Despite the Covid-19 pandemic, residential property sales have increased by 71% y-o-y in the year 2021. Besides, there was a rise in residential prices, with Chennai being no exception to this trend. This demand was accelerated by low home loan interest rates offered by the financial institutions and government initiatives.
Furthermore, this is an ideal time to buy your dream home as RBI has kept the repo rate at 4%, keeping the volatile economic condition in mind. However, if you are a resident of Chennai, you should first know about the application process for a home loan in Chennai.
How to apply for a home loan in Chennai?
Most financial institutions offer their borrowers the flexibility to apply for loans both online and offline. However, individuals can choose the online method to ensure a hassle-free application process for a home loan in Chennai.
But this procedure may vary from lender to lender, although the essential step remains the same. Underlined below are the steps:
1: Research and compare different home loan schemes. This includes the home loan tenor and the interest rate provided.
2: Choose a suitable one after carefully reading all the terms and conditions.
3: Navigate to the home loan section and press the tab ‘apply now.
4: Fill in the application form. Provide essential details, such as name, employment status, income, property details, etc.
5: After the security fee is paid, a manager will contact you. He\she will explain in-depth the loan disbursal process.
6: Next, individuals must upload all the necessary documents and complete their applications.
However, one must know about the eligibility criteria and documentation before applying for a home loan in Chennai. Furthermore, homeowners can claim deductions under the Income Tax Acts.
Applicants can consider owning property jointly with their spouse due to the various home loan tax benefits they can enjoy. These are the sections under which one can save taxes while applying for a home loan in Chennai:
- Section 80C
- Section 24B
What are the eligibility criteria?
These are the standard eligibility criteria that individuals must meet to secure a home loan in Chennai:
Salaried
- Must be a residing citizen of India
- Their age should range from 23 to 62 years
- The applicant should be employed with a stable income
- Must have three years of work experience
Self-employed
- The applicant should be a resident of India
- Their age should range from 25 to 70 years
- They must be self-employed with a business continuity of 5 years
Documents required for home loan application in Chennai
Apart from meeting the eligibility criteria set by the lenders, individuals also need to submit some essential documents. The list of documents is mentioned below for easier understanding:
- KYC documents, such as voter ID, driving license, Aadhaar card.
- Income proof documents include salary slips from the last two months, or IT returns for salaried individuals. On the other hand, for self-employed individuals, it is mandatory to show proof of TR documents, and IT returns.
- Bank statements of the previous six months for both categories.
- Proof of business ownership. These include documents such as registration and partnership agreements.
- Three passport-sized photographs.
- Residence proof.
In India, several financial institutions extend pre-approved offers to expedite loan applications. These offers are available on several financial products, such as home loans, loans against property etc. Applicants need to provide essential contact details, such as name and contact number to check their pre-approved offers.
Hence to settle for the best home loan in Chennai, applicants must look for a reasonable interest rate and EMI options. However, they must ensure that they meet the desired eligibility criteria and provide the necessary documents for a hassle-free process.
