Home loans even for people from lower income group

Home loans are no doubt very hefty in nature and are generally for a long term, it is a very difficult decision even for a middle class salaried individual to opt for a home loan considering this one can easily say that home loans are next to impossible for a person from lower income group like those working as domestic staff.

One might be shocked to know but there are lenders that have started offering home loans even to the people falling in the lower income group. Lenders like Micro Housing Finance Corp. Ltd (MHFC), a Mumbai-based lender, Aadhar Housing Finance Pvt. Ltd, GRUH Finance Ltd and SEWA Bank offers home loans to such people and even assist them to borrow the loan.

Private sector lender, YES Bank is also going to launch a similar facility on pilot basis in Mumbai. The lenders have a list of projects that they are financing making it easier for the borrowers to select for a home that fits in to their budget and suits their requirements.

They also require doing paperwork like filling up the application form apart from it they also need to have identity proof, address proof, PAN card, family status and source of income. The lender will then confirm the authenticity by calling the employer.

The borrower needs to submit at least 20% of the loan amount as margin, they can avail maximum of Rs. 7 Lakh as home loan for a maximum duration of 15 years but the interest rate applicable is slightly more than that in market; it ranges between 12-14 percent, another advantage is that there is no prepayment penalty involved

A person that has a long association with his domestic staff can guide him to get a home of his own.