Muthoot Finance Bank Personal Loan Details
Muthoot Finance Personal Loan allows you to borrow anywhere between Rs. 50,000 and Rs. 15 lakhs. The funds can be used for any expense, planned or unplanned, and at time of a financial emergency given quick disbursal within two days. A personal loan is unsecured in nature, wherein the financial institution does not require any collateral. With this loan you can fulfil multiple monetary needs related to home renovations, big-ticket purchases, medical contingencies, education, debt consolidations, weddings, travels, etc.
At loanbaba.com, you can apply for Muthoot Finance Personal Loan online, get quick loan approval, and funds right into your bank account.
|Muthoot Finance Personal Loan Details Updated on
|Rs.50,000 to Rs. 15 lakhs
|12 months to 60 months
|14.00% to 24%
|2.5 - 3.5% on the borrowed principal
Features of Personal Loan Muthoot Finance
The personal loan scheme by Muthoot Finance has several benefits apart from online application on Loanbaba, instant approval, and fast disbursal. Below-mentioned are some of the prominent features of personal loan Muthoot Finance:
- Salaried people, proprietors, partnerships firm employees are eligible for the loan
- Discounts and special schemes are available for employees of large companies
- Loan can be taken by people from low income group
- Lowest EMI is Rs. 2,327 per lakh
- Faster processing of the loan application
- Competitive interest rates
- Only minimal documentation
- Repayment options are flexible
- You will get doorstep service
Eligibility Criteria for Muthoot Personal Loan
It is important to understand the eligibility norms put ahead by the financial institution. If you fulfil the eligibility criteria, only then your loan application can get approved. Thus, knowing the criteria for eligibility on loan is crucial. Below-mentioned are the Muthoot personal loan eligibility criteria:
- The loan is available to both salaried people and self-employed individuals. While many banks and NBFCs offer personal loans only to salaried people, Muthoot Finance extends the loan service to self-employed individuals as well.
- For salaried individuals, the minimum and maximum age to submit the loan application is 26 years and 58 years (till the loan maturity), respectively.
- For salaried people the minimum work experience must be 2 years, and net monthly income must be at least Rs. 15,000. Thus, people from low income group can also avail the funds.
- For self-employed individuals, the minimum and maximum age to drop the loan application is 24 years and 65 years, respectively.
- For self-employed people the minimum work experience must be 3 years, and net annual income must be at least Rs. 1 lakh.
NOTE: To understand the amount you are eligible to borrow, you can take help of our free-to-use eligibility calculator on the website.
Muthoot Finance Personal Loan Interest Rate
The Muthoot Finance personal loan interest rates vary between 14% and 24% per annum. Discounted rates could be applicable for applicants from large companies, government sector employees, etc. A prior good relationship with the financial institution can also secure you a better rate of interest. A good CIBIL score is mandatory to avail the loan, along with sufficient repayment capacity. To know your CIBIL score for free.
You can get the best interest rate on Muthoot personal loan depending on the loan amount sanctioned, your salary/income, tenure, other financial liabilities, etc. To determine the interest rate applicable, the financial institution may consider the following:
- Borrowed Principal Amount: The principal amount sanctioned is the loan amount you can get from Muthoot Finance. You can borrow between Rs. 50,000 and Rs. 15 lakhs. The financial institution will determine the maximum loan amount you can take, upon which you can decide to go for a lower loan amount than one you are eligible for, or borrow up to the suggested limit. Lower the borrowed amount, lower shall be the total interest payout. Thus, it is advisable to borrow only an amount that you need.
- Repayment Capacity: Before sanctioning the loan amount, Muthoot Finance will look for your repayment capacity. This is verified by going through your credit score and report, as it gives an insight into your repayment history on previous loans. The financial institution will check your debt-to-income ratio to find out if you can handle a particular EMI amount through a specified tenure or not.
- Tenure of the Loan: The tenure offered is between 12 months and 60 months. The shorter the tenure, lower will be the total interest payout, and vice-versa. It is advisable to stick to as short tenure as possible to save on the interest amount payable. However, depending on your repayment capacity, the financial institution will determine the maximum tenure you are eligible for, and then you can decide if you want to go for a shorter tenure than one suggested, or not.
- Reputation of the Employer: Muthoot Finance may maintain a list of organization based on ranking from high to low. This ranking depends on the company’s reputation, size, and existing relationship with the institution. If you are employed with a company that ranks high in the list drawn by the financial institution, then you may have a better chance at securing low interest rate or get an attractive discount on the standard rate.
- Income: Your monthly/annual income tells the financial institution about your capacity to pay the EMIs through the tenure. Those with a high range of salary can get lower rate of interest if the disposable income is sufficient. For salaried individuals, net monthly income is considered, while for self-employed people, the annual turnover is considered to decide the rate of interest.
- Relationship with Muthoot Finance: The financial institution may charge a lower rate and fee for existing customers. While it cannot be assured such a facility will be available or not, but existing customers with a good relationship with the institution certainly stand a better chance at securing the lowest rate possible, if their financial and personal profile are up to the mark of the eligibility criteria.
Muthoot Finance Personal Loan EMI Calculator
You may want to know the exact monthly instalment amount on your loan. You do not have to manually calculate results as you can take help of free-of-cost EMI calculator on our website. You can find out the equated monthly instalment over different combinations of tenure, interest rate, and loan amount.
- This tool is accessible 24 x 7, and provides accurate calculations showcasing the total interest payout over the selected tenure.
- It also present part-by-part monthly instalment with a complete amortization schedule till the end of tenure.
- It also tells you the total payout including the borrowed principal and interest charged over the entire tenure.
The tool allows you to adjust the slider on required combination of:
- Loan amount
- Interest rate
- Tenure in months or years (up to 15 years)
Now, let us look at an example of EMI calculation. Though the starting rate on the loan is 14%, let us consider a generic example for the calculation of equated monthly instalment. For instance, you take a loan of Rs. 2 lakhs on an interest of 10.75% per annum for 4 years, then the EMI amount will be as follows:
- For 1 year tenure, the monthly instalment will be Rs. 17, 653 with total interest as Rs. 11,836 and the total amount as Rs. 2, 11, 836.
- For 2 year tenure, the monthly instalment will be Rs. 9,298 with total interest as Rs. 23, 161, and total amount as Rs. 2, 23, 161.
- For 3 years tenure, the monthly instalment will be Rs. 6,524 with the total interest as Rs. 34, 867, and total amount as Rs. 2, 34,867.
- For 4 years tenure, the monthly instalment will be Rs. 5,145 with the total interest as Rs. 46,953, and total amount as Rs. 2, 46,953.
Thus, by using the online tool on Loanbaba for EMI calculation, you can decide how much the EMI will be on a borrowed amount over tenure at an applied rate of interest. The calculation will provide you a realistic idea of your financial liability after taking the loan. It will also help you plan your spending and budget to manage the EMIs on time.
Documents Required for Muthoot Finance Personal Loan
As much as the fulfilment of eligibility criteria is important, so is submission of all the required documents, without which the company may not approve the loan application. Thus, you must ensure that all the documents are in place and accurate. The below-mentioned documents must be submitted to Muthoot at the time of applying for a personal loan.
- Duly filled and signed loan application form, if applying offline. If you are applying on Loanbaba, then you have to only provide few essential details without worrying about signature at the very moment. Our customer support team will get back to you for further process.
- Recent passport-sized photographs.
- PAN card is mandatory.
- Form 16 or proof of Income Tax Returns
- Employment proof such as appointment letter, salary account statement, etc.
- Audited financials of the last two years (if you are self-employed person).
- Income proof such as bank statements / salary receipts of the last 3 to 6 months.
- Identity Proof such as Voter ID card / Driving License/ Aadhaar Card, etc.
- Address Proof such as Ration Card, Aadhar Card, Secondary school certificate (Class 10), Birth Certificate, Passport, Voter ID, Life Insurance Premium Receipt, etc.