The Muthoot Group that was majorly into gold loan portfolio has entered into the home loan segment with the launch of ‘Muthoot Homefin’ in Kochi.The housing loan vertical forms Muthoot’s 17th division. Muthoot Homefin will extend housing finance to enable customers to fulfill their dream to build/acquire a residential space of their own.
The Group will offer competitive pricing and speedy decisions to create an edge in the housing loan segment. Muthoot Homefin will offer housing loans from Rs 1 lakh to Rs 500 lakh at interest rates from 10.20% p.a onwards for periods up to 30 years. Repayment of the amount shall be through equated monthly installments and on diminishing balance basis. Loan Against Property (LAP) will be offered in the range of Rs 10 lakh to Rs 5 crore for a period up to 15 years with interest rate of 13% onwards.
Muthoot Homefin services for the customers were launched from 15th April onwards. The Muthoot Group will offer to sanction loan applications received for the first month period up to 16.5.2015 at an attractive discount of 50% in processing fee. The group plans to commence operations in the State of Kerala and will expand operations to other parts of the country successively.
Speaking at the launch, George Alexander Muthoot, Managing Director, The Muthoot Group said, “There is an ever increasing demand for residential housing with an increase in population and growth of cities and towns. There is no place like home and with Muthoot Homefin we are delighted to extend our services bouquet to our customers to avail easy loan for their dream homes. We assure to offer housing loans at attractive interest rates with speedy sanctions and disbursals of loans.”
Loans will be extended to salaried, self Employed with and without IT return. The customers can generate leads and enquiries directly through phone/email/website and through the branches of Muthoot Finance Ltd and other group entities. The loan scheme motivates customers to influence prospective buyers of residential units and who want to construct independent houses or do improvement to existing properties. The company as of now plans to extend the loans to customers in Kerala and gradually extend the operations in Tamil Nadu, A.P and Karnataka followed by North India.