Micro Housing Finance Home Loan
Micro Housing Finance Home Loans, now offered by Svatantra Micro Housing Finance Corporation (formerly MHFC), help urban low-income earners buy a home with minimal documentation. Loans go up to Rs.25 lakh, cover up to 85% of the property value, and run for a tenure of up to 20 years. A door-to-door process replaces the need for a branch visit.
Features & Benefits
- Loan Sum: You can avail a maximum of up to Rs.25 lakh 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 20 years to customers to settle the loan.
- Rate of Interest: The Micro Housing Finance interest rate now ranges from 11% to 16.5% p.a., linked to Svatantra MHFC's Prime Lending Rate (PLR) of 14.75%, and is revised periodically.
Note: The interest rates are effective from 1 April 2026.
- PMAY Interest Subsidy: Eligible first-time buyers taking a Micro Housing Finance Home Loan can also claim an interest subsidy of up to Rs.1.80 lakh under the Pradhan Mantri Awas Yojana (Urban) scheme, subject to eligibility conditions.
- Doorstep Service: Micro Housing Finance Home Loan formalities, from application to disbursement, are completed through a door-to-door process, so applicants do not need to visit a branch.
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.
- Coverage: Micro Housing Finance Home Loans are currently available to applicants in Maharashtra, Madhya Pradesh, Chhattisgarh, Gujarat, Rajasthan, West Bengal, Tamil Nadu, Odisha, Andhra Pradesh, Telangana and Karnataka.
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
- The Micro Housing Finance Home Loan Processing Fee currently ranges from 2% to 3% of the loan amount, plus applicable GST.
- There shall be no penalty for advance payment.
- If the submitted cheque bounces, a fine of Rs.500 plus GST is levied per event.
- In case of late payment of EMI, 2% per month on the amount due is charged.
- If you want to retrieve your documents, a charge of Rs.500 per document, or Rs.1,000 for the complete set, plus applicable GST, applies.
FAQs on Micro Housing Finance Home Loan
1.What is a Micro Housing Finance home loan?
A Micro Housing Finance home loan is a home loan designed for urban low-income earners with limited income documentation, currently offered by Svatantra Micro Housing Finance Corporation (formerly MHFC). It is aimed at borrowers such as domestic workers, drivers and small vendors who want to buy a home. The loan is secured against the property being financed.
2. Who is eligible for a Micro Housing Finance home loan?
Any Indian resident aged 21 or above with a stable source of income can apply for a Micro Housing Finance home loan. Eligibility also depends on factors such as repayment capacity and past credit record. Applicants must submit identity, residential and income-related documents as part of the application.
3.How much can I borrow under a Micro Housing Finance home loan, and for how long?
The loan amount and repayment tenure for a Micro Housing Finance home loan depend on the property value and the applicant's repayment capacity, within the lender's current loan-to-value and tenure limits. These limits are listed in the Features & Benefits section above. Applicants should confirm the current limits with the lender before applying.
4. What documents are required for a Micro Housing Finance home loan?
Applicants generally need to submit identity proof, residential proof and income-related documents to apply for a Micro Housing Finance home loan. The exact documents required vary by applicant profile and are confirmed during the eligibility check. This flexible process is designed for borrowers who may lack conventional income proof.
5.How do I calculate the EMI for a Micro Housing Finance home loan?
You can estimate the EMI for a Micro Housing Finance home loan using the lender's online EMI calculator by entering the loan amount, tenure and applicable interest rate. Changing any of these inputs changes the resulting EMI. Always use the lender's current published rate rather than an old estimate.
6.What fees and charges apply to a Micro Housing Finance home loan?
A Micro Housing Finance home loan carries a processing fee, along with charges that may apply for events such as a cheque bounce, late EMI payment or document retrieval. The current fee structure is listed in the Fees & Charges section above. These charges are revised periodically, so applicants should check the latest schedule before signing the loan agreement.
7.What is the collateral required for a Micro Housing Finance home loan?
The property being financed usually serves as the collateral for a Micro Housing Finance home loan. Once the final instalment is repaid, full ownership of the property passes to the borrower.
8.How do I file a complaint about a Micro Housing Finance home loan?
A complaint about a Micro Housing Finance home loan can be raised through the lender's toll-free number, email, website, mobile app or nearest branch. If the issue is not resolved, it can be escalated to the lender's Grievance Redressal Officer and, if necessary, further to the National Housing Bank. Current contact details for each escalation level are available on the lender's official website.
Annie Jangam is a financial writer with a unique background in biotechnology and eight years of genomics research experience, culminating in 6 international publications. She combines her analytical and communication skills to simplify complex financial concepts, delivering precise and creatively engaging content in the fintech industry. She covers various financial products such as banking, insurance, credit cards, tax, commodities, and more. Outside of the financial realm, she dabbles in poetry. Her extracurricular passions include organizing events like One Billion Rising and Human Rights Day. She is committed to the equality of all people, a principle rooted in her Christian faith. Annie strives to embody the values of faith, hope, and love in both her work and her life.
Disclaimer
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2026 BankBazaar.com.