Muthoot Finance, the popular gold loan firm has announced a new product called ‘Home Down Payment Loan’. This scheme is targeted towards those loan seekers who are in need of margin money in order to avail home loans.
Well, as per the norms, any home loan seeker has to pay 20 percent margin amount or self contribution in order to avail house loan of up to 80 percent. This margin money is pretty important and many people who are eligible for housing loan are getting rejected as they do not have margin money.
Eventually, Muthoot Finance has come up with this ‘Home Down Payment Loan’ that will resolve the margin money problem that the home loan seekers face, claims Avinav Chaubey, Muthoot Group AGM of Marketing.
Coming to the new product, there is a repayment period of five years and it is designed to provide the down payment of a new property or for the renovation or extension of an existing one. To avail this loan, borrowers need not provide any income documents or property proof, added the executive.
Interestingly, this ‘Home Down Payment Loan’ plan provides the borrowers the option to pay the interest as EMI only for those days that they need the amount without any extra charges. Moreover, it offers cheaper interest rates as compared to the process of taking personal loans as the interest rate is only 11 percent and the margin money ranges from Rs 1 lakh to Rs 10 lakh that can be paid for a period between 12 months to 60 months.
In addition to ‘Home Down Payment Loan’, Muthoot Finance has also announced consumer loan to provide convenient credit options to its customers who buy consumer durables. This scheme is termed Convenient Consumer Loan (CCL) and it is an EMI service that can be paid within a time period of 36 months. The CCL offers instant finance up to 100 percent of the product value without credit card or CIBIL score and there is no down payment and processing fee for this.