Let me first tell you, similar to a tenement, a chawl is a kind of residential structure you can find throughout western India, particularly in Mumbai. Chawls are connected with poverty and low-quality housing. Coming to your query, can you get a housing loan in chawl room? Yes, you can get a housing loan for purchasing a chawl room in India. However, let me tell you, it depends on several aspects which I mentioned below.
Can I Get a Home Loan on Chawl Room?
Yes, but it depends on the property and your eligibility.- Because of the special qualities, banks and other financial organisations thoroughly assess these properties before granting loans.
- There should be no legal issues and a clear ownership of the property. All required local government approvals, such as the Occupancy Certificate (OC) and Completion Certificate (CC), must be present in the chawl chamber.
- Make sure the lease is good for a long time if the chawl sit on leasehold property. Registration in a cooperative society increases the likelihood that a loan will be approved.
- Banks may provide loans for up to 70–80% of the property value for chawl rooms, lower than conventional homes because of higher perceived risks.
- I came to know from my lawyer friend, because of higher perceived risks, banks may only lend up to 70–80% of the value of chawl rooms.
- Some banks and NBFCs (like SBI, HDFC, ICICI, or LIC Housing Finance) may have restrictions on financing chawl properties. NBFCs are typically more flexible than banks.
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Hi,
As far as I'm aware, a number of financial organisations offer loans against chawl properties. Nevertheless, you must verify that the chawl is legally recognised. With all the necessary documentation, you can contact banks to learn more about the same.
If You Want to Rent Out Your Chawl, you can Post a Free Advertisement on NoBroker!
I hope this helps:)
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Authors Of The Question
Can I Get a Home Loan for a Chawl Room?
mahendrakumar shiavaji londhe
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1 Year
2023-09-14T09:22:52+00:00 2024-12-22T11:30:03+00:00Comment
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