Muthoot Finance Personal Loan

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Muthoot Finance Personal Loan

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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 18th January 2020
Loan Amount Rs.50,000 to Rs. 15 lakhs
Loan Tenure 12 months to 60 months
Interest Rate 14.00% to 24%
Processing Fee 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, click here.

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.

Frequently Asked Questions about Muthoot Finance Personal Loan

Below-mentioned are FAQs on Muthoot personal loan:

  • 1. What is the benefit of taking an unsecured personal loan?
    Loans that do not ask for security are one of the bests to apply for, as you do not risk any personal or business asset in case of a default. However, it is strictly advisable to not default on the loan and save your credit profile from taking a hit. Timely payments on a personal loan will improve your credit score and stand you a better chance at approval of new loans.
  • 2. Why credit score criteria are stringent for a collateral-free loan?
    Loans that do not require you to submit asset to the financial institution for availing fund stress on a good credit score, because your credit profile will give an accurate idea of your credit behaviour. Regular repayment on previous and existing loans signifies that you can be trusted with a new loan, and vice-versa. Since, the financial institution will not take over any asset as none are pledged to get the funds, in case of a loan default; your credit behaviour is an important factor they will consider before sanctioning the loan.
  • 3. How much should you borrow?
    The borrowing limit is between Rs. 50,000 and Rs. 15 lakhs. Since the total cost of the loan depends also on the borrowed principal, thus, you must borrow only the amount that you need, and restrict borrowing any additional amount that you can do without. The sanctioned amount will depend on your income, repayment capacity, age, credit score, etc.
  • 4. What is the best tenure for a Muthoot personal loan?
    Tenure that you can avail is between 12 months and 60 months. The best tenure will be the one you are comfortable with, and confident about paying the EMIs regularly on, so select the best shortest tenure to save big on the interest payout. But make sure the tenure selected is the one that matches your repayment capacity.
  • 5. How to get the lowest interest rate on the loan?
    To secure the lowest possible rate on the loan, you must have an excellent credit score, a good repayment capacity, and fulfil the eligibility criteria. If you have had a good relationship with Muthoot Finance or work at any of the high-ranking companies as per the list of organizations eligible for best interest rates, then you stand a better chance of securing a low rate than that offered to regular customers.
  • 6. Why is income proof mandatory to submit with the loan application form?
    Latest income proof of the last 3 to 6 months such as salary statements or salary slips, help the financial institution to understand the amount of salary credited to your bank account, every month. The lender can even ask for salary account statement of the last 3 to 6 months to know if the amount claimed in the salary slips is credited for real to the bank account or not. Since, a personal loan is unsecured in nature, your income and repayment capacity are two of the most important aspects that are considered to sanction the loan. Thus, submitting salary and income proof is mandatory with the loan application.
  • 7. How to apply for Muthoot Finance personal loan online at Loanbaba?
    To apply for Muthoot personal loan online on Loanbaba, all you have to do is fill up the loan application online on this page (scroll to the top of the page), and someone from the customer support team will get back to you instantly with further process. It takes less than 2 minutes to fill up the loan application form. You can apply from anywhere, since no branch visit is required to apply for the loan.
  • 8. What about the documentation if you apply for the loan online?
    Since you intend to apply for a personal loan online, it is recommended to go through the list of documents required to submit with the loan application form. Maintain the original copy with you, but during applying on Loanbaba, all you have to do is upload soft-copy of the asked documents.
  • 9. Is a co-applicant or guarantor necessary to avail the loan?
    There is no need for a co-applicant or a guarantor to apply for the loan. Muthoot Finance allows individual borrowers to avail funds independently without any requirement for a third-party guarantee or any person to co-sign the loan. The EMIs too need to be paid by the borrower to the financial institution, and you as a borrower are liable individually for all the charges involved on the loan.
  • 10. How much time is taken for fund disbursal?
    It may take up to 48 hours after the loan approval, to disburse the funds. The amount will be directly credited to your registered bank account. No hard cash will be handed. It is advisable to fill up the loan application form correctly and submit all the accurate and required documents during application to ensure a speedy processing and disbursal of the loan.

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