR 500 per document or INR 1000 for all the papers.

    FAQs on Micro Housing Finance Home Loan

    1. What is the collateral required for MHFC Housing Loan?

      The property being financed is usually the security. Once the final instalment is paid, it becomes your house in every sense.

    2. Does MHFC charge customers for handling cash or cheque?

      Yes, they charge INR 150 for handling cheque and INR 300 for handling hard cash including taxes.

    3. Where do I file a complaint?

      You can may go to the nearest branch directly or send an email to the MHFC Loan Officer or the Local Office Manager or the HR Manager. If not happy with the outcome, you can get in touch with the Managing Director.


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