Home Loan in Chennai
Buying a home in Chennai is a profitable decision because the city offers fascinating residential, economic, educational, cultural, and healthcare opportunities. No matter whether you have adequate funds or not, you can still fulfil your dream of owning a home in Chennai with the help of prominent banks and housing finance companies. The interest rate for a home loan in Chennai starts at 8.50% per annum. Most banks and NBFCs charge 0.25% of the loan amount or Rs. 10,000 as a one-time processing fee for approving home loans in Chennai. An eligible applicant can easily grab a housing loan in Chennai for a maximum loan repayment tenure of up to 30 years. Choices are ample for a borrower to apply for a home purchase loan, home construction loan, home conversion loan, home improvement loan, NRI home loan, balance transfer home loan or a mortgage Loan in Chennai.
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Home Loan Interest Rates in Chennai
The primary source for banks to earn is through interest on loans. Lending money as home loans for a tenure of up to 30 years carries inherent risks, which these lenders cover through these interest rates. The home loan in Chennai interest rate starts at 8.50% per annum and might go to higher limits. The table below enlists the best housing loan Chennai interest rate offered by the top banks and NBFCs:
| BASIC Bank/NBFC Partner | Name | Max Tenure (in years) | Rate of Interest | Processing Fees (INR) | Contact |
|---|---|---|---|---|---|
|
LIC HFC | 30 | 8.50% - 10.75% | Up to 0.25% (Rs. 25,000 max; one-time) | Enquire |
|
L&T Finance Ltd | 30 | 8.55% - 10.30% | Rs. 10,000 (one-time) | Enquire |
|
Bajaj Housing Finance | 30 | 8.60% - 15.00% | 0.30% - 1.00% (one-time) | Enquire |
|
ICICI Bank | 30 | 8.65% - 9.40% | Up to 0.30% (one-time) | Enquire |
|
HDFC Bank | 30 | 8.65% - 9.85% | Up to 0.25% (Rs. 3,540 min; one-time) | Enquire |
|
Union Bank of India | 30 | 8.70% | Up to 0.50% (Rs. 15,000 max; one-time) | Enquire |
|
Kotak Mahindra Bank | 20 | 8.75% - 9.60% | Up to 0.25% (Rs. 10,000 max; one-time) | Enquire |
|
PNB Housing Finance | 30 | 8.75% - 11.45% | Up to 0.50% (Rs. 10,000 max; one-time) | Enquire |
|
SBI Bank | 30 | 9.15% - 12.95% | Up to 0.25 (Rs. 10,000 max; one-time) | Enquire |
|
Tata Capital | 30 | 8.95% - 12.00% | Up to 0.25% (Rs. 3,540 min; one-time) | Enquire |
Eligibility Criteria for Home Loans in Chennai
Every day, thousands of applicants apply for home loans in Chennai. So, the banks and NBFCs in Chennai set their eligibility criteria and approve home loans to the applicants who meet those criteria. The table below enlists the standard home loan eligibility in Chennai followed by a majority of banks and housing finance companies:
| Eligibility Parameters | Salaried Individuals | Self-Employed Individuals |
|---|---|---|
| Citizenship | Indian/ NRI/ PIO | Indian/ NRI/ PIO |
| Professional Experience | 3 years | 3 years |
| Age |
Min: 21 years Max: 65 years |
Min: 21 years Max: 65 years |
| Monthly Income | Minimum Rs. 5 lakhs per annum |
Minimum Rs. 5 lakhs per annum
|
| CIBIL Score | 750+ (preferred) | 750+ (preferred) |
Note: Applicants are encouraged to declare any additional sources of income besides those mentioned in the table above to boost their chances of getting a home loan approval.
- All home loan applicants seeking housing finance at top banks and NBFCs must be Indian residents. Some banks and NBFCs also offer home loans to NRIs and PIOs
- Both salaried and self-employed home loan applicants should ideally be between 21 and 65 years of age
- Salaried and self-employed applicants must demonstrate at least 3 years of professional experience and business establishment, respectively
- Both salaried and self-employed home loan applicants must have a Credit/CIBIL score of more than 750 to qualify for availing home loans at Chennai banks
Note:These criteria are subject to variation from one bank to another. It is recommended that you check with the specific bank you are applying to for a home loan for its eligibility requirements.
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Documents Requirement for Home Loans in Chennai
Through your KYC documents, a bank or NBFC in Chennai will verify your credibility as a borrower for a home loan. In general, all these financial lenders ask for a standard set of documents that can establish the applicant's identity, age, signature, employment, nationality, income, and credit history. Have a look at the list of essential documents for a home loan in Chennai:
1. For Salaried Loan Applicants
- KYC documents such as Voter ID, Driving License, PAN card, Aadhaar Card, and Passport
- Passport size photographs of the applicant and co-applicant
- Proof of income such as salary slips of the previous 3 months, the latest Form 16, and the latest ITR
- Bank statements for the last 3 months
- A cheque for the processing fee for the loan application
- Property documents such as certificate of possession, original NOC, agreement sale copy, letter of allotment, detailed cost of construction, and land tax receipt
2. For Self-Employed Loan Applicants
- KYC documents such as Voter ID, Driving License, PAN card, Aadhaar Card, and Passport
- Passport size photograph of the applicant and co-applicant
- Recent Form 26AS
- Bank account statement for the last 6 months
- ITR with computation of income for previous 3 years as proof of income
- Profit & Loss account statements and Balance Sheets for the last 3 years
- Business profile and license of the company
- A cheque for the processing fee for the loan application
- Property documents such as certificate of possession, original NOC, agreement sale copy, letter of allotment, detailed cost of construction, and land tax receipt
| Type of Document Required | Examples of Documents that can be Submitted |
|---|---|
| Proof Of Residency | Aadhaar Card, Valid Passport |
| Proof Of Income | Bank Passbook, Bank statement, Last 3 years IT Return |
| Proof Of Age | PAN Card, Voter ID, Birth Certificate, Registration Certificate Of Establishment |
| Proof Of Employment | Certified Letter from Employee/Company Memorandum |
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Home Loan Options Available in Chennai
The housing finance companies in Chennai offer various home loan schemes to interested homebuyers. Whether it is a loan requirement to purchase, construct, improve, convert, or improve a home, these financial lenders are always ready with lucrative home loan schemes in Chennai. Listed below are some of the popular offerings by the best bank for home loans in Chennai:
| Type of Document Required | The Object of the Loan |
|---|---|
| Home Purchase Loan | To buy a residential home such as a flat or an apartment |
| Home Construction Loan | To construct a house on an already purchased plot |
| Home Extension or Expansion Loan | To extend an already existing home by adding a floor, balcony, or a room |
| Home Improvement Loan | To improve an existing house with activities such as wiring, painting, and other activities |
| Home Conversion Loan | To move to a new home after already having availed a home loan before |
| Balance Transfer Home Loan | To transfer the existing loan amount to a new lending party offering a lower rate of interest |
| NRI Home Loan | To help NRIs purchase a home in India with minimum formalities. |
Note:The options tabulated above are the most popular loan options availed of by most customers. Please check with your specific bank for other home loan options that they offer.
FAQs
Chennai houses several popular banks and housing finance companies that help buyers buy homes with easy home loans. At the moment, in banks, you can consider HDFC or ICICI Bank, which offer housing loans starting at 8.65% per annum. For a lower interest rate, you may consider LIC Housing Finance Company, which offers home loans at 8.50% per annum.
The process to get a home loan in Chennai is simple. You must start with some research on the different banks and NBFCs and choose the one that offers the lowest interest rate and customer-friendly features. Once this is done, you must fill in the loan application and submit the documents along with a processing fee cheque in favour of the lender. Alternatively, you can contact the BASIC Home Loan team to assist you with a hassle-free, digital home loan application procedure.
The minimum interest rate for a home loan in Chennai starts at 8.50% per annum by LIC HFC. However, we recommend that you refer to the official website to verify the latest rate of interest on home loans in Chennai.
No banks or housing finance companies offer a 100% home loan in Chennai. However, they offer up to 90% of the property cost as a home loan to eligible borrowers.
Yes, many banks and housing finance companies in Chennai offer home loans to salaried individuals. Make sure to check their minimum salary requirement and other eligibility criteria before applying for a home loan.