home loan in chennai

A Complete Guide on How to Apply for a Home Loan in Chennai

Chennai, also known as the “Gateway to South India,” is a cosmopolitan that incorporates both traditional and modern lifestyle. It is easily one of the most preferred residential locations in India. 

The real estate industry is booming in Chennai for the past couple of years. The city’s constantly growing infrastructure attracts potential home and property buyers from all over the country. However, if you want to buy a property in Chennai, you will be needing a huge sum of money to build your dream house. Some people take loans to fulfil this requirement. In this article, we will tell you how you can take a home loan in Chennai for the same purpose.

Benefits of Home Loan in Chennai

There are numerous branches of banks and NBFCs scattered across Chennai. You can choose banks based on the interest rates they offer, processing fees they charge, and other conveniences they are providing to the home loan takers. 

You must consider the following benefits and apply for a home loan to build your own house in Chennai. 

  1. In Chennai, you can avail of a home loan to buy a new property or renovate your existing house.
  2. Home loan interest rate in the city is comparatively less when compared to other loan products. 
  3. The interest rate is subsidized by the government under the PMAY scheme if you are a first-time homeowner. 
  4. The tenor for repayment is relatively long. Therefore, it facilitates a lower EMI burden on the consumer. 
  5. The banks will assist in looking out for properties based on your needs as well as help you with other formalities during your loan application. 

Home Loan Interest Rate in Chennai

The interest rates on a home loan in Chennai vary from 6.70% to 14.00%. The processing fees are in the range of 0% to 1.25% of the total loan amount. The tenor for repaying the loan varies from 1 year to 30 years.

Check out the following tables to locate the exact interest rates offered by the banks.

Bank Interest Rate
SBI 6.70% – 7.30%
HDFC Ltd 6.75% – 8.00%
ICICI Bank 6.75% – 7.55%
Axis Bank 6.90% – 8.55%
Indiabulls HFL 8.65 % Onwards
DHFL 9.05% – 9.95%
IDBI Bank 6.80% – 9.90%

Eligibility Criteria

You should meet certain eligibility conditions before you can apply for a home loan in Chennai. We are listing all these conditions here so that you are well prepared before beginning the application process. 

Age

  • The minimum age limit for the applicant is set at 21 years. Applicants below 21 years cannot apply. 
  • Further, the applicant’s maximum age should not exceed 58 years till the maturity of the loan. 

Income

  • The annual income of the salaried applicant from all sources should be a minimum of 1,80,000 INR. 
  • The annual income of a self-employed applicant from all sources should be at least 1,80,000 INR. 
  • If you have a firm in partnership, then your firm must have your PAT (profit after tax) at 3 Lakh INR, at the least. 

Job Stability:

  • A salaried individual should have stable employment. He/she should have been in a stable job(s) for more than 2 years. And his/her current employment should be minimum of 1 year. 
  • If you have a business, then your business stability is required for a minimum of 3 years period.

Documents Required for Home Loan

You are required to submit a list of documents along with your home loan application. Kindly do not miss any of these, keep them in sound condition for hassle-free application processing. Here’s the list of those documents required for a home loan.

For Salaried Applicants

  • Salary slip
  • Updated bank statement from all the accounts
  • Filled Form 16

For Self-Employed Applicants

  • PAN Card
  • Partnership contract
  • Import Export Code
  • SEBI Registration Code
  • GST Registration Code
  • Roc Registration Code
  • Memorandum of Association
  • Trade License
  • Financial Statement
    • Your business’s balance sheet audited duly by a CA
    • Your latest bank statements
    • Profit/Loss statement 

Common Documents for Both Self- Employed and Salaried Individuals

  • Identity Proof
  • Address Proof
  • Documents of the Property
  • Recent passport sized photographs 

Process of application (Online)

You can easily apply for your home loan in Chennai through online mode. Follow these simple steps to avail a home loan at the comfort of your home.

1- Go to the Home Loan Page of the bank/NBFC you are considering.

2- Open the form by clicking on the “Home Loan Application Form” link.

3- Enter all the relevant details, such as your personal information, employment details. address, and mobile number. 

4- After completing the form, you will receive a call from the bank’s/NBFC’s representative, who will help you with the further steps.

We hope the information provided in this article will help you apply for a home loan in Chennai. Kindly check the documents required for a home loan, interest rates, and the home loan eligibility criteria before applying. When you fulfil all the conditions and follow appropriate procedure, you are just one step away from buying your dream house.

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