Gold loan company Muthoot Finance has launched a product 'Home Down Payment Loan' to finance margin money needed to avail of home loans.
As per the norms, a home loan borrower has to pay 20 per cent margin money or his own contribution to avail of housing loan up to 80 per cent.
Many people do get a housing loan because they do not have margin money. So, Muthoot Finance have come out with such a product which takes care of the margin money issue of home loan seeker, Muthoot Group AGM marketing Avinav Chaubey said.
With repayment period of five years, this product has been designed for the down payment of a new property or renovation or extension of an existing property.
Loan under this plan is provided instantly with no property or income documents required even before the property is selected, he said, adding the prominent feature of this loan plan is that gives its borrowers an option to pay their interest as EMI only for the days they need the amount without additional charges.
It provides cheaper interest rates as compared to taking personal loans or from local pawn shops.
The loan, available at 11 per cent interest rate, would range from Rs 1 lakh to 10 lakh for a period of 12 to 60 months.
Besides, the company has also launched consumer loan to offer convenient credit options to customers for buying consumer durable.
Convenient Consumer Loan (CCL), which is an EMI based loan service and can be cleared within 36 months, he said, adding convenient consumer loan also does not include any 'Negative Area' concept, wherein the loan seekers application often gets rejected.
The target group for this scheme include salaried persons, traders, professionally employed persons, agriculturists etc.
The CCL provides instant finance upto 100 per cent of the product value without the need of CIBIL Score or Credit Card. There are no processing charges involved and an exclusive zero down payment facility is offered to all its customers.