How To Get The Best Home Loan In Chennai?

One of India’s most urbanized and developed cities is Chennai. Being a large city, there are always good houses to buy, whether for someone who is moving to Chennai or has lived there their entire life. It is a good time to buy a place with a home loan in Chennai since there are laws that safeguard the buyer’s interests in the form of the RERA Act and less complication when it comes to taxes with the introduction of GST. With the right choice, you can easily avail the best home loan.

If you are looking to apply for a housing loan, there are multiple banks and NBFCs that will offer you a home loan at a very nominal interest rate. In addition to that, if you have a good credit score, you can easily negotiate the interest rates and avail of your loan at a much more affordable rate.

For instance, you can avail some of the best and lowest home loan interest rates in Chennai at various banks and NBFCs like NAVI. 

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Following is some information that will help you to get a better idea about the Home Loan:

1. People below the age of 21 years and above 65 years cannot apply for a home loan.
2. Depending upon the type of employment, a person’s minimum net annual income should be at least a minimum of Rs.5 lakh to be eligible to apply for a home loan. 
3. The person should be employed (salaried or self-employed). 
4. The person should have a permanent residence or rented residence where they have resided for at least one year prior to the loan application. 
5. The person must obtain a good credit score from a well-recognized credit bureau. 

There are other banks, too, which provide loans. Some of them are conventional banks and NBFCs such as LIC HFL Home Loan, Axis Bank Home Loan, State Bank of India Home Loan etc. However, new, age fintech platforms like Navi can help you with instant loan approvals when it comes to home loans in Chennai. 

Following are the documents that need to be provided by the person option for Home Loan in Chennai:

1. Proof of Identity – This includes a Voter ID Card, Valid Driving License, Valid Passport, and Aadhaar Card. 
2. Proof of Income: 
   1. For Applicants who are Salaried – 
      1. last three months’ salary slips. 
      2. Income Tax Returns of Form 16. 
   2. For self-employed applicants – 
      1. Income Tax Returns along with the computation of income for the last three assessment years. 
      2. CA certified/audited balance sheet and profit and loss account for the last three years.

Other Documents Include: 

1. All applicants and co-applicants must have their passport-size photos attached to the application form and sign it.
2. Bank statements during the last six months demonstrating repayment of any outstanding loans.
3. Processing Fee Cheque. 

Types Of Home Loans Offered In Chennai:

There are several different packages of the best home loan in Chennai available from banks and NBFCs. The following categories of home loans are available in Chennai, depending on the needs and goals of the customers. 

1. Home Loan for Purchase – Can be accessed by qualified borrowers wishing to buy a new home or apartment or to purchase an existing property.
2. Home Loan for Construction – This is suitable for people who desire to build their own home as opposed to acquiring an already built property. 
3. Home Conversion Loan – This can be used if you want to relocate to a new home or apartment after taking out a home loan previously and buying a home or other property with it.
4. Home Loan for Extension/Expansion – This is offered to potential borrowers who want to build an addition, expand their current home, or make other structural changes.
5. Home Improvement Loan – This type of loan is suitable for people who want to renovate or restore an existing building.
6. Home Loan Balance Transfer – For reasons including lower home loan rates in Chennai and better customer service provided by the alternative bank, those who prefer to switch their existing house loan from one lender to another mortgage can go for opting this option.
7. NRI Home Loan – Non-Resident Indians (NRIs) who want to buy a home in India can apply for an NRI home loan, which is created especially for them. When compared to the standard home loans provided by banks, NRI home loans have different approval procedures and requirements.

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Listed Below Are Some Top Financial Institutions For Home Loan In Chennai:

1. NAVI
2. LIC Housing Finance
3. Indiabulls Housing Finance 
4. Kotak Mahindra Bank
5. Aditya Birla Capital
6. State Bank of India 
7. Canara Bank
8. Axis Bank
9. HDFC Ltd. Bank

Home loans are available starting at 7.75% p.a. for loan amounts up to 90% of the value of the property and terms up to 30 years. For rural housing, affordable housing, and individuals without official income documentation, certain banks and Housing Finance Companies (HFCs) offer unique programs. 

Housing loan enablers additionally provide their existing borrowers from partner banks or NBFCs with low-interest balance transfer options. These options can come in handy in case you are dealing with a financial crunch. Therefore, whenever you’re looking to opt for a credit or, to be precise, a housing loan in Chennai, you should check out all the available options, including the new-age fintech platforms.

Frequently Asked Questions:

Q1. How much home loan am I eligible for if my CTC is 3.5 lacs?

Ans: Approximately the loan amount stands around 60 times your net income per month. Again, if you have just started your career and there are multiple people earning in your household, the eligible loan amount gets even higher.  

Q2. Whether you should take a home loan or purchase it with a lump sum amount?

Ans. Institutional Financial advisors suggest that you should always take a home loan even if you are financially capable of purchasing the property in one go. It is always advisable to pay a down payment and pay the remaining sum in large EMIs.

Q3. Does a home loan help in saving tax?

Ans. Yes. Tax deductions can be claimed for the interest on a Home loan in Chennai that is going to be paid over a financial year. The maximum amount stands around two lacs per annum on your annual income. On the other hand, if a home loan is taken out jointly, each borrower can deduct up to Rs 2 lakh in home loan interest under Section 24(b) and up to Rs 1.5 lakh in principal payments under Section 80C.