If you fall under the Informal Sector and need a Housing Finance, the Svatantra Micro Housing Finance Corporation Ltd (SMHFC) is your go-to. Svatantra has begun with the intention to financially help people who are excluded and need to purchase a roof to live under.

Being in the eyes of people from the past 10 years, Svatantra has won the trust of several customers and has its own identity in the market. Followed by a customer-centric approach and a dedicated team, it has its foothold in 6 states and is in-demand by many. Furthermore, the home loan interest rate is also nominal in contrast to the home loan. 

Setting various goals to strive for success and remaining in the good books of government organisations and private dealers, the aim incorporated within Svatantra is to help the employees working in the Informal Sector by locating their homes in urban areas.

In September 2018, the company was taken over by Svatantra Holdings. The Product Head Loans for Home Purchase, Kashyap Patel stated that post-acquisition, Svatantra received the much-needed flexibility, based on the capital. The risk factor has increased, along with a wide variety of transformations. This has resulted in the company’s growth and given it a new pathway to start afresh.

The goal in the previous 1/ 1½ years was to explore and work towards expanding. Tamil Nadu for that matter, has been added to the portfolio, along with the Retail Market. We have provided the customers with a plethora of choices to choose the ‘house of their dreams,’ and the locations as well. Along with being technologically-driven, Svatantra is using the COVID-19 scenario to outgrow their company, in terms of technology and use it to its potential, he added.

Update: Svatantra has recently launched two of its very own products – Loan Against Property (LAP) & Loan to Purchase Commercial Space (NRP).

With Svatantra, other institutions like Dewan Housing Finance Limited have developed their name in this market. Given below are housing institutions in India,

  • Can Fin Homes Limited
  • Cent Bank Home Finance Limited
  • Aadhar Housing Finance Limited
  • GIC Housing Finance Ltd
  • GRUH Finance Ltd
  • ICICI Home Finance Company Ltd
  • LIC Housing Finance Ltd
  • PNB Housing Finance
  • Sundaram BNP Paribas Home Finance Ltd

Along with institutions, you will need to be aware of certain certifications. Under Section 29A of the National Housing Bank Act, 1987, Housing Finance Companies granted with the COR are,

Prosper Housing Finance Limited Home First Finance Company India Private Limited
Indiabulls Housing Finance Limited Aham Housing Finance Private Limited
Mahindra Rural Housing Finance Ltd Shriram Housing Finance Limited
Micro Housing Finance Corporation Ltd (MHFCL) Manappuram Home Finance Private Limited
Orange City Housing Finance Limited New Habitat Housing Finance and Development Ltd
Sahara Housingfina Corporation Ltd Homeshree Housing Finance Limited
SRG Housing Finance Ltd Capital First Home Finance Limited
Vastu Housing Finance Corporation Ltd Aspire Home Finance Corporation Limited
IIFL Home Finance Limited Aditya Birla Housing Finance Limited
Edelweiss Housing Finance Limited Fullerton India Home Finance Company Limited

Note: The Reserve Bank of India (RBI) regulates the Housing Finance Companies in India.

Most of you from the Informal Sector would want to vouch upon Affordable Housing Finance Companies (AHFCs). More than 70% of the Indians in the urban sector are employed under the Informal Sector. These companies have made ownership accessible for low-income employees working in the Informal Sector. So far, there are 26 AHFCs, providing a loan portfolio of $4.1+ billion in India and they have financed over 2, 30, 000 houses. They have the capacity of equity and debt, along with providing geographical expansion. It determines the current situation of the market so that the customers are aware of the current rates.

The takeaways for employees with a lower income ($230-$770/ month) do not possess official documentation related to income. They also consist of independent financial units and provide you with homes in smaller multi-unit buildings, built by informal builders to give them equal amounts of recognition.

Even though the industry portrays immense growth, banks take up loans from AHFCs, and they perform fieldwork to approach customers without any compensation. Apart from this, housing finance companies improve the conditions of living for those residing in slums and for customers who have received approval for the Beneficiary Led Construction Scheme of the PMAY.

As quoted by these companies, the innumerable number of low-income employees working in the Informal Sector are capable of innovation which is field-based. Furthermore, Lendforall is also a best option. this can be extended and expanded to pertain to issues and ensure immense growth to adhere to the underserved segments. 

On a concluding note, there are a bunch of Home Loan Resources,

Home Loan Resources Housing Schemes
Home Loan Top Up PMAY
Home Loan Process RERA, MahaRERA
Encumbrance Certificate PMAY-Urban
Home Loan Tax Benefits TNREGINET

Note: The segregation done in the table above, falls under two different elements. Kindly do not mix and match to avoid misunderstandings.

You can also check the rates through a Home Loan Calculator,

  1. Home Loan EMI Calculator
  2. SBI EMI Calculator
  3. PMAY Subsidy Calculator
  4. Home Loan Prepayment Calculator

With a variety of schemes and housing options, employees under the Informal Sector will get an idea on how to go about it and revolve around the same.