Best Home Loan In Chennai
Home loan in Chennai is a reliable solution for individuals looking to buy or construct homes in the city. With low-interest rates, quick approvals, and flexible repayment plans, home loan options in Chennai ensure a smooth financing experience.
Looking for the best home loan options in Chennai? With various banks and financial institutions providing competitive interest rates and flexible repayment plans, you can find the perfect loan to make your homeownership dreams a reality. Explore your choices now!
Eligibility For Home Loan In Chennai
In order to qualify for a housing loan in Chennai, potential clients must satisfy the following requirements:
- Age : The applicant’s age must fall within the range of 21 to 65 years at the time of loan maturity.
- Income : To be eligible for a home loan, most lenders require a minimum annual income of Rs. 2-3 lakh.
- Employment stability : Lenders typically prefer applicants who have been employed for at least 2-3 years.
- Credit score : Most lenders look for a credit score of 750 or higher when considering home loan applications.
- Property valuation : Before approving a home loan, banks evaluate the legal and valuation aspects of the property being purchased to ensure it meets their criteria.
Documents Required To Get The Best Chennai Bank Home Loan Interest Rates
To apply for a home loan in Chennai, potential clients are required to procure the following documents:
| DOCUMENT TYPE | DOCUMENT |
|---|---|
| KYC Documents | Aadhaar card, PAN card, passport, and voter ID card |
| Proof of Income | Salary slips, income tax returns, Form 16, and bank statements |
| Property-related Documents | Property registration papers, property tax receipts, and NOC from the builder or society |
| Proof of Employment | Offer letter, appointment letter, and employment contract |
| Others | Passport-size photographs, loan application form, and declaration of assets and liabilities |
Please be aware that the documents required for a home loan may differ depending on the lender and the amount of the loan.
Comparing Home Loan Rates in Chennai
| Lender | Home Loan Interest Rates In Chennai | Processing Fees & Charges | Maximum Loan Amount | Maximum Loan Tenure |
|---|---|---|---|---|
| Aavas Financier Limited Home Loan | 8% | 2% | – | 30 Years |
| Aditya Birla Capital Home Loan | 9% – 12.50% | 1% | 10 Crores | 30 Years |
| Andhra Bank Home Loan | 8.15% – 9.20% | 0.50% or ₹15000 + GST (whichever is lower) | – | 30 Years |
| Axis Bank Home Loan | 8.75% – 14% | 1% | 10 Crores | 30 Years |
| Bank of Baroda Home Loan | 8.50% – 10.60% | 0.25%- 0.50% | 10 Crores | 30 Years |
| Bank of India Home Loan | 7.80% – 9.65% | – | 7.50 Crores | 30 Years |
| Bank of Maharashtra Home Loan | 8.40% | 0.25% or 25,000 (whichever is lower) | 1 Crore | 30 Years |
| Canara Bank Home Loan | 8.85%- 11.25% | ₹1,500 – ₹10,000 | 3 Crores | 30 Years |
| Central Bank of India Home Loan | 8.45% – 9.20% | 0.50% or ₹20,000 + GST (whichever of lower) | 75 Lakhs | 30 Years |
| DBS Home Loan | 8.25% – 9.75% | – | 5 Crores | 25 Years |
| Dena Bank Home Loan | 8.25% – 8.35% | 0.50% | 1.5 Crores | 30 Years |
| Dhanalakshmi Bank Home Loan | 7.2% | 1% or ₹10,00 + GST (whichever is higher) | 1 Crore | 30 Years |
| DHFL Home Loan | 8.75% | – | 5 Crore | 30 Years |
| Federal Bank Home Loan | 10.15% – 10.30% | – | 15 Crores | 30 Years |
| HDFC Ltd. Home Loan | 8.50% – 9.60% | 0.50% or ₹3000 (whichever is higher) | 10 Crores | 30 Years |
| IDBI Bank Home Loan | 8.75% – 11.45% | – | 10 Crore | 30 Years |
| IDFC First Bank Home Loan | 8% – 14% | 3% | 10 Crores | 30 Years |
| Indiabulls Home Loan | 8.75% | 1% | 2 Crores | 30 Years |
| Indian Overseas Bank Home Loan | 9.55% | – | – | 30 Years |
| India Shelter Finance Corporation Home Loan | 13% – 20% | 2% – 3% + GST | 50 Lakhs | 20 Years |
| Jammu and Kashmir Bank Home Loan | 8% | 0.25% + GST | 50 Lakhs | 30 Years |
| Karnataka Bank Home Loan | 9.08% – 10.38% | 0.50% – 2% | 5 Crores | 30 Years |
| Karur Vysya Bank Home Loan | 9.23% – 12.13% | ₹2500 – ₹7500 + GST | – | 25 Years |
| Kotak Mahindra Bank Home Loan | 8.85% – 9.40% | 0.50% | 10 Crores | 20 Years |
| LIC HFL Home Loan | 8.70% | 0.30% onwards | 10 Crores | 30 Years |
| PNB Housing Home Loan | 8.50% – 10.85% | – | 2 Crores | 30 Years |
| Reliance Home Finance Limited Home Loan | 9.35% – 13% | 0.50% – 1.50% | – | 20 Years |
| South Indian Bank Home Loan | 7.95% – 9.60% | 0.50% + GST | 15 Crores | 30 Years |
| State Bank of India Home Loan | 9.55% | ₹2000 – ₹10000 + GST | 5 Crores | 30 Years |
| Sundaram Home Finance Ltd Home Loan | 6.95% – 8.30% | 0.50% | 4 Crores | 25 Years |
| Tamilnad Mercantile Bank Home Loan | 9.10% – 9.60% | 0.50% | 5 Crores | 30 Years |
| Tata Capital Limited Home Loan | 8.95% | 2% | 5 Crores | 30 Years |
| Union Bank Home Loan | 8.75% | 0.50% or ₹15000 + GST (whichever is lower) | – | 30 Years |
| Yes Bank Home Loan | 9.15% – 11.25% | 1.5% – ₹10000 (whichever is higher) | 10 crores | 35 Years |
Top 5 Locations To Buy Homes In Chennai
Below is a list of the most sought-after and highly recommended areas in Delhi that are ideal for purchasing a home, along with some accompanying details :
- Porur : Porur is another emerging suburb located in West Chennai that has seen a surge in real estate development in recent years. It offers a good mix of affordable and premium housing options and is well-connected to other parts of the city through road and rail networks.
- Velachery : Velachery is a rapidly growing suburb in South Chennai that is well-connected by road and rail. It has good schools, hospitals, and shopping centres, making it a popular choice for families.
- OMR (Old Mahabalipuram Road) : OMR is a fast-developing IT corridor and one of the most preferred locations for professionals working in the IT sector. It offers a range of options for buyers with a mix of apartments, villas, and plots.
- Anna Nagar : Anna Nagar is another popular residential locality with good infrastructure and excellent connectivity to other parts of the city. It is known for its well-planned layout, good schools, shopping centres, and entertainment zones.
- Adyar: : Adyar is one of the most sought-after residential areas in Chennai, known for its scenic location near the beach, well-connected roads, and proximity to some of the best schools, colleges, and hospitals in the city.
Tax Benefits On Home Loan Rates In Chennai
Here are the tax benefits that come with taking out a home loan in Chennai:
- Tax deduction on interest payment : Section 24 of the Income Tax Act, 1961 permits the borrower to claim a deduction of up to Rs. 2 lakh on interest paid for self- occupied property, while rented-out property has no maximum limit.
- Tax deduction on principal repayment : Borrowers can claim a deduction of up to Rs. 1.5 lakh on the principal repayment of a home loan under Section 80C of the Income Tax Act, 1961.
- Tax benefits on joint home loans : If a home loan is taken jointly, each borrower can claim tax benefits on the interest paid and principal repayment in proportion to their share in the loan.
- Tax benefits on pre-construction interest : During the pre-construction period, borrowers can claim a tax deduction on the interest paid, which is divided into five equal instalments, beginning in the year of construction completion.
- Tax benefits on stamp duty and registration charges : Under Section 80C, borrowers can claim a deduction on stamp duty and registration charges paid when purchasing a house, subject to a maximum limit of Rs. 1.5 lakh.
NOTE:Tax benefits can fluctuate depending on the changes in tax laws and regulations. Clients are advised to consult a tax expert for thorough information on tax benefits of home loans.
FAQs
What is the difference between fixed and floating interest rates on home loans in Chennai?
Home loans have fixed or floating interest rates. Fixed rates remain unchanged while floating rates can vary with the market. Fixed rates offer stability while floating rates can be lower during favourable market conditions.
What is the maximum loan amount I can get for a home loan in Chennai?
To qualify for a home loan in Chennai, one's income, credit score, and property value are determining factors. Typically, banks provide up to 80% of the property value, and the maximum loan amount varies by the lender. The typical upper limit for home loans in Chennai is between Rs. 10-20 crores.
Can I prepay my home loan in Chennai without penalty?
Although most banks permit the prepayment of home loans without penalty, a few may charge a fee if the prepayment amount surpasses a particular limit or happens within a specified period, such as the initial year of the loan.
How long does it take to process a home loan application in Chennai?
In Chennai, the processing duration for home loans varies depending on the bank, and it usually takes 2-3 weeks for document verification, property appraisal, and loan approval. Nevertheless, certain types of loans may offer faster processing alternatives.
