Muthoot Finance Home Loans: Interest Rates, Eligibility Criteria & Schemes in 2026

Muthoot Finance Home Loan: Key Highlights

With flexible eligibility and repayment tenures, Muthoot Finance home loans are a preferred home loan option in 2026. The features of the Muthoot Housing Finance loans are as follows:

Is Muthoot Finance Safe for a Home Loan?

Founded in 1887, Muthoot Finance is one of India’s leading financial services groups, serving millions of customers across the country. Its housing finance business operates through Muthoot Homefin, regulated by the Reserve Bank of India.

Muthoot Finance home loans are a preferred option in India for their high credit ratings, digital loan processes, flexible eligibility criteria, and extensive network, catering to both salaried and self-employed applicants, including borrowers with informal income documents.

Muthoot Finance Home Loan Interest Rates 2026

Muthoot Finance home loan interest rate ranges from 11% p.a. to 19% p.a., depending on the applicant’s income profile, credit score, loan amount, property type, and tenure. The Housing Finance company follows a risk-based loan policy, meaning the final home loan interest rate is likely to vary from one borrower to another. The latest Muthoot Fincorp home loan interest rates are as follows:

Note: These are updated rates as of June, 2026. Actual rates vary based on the borrower’s risk profile and prevailing lending policies.

Muthoot Finance Floating vs Fixed Rate Home Loans

Muthoot Finance offers both floating and fixed-rate home loan options for borrowers. While floating rates change with market conditions, fixed rates provide stable EMIs but at initially higher interest rates.

How Much Home Loan Can I Get on My Salary?

The amount of Muthoot Finance home loan you can get on your salary depends on your income, existing EMIs, credit score, and loan repayment capacity. One of the main factors the HFC considers when determining the home loan amount is the FOIR, or Fixed Obligations-to-Income Ratio. This measures how much of your monthly income is allocated to paying existing EMIs and other obligations.

Muthoot Finance advises an FOIR rate of 40%-50% for comfortable EMI repayment. The HFC uses one of the following methods to evaluate the right home loan amount:

• Income Multiplier Method: Under this method, the loan amount is calculated as a multiple of your net monthly salary. Home loans of 50-65 times your monthly income are generally recommended.
• FOIR Method: Under the FOIR method, the maximum EMI you can afford is assessed after accounting for your existing obligations. Based on this EMI, the loan amount is calculated using the applicable interest rate and tenure.

The table below shows an estimate of the home loan amount you might be eligible for based on your monthly salary:

Note: These numbers are indicative and based on the income multiplier method. Actual loan eligibility varies depending on several factors.

Muthoot Finance Home Loan EMI Calculator & Examples

Home loan EMIs are the fixed amounts debited every month towards repaying your loan. It consists of both the principal amount and the interest charged by the lender.

The Muthoot Finance home loan EMI depends on factors like the loan amount, interest rate, and repayment tenure. NoBroker’s Muthoot FinCorp housing loan EMI Calculator can help you estimate your monthly instalments and plan your finances before applying for a loan.

Muthoot Finance Home Loan EMI Formula

The EMI for a home loan is calculated using the following formula:

EMI = P × R × (1 + R)^N / [(1 + R)^N – 1]

Where:

P = Loan amount

R = Monthly interest rate

N = Loan tenure in months

EMI Reference Table (at 11% p.a.)

The table below shows the approximate monthly EMI for different loan amounts and repayment tenures at an interest rate of 11% per annum to help you better understand Muthoot Finance home loan EMIs.

Note: These figures are indicative and rounded to the nearest rupee. Actual EMIs vary.

EMI Calculation Example

Suppose you take a Muthoot Finance home loan of ₹50 lakh at an interest rate of 11% p.a. for a tenure of 20 years, then your EMIs can look like this:

Factors Affecting Your Home Loan EMI

Many factors play an important role in determining your monthly loan instalments. These include:

• Loan amount: Higher loan amounts result in higher EMIs.
• Interest rate: Even a small 0.05% increase in the interest rate can increase your EMI and total interest cost.
• Repayment tenure: Longer tenures reduce EMIs but increase the interest paid.
• Prepayments: Making part-prepayments during the loan tenure can reduce your outstanding principal and future interest burden.
• Interest rate type: Changes in floating interest rates are likely to affect your EMI or loan tenure during the repayment period.

Muthoot Finance Home Loan Eligibility Criteria

Muthoot Finance has flexible eligibility criteria and requires minimal documents. This makes the HFC’s home loans accessible to a large range of borrowers in India. The Muthoot Finance home loan eligibility criteria are as follows:

Eligibility Criteria for Salaried Applicants:

 Eligibility Criteria for Self-Employed Applicants

Muthoot Finance Home Loan Schemes 2026

Muthoot Finance, through its housing finance arm, Muthoot Homefin, offers specialised home loan schemes for a range of applicant types. The related home loan schemes are as follows: 

Bank Rejected Your Home Loan? Why Muthoot Finance May Approve It

Banks often reject home loan applications due to strict eligibility criteria, insufficient income documentation, low credit scores, and informal or non-traditional income sources. Muthoot Finance, however, is likely to approve those home loans for the following reasons:

• Flexible income assessment: Instead of conforming to strict traditional income proof requirements, Muthoot Finance considers alternative income proofs for eligible applicants who cannot provide standard salary documents.
• Support for self-employed borrowers: The HFC specially caters to business owners, freelancers, professionals, and other self-employed applicants.
• Acceptance of informal income sources: Applicants here are evaluated using traditional income proofs, cash-based income, or non-traditional income sources.
• More flexible credit requirements: A lower CIBIL score does not automatically result in rejection if other profile criteria are strong.
• Specialised loan schemes: The HFC has specialised loan schemes tailored to different borrower segments and financing requirements.
• Wider eligibility criteria: Flexible age, income, and employment requirements increase the chances of loan approval for many applicants.

Documents Required for Muthoot Finance Home Loan

The application for Muthoot housing loans requires applicants to submit a duly filled and signed application form along with the following documents:

KYC Documents:

• Aadhaar card
• PAN card
• Passport
• Voter ID card
• Driving licence
• Birth certificate
• Utility bills
• Registered rental agreement
• Property tax receipts

For Salaried Applicants:

• Last 3 months’ salary slips
• Form 16 or ITR for the last 2 years
• Last 6 months’ bank account statements showing salary credits
• Employment or appointment letter
• Latest salary revision letter

For Self-Employed Applicants:

• Certificate of Incorporation, Partnership deed, GST registration, or Business registration Certificate
• Income Tax Returns for the last 2 years
• Audited Balance Sheet and Profit & Loss Account for the last 2 years
• Last 6-12 months’ business bank account statements
• Business address proof

For NRI Applicants:

• Valid passport
• Visa and work permit
• Overseas employment contract or employment certificate
• Overseas identity card
• Last 12 months’ NRE or NRO bank account statements
• Foreign address proof
• Power of Attorney, where applicable

Property Documents:

• Sale deed or title deed
• Allotment letter or builder-buyer agreement
• Receipt of payments made to the builder or seller
• No Objection Certificate
• Encumbrance Certificate
• Latest property tax receipts
• Approved building plan and layout plan
• Occupancy certificate
• Completion certificate.

Muthoot Finance Home Loan: Fees & Charges

Muthoot Fincorp home loans incur certain charges for loan processing, documentation, repayment, and servicing. These charges vary based on the loan scheme and borrower profile, and are as follows: 

Note: The above charges are indicative and updated as of June 2026, subject to change at Muthoot Finance’s discretion.

Balance Transfer to Muthoot Finance Home Loan

If you have an existing home loan with another lender, transferring it to Muthoot Housing Finance can help you reduce your total interest and EMIs. Based on your loan repayment history, you might also be eligible for top-up home loans.

How Much Can You Save with a Balance Transfer?

Note: The information used here is only for illustrative purposes. Actual savings depend on the applicable interest rate, outstanding loan amount, remaining tenure, processing fees, and other charges.

How to Apply for Muthoot Finance Home Loans?

You can apply for a Muthoot Finance home loan either online through the lender’s website or by visiting your nearest branch. The step-by-step loan application process is as follows: 

• Step 1: Check whether you’re eligible: Before applying for a Muthoot Finance home loan, make sure that you meet the eligibility criteria. You can also use NoBroker’s home loan eligibility calculator to accurately estimate your home loan amount.
• Step 2: Collect all documents: Prepare and keep all necessary documents ready, including your identity and address proof documents, PAN and Aadhaar Card, income documents, bank statements, property-related documents, and passport and visa documents.
• Step 3: Complete the application form: Download the home loan application form from the official website or the nearest Muthoot Finance branch. Fill in your personal, employment, income, and property details and attach the required documents.
• Step 4: Submit the application: Submit the completed application form and documents through the online portal or at the branch. The HFC authorities will then acknowledge the application and begin the preliminary review process.
• Step 5: Loan verification, approval, and disbursal: The authorities at Muthoot Finance will then verify your documents, assess your credit profile, evaluate the property, and declare your loan eligibility. Upon approval, a loan sanction letter will then be issued. Once the loan agreement is signed, the loan amount will be disbursed in accordance with the approved terms.

Tax Benefits on Muthoot Finance Home Loan

Muthoot Finance home loans are eligible for the same tax benefits as those offered by banks and other housing finance companies under the Income-tax Act, 1961. Depending on the purpose of the loan and the type of property, borrowers can claim the following tax deductions:

Note: Tax benefits depend on the borrower’s circumstances and the tax regime chosen. Consult with NoBroker’s expert financial advisor before claiming deductions.

Muthoot Finance Home Loan vs Banks: Which Should You Choose?

Muthoot Finance competes with housing finance companies and NBFCs, including Bajaj Housing Finance, Aptus Value Housing Finance, Aavas Financiers, and Vastu Housing Finance, for home loans. Here’s how Muthoot Finance compares to other lenders:

Disclaimer: All rates, charges, eligibility criteria, and loan features mentioned in this article are updated as of June 2026 and are subject to revision from time to time. Please check the latest details with the lender before making a decision.

Muthoot Finance Home Loan: Pros & Cons

While Muthoot Housing Finance is known for its flexible eligibility criteria and focus on informal borrowers, its interest rates are higher than those offered by other banks and NBFCs. The pros and cons of Muthoot Finance home loans are:

Who Should You Consider for a Muthoot Finance Home Loan?

A Muthoot Finance home loan is likely to be the best option for you if:

• You are self-employed or have a nontraditional source of income.
• You have minimum income documentation.
• You are looking for an affordable housing-focused lender.
• Your home loan application has been declined by another bank.
• You value flexible eligibility criteria over availing the lowest possible interest rate.

Ready to Apply for a Home Loan with NoBroker? 

Whether you’re purchasing your first home, constructing a house, or transferring an existing loan, comparing lenders and choosing the right home loan can help you secure the best interest rate and loan terms. While the process can be lengthy, NoBroker makes it easy with verified eligibility checks, loan comparison and expert analysis. NoBroker is your one-stop solution for home loan services, including end-to-end assistance with Muthoot Finance home loans and loans from other lenders.