Beneficiary LedConstruction

Beneficiary Led Construction for low income earners
  • Loans available to customers for constructing house on aplot of land owned by them
  • Activities covered under these loans ranges from house construction, extension and improvement
  • Maximum Loan amount is Rs 10 Lacs and maximum tenure is 20 Years
  • Loans can be covered under CLSS depending whether the land is in Urban or Rural area. CLSS will be applicable onlyin Urban and Semi Urban areas.
Loan Terms
Loan Amount Minimum Rs. 1 Lakh & Maximum Rs 10 lakhs Higher amounts can be considered on exception basis.
Tenor Maximum 20 Years
Interest Rate Beneficiary Led Construction Loans - 16% p.a. to 18% p.a. (Floating Rate linked to SMHFC PLR - currently 13%)
Lower or Higher rates would be at the discretion of the management.
Processing Fee Maximum 3%+ GST of the loan amount.
Prepayment Charges Nil.
Cheque Bounce Charges Rs. 500 + GST per event
Statement Charges Rs. 500 + GST (In case of hard copy is requested)
Late Payment Charges 2 % per month on the amount due
Document Retrieval Charges Rs 500 per document or Rs 1000 for all documents + GST
List of Documents (LOD) / Foreclosure Letter Charges LOD - Rs. 500 + GST Foreclosure Letter - Rs. 500 + GST
Incidental Charges for recovery of delayed payments At Actuals
Cheque Handling Charges Rs. 150 + GST per transaction (only for overdue collections)
Cash Handling Charges Rs 300 + GST per transaction (only for overdue collections)
Loan to Value Maximum 85%
Security Equitable Mortgage Or Registered Mortgage on the plot of land alongwith construction thereon.
Repayment Through customer's electronic standing instruction (NACH) for all Equated Monthly Installments (EMIs)
MITC SMHFC will adhere to the Most Important Terms and Conditions ("MITC") on all loans as prescribed by the National Housing Bank.
Other Conditions SMHFC will facilitate customers to take a mortgage redemption policy through SMHFC's tie up with HDFC Life. The exact insurance amount will depend on the age, loan amount & loan tenor.