Get up to Rs6 lakh home loan, without documents

A housing finance company feels that documents like salary slips are not the only way to judge the credit-worthiness of a potential borrower

If you want a loan to buy an affordable home, but do not have enough documents (like salary slips), do not worry. Micro Housing Finance Corp Ltd (MHFC) is ready to provide a loan of up to Rs6 lakh for people who do not posses these documents.

“We do not believe that documents are the only way to test the trust of a client. I do not think that a salary slip will actually determine whether he or she will be able to repay the loan or not,” said Rajnish Dhall, founder, MHFC.

“A salary slip will only show how much a person earns, but there are other ways to check the earning and repayment capacity of a borrower. You can conduct independent verification and surveys to know that. For example, if I am lending to a vegetable vendor, then I observe his business. I see him every day on the street from 9 in the morning to 8 at night. You can easily make an estimate of his earning,” added Mr Dhall.

According to the latest National Sample Survey Organisation (NSSO) report, there are over 80 million poor people living in India. The slum population is also increasing and as per the Town and Country Planning Organisation’s (TCPO) estimates in 2001, over 61.8 million people in India were living in slums.

There is a huge demand for affordable housing supported by easy finance for this segment. Many banks reject loan applications of a prospective client if his company does not have a provident fund facility as the applicant might be working in a small & medium enterprise.

Besides the urban poor, a person earning Rs 8,000-Rs15,000 per month can approach this
micro-finance company for a home loan.

MHFC is targeting people like vegetable vendors, maids, taxi-drivers, etc. In fact, its first customer is a food vendor, the second is a housemaid, and the third a beautician.

“We conduct personal interviews of the customers and carry out surveys to know about the earnings of people from a particular segment. We can easily make out what a taxi-driver or maid earns. If we are lending money to a maid, we call the employer to enquire more on her earnings. We conduct ample number of enquires before lending,” added Mr Dhall.

The company has an equity capital of Rs33 crore. It has already disbursed around Rs2.50 crore to about 100 borrowers. “We have plans to sanction loans worth Rs60 crore by next year,” claimed Mr Dhall.

“We only mortgage the house being financed. To sanction a loan, we do not require a guarantor or any other security,” said Nachiket Shelgikar, co-founder, MHFC.

MHFC charges a prime lending rate (PLR) of 12% to clients and provides a loan of about 80% of the property value. As a security, the company mortgages the property being financed. While other banks require a minimum of two or three types of assurances, this company does not. MHFC claims that it has not yet faced any problems with loan repayments.

“We take two weeks to sanction loans from the date of application. We also charge 1% processing fee before disbursal, and the client has to pay a Rs300 application fee, based on which we process the application and provide a sanction,” said Mr Dhall.

The micro-finance company does not advertise. It ties up with developers who build affordable housing projects costing between Rs3 lakh to Rs6 lakh per home in urban areas. When the builder advertises his project, he also adds that he has tied up with MHFC.

At present, the company has tied up with seven affordable projects like Shubh Griha (Boisar, Maharashtra); Global City (Virar, Maharashtra); Swarajya (Ambivali, Maharashtra) and Om Shantinagar 2 (Ahmedabad, Gujarat).

“We are planning to tie up with 20 more projects which are in the pipeline. We intend to commence operations shortly in Bengaluru, Surat and Kolkata. We are also in discussions with various State governments for housing initiatives for the economically weaker section or lower income group,” said Madhusudhan Menon, founder, MHFC.
 

Contact Details of MHFC:

Micro Housing Finance Corporation Limited (“MHFC”)
#3, Victoria Building,
SA Brelvi Rd,
Off Horniman Circle,
Fort, Mumbai - 400 001
E-mail: [email protected]
Contact No : ( +91 22 2266 0130 / +91 22 2266 0427 )
 

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    COMMENTS

    krishnamohan

    10 years ago

    i want loan for 5 lakhs for startup business ( shipping business)

    tara

    10 years ago

    hello sir........ i need a loan upto 5lack plz kindly send me the details on my id.... [email protected]

    sunitha

    10 years ago

    I AM SENDING THIS IS MESSAGE 3 RD TIME PLEASE IAM IN BIG PROBLEM PLEASE TELE ME THE PROCEDURE

    ZIYAUDDIN SHAIKH

    10 years ago

    i want a home loan urgently upto six lakhs. pls provide me the detail...

    ritesh kachhavahh

    10 years ago

    i want a homeloan upto 6 lakh in kolkata my contact no. is 9339195005

    ritesh kachhavahh

    10 years ago

    i want a home loan urgently upto six lakhs. pls provide me the detail...

    Hemadri T

    10 years ago

    Hi, I am looking for loan to construct my own house. i am in need of 5 lakh. i am self employed, have documents like, bank statement, passport, cheques, ration-card, own business partnership deed. please do the needful ASAP. i will be waiting for your reply.

    muthiahpandian

    10 years ago

    i need 7 laks in my marksheet

    sunitha

    10 years ago

    i am sunitha i am working in sri sri ayurveda trust company i want urgent personal lone 3.lakh please i have no documents but i hold voter id ,pan card, caste certificate 3 month salary slip may net salary is 8000/- so please provide iam in big problem

    Sejal

    10 years ago

    Hi, I want the personal loan n i am doing the job last three years but i don't have the salary slip or bank statements i got salary in check n my salary is 12000 pm n i need the pl amount is 2 lakh for 2years if your give me then reply me on my email id with your contact detail. ASAP
    Thank you

    ram

    10 years ago

    sir i need rs 5.00.000 urgently for mad dad treatment, if possible pl. transfer the amount in my account 001101508941 icic bank

    nilesh waghela

    10 years ago

    i want a loan of 75000 rupees as a personal loan is it possoble if yes what documents are needed.

    pankaj siwach

    10 years ago

    sir,
    i need a marksheet loan upto 3 lakh.
    can igot the loan.
    my contact no. is 9812207849

    arvind r bhoite

    10 years ago

    I WANT LOAN UP TO 6 LAKH RUPEES PLEASE DO HELP

    manoj tiwari

    10 years ago

    sir, can i get 5.00 lacs inr to repay my loans? if yes how is it posible ? pl. treat it serious and urgent . thanks manoj

    REPLY

    manoj tiwar

    In Reply to manoj tiwari 10 years ago

    sir, can i get 5.00 lacs inr to repay my loans? if yes how is it posible ? pl. treat it serious and urgent . thanks manoj

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