It is quite likely that you dream of owning a house. Maybe you are not yet sure where to buy one. We suggest Chennai! Chennai is the coastal capital city of the state of Tamil Nadu in the southern part of India. It is one of the four major metros in the country. It is well-known for its rich cultural history, a thriving intellectual milieu engaged in the arts and theatre, and the abundance of quality educational institutes. To be able to buy a house in Chennai, you, probably, will need a home loan there. Ahead, in this post, we will guide you to find out how you can apply for home loan in Chennai.
Before that, let us understand what makes Chennai special if you opt to live there:
- The beaches—The only other metro in the country which has any beach is Mumbai but the beaches in Chennai are far superior by their mere expanse, length, and quality.
- Weekend getaways—Chennai has amazing options in close proximity for mini-vacations, such as Pondicherry, Ooty, Coorg, Yercaud, Bangalore, and so on. Even though the city is hot, it offers several cooler options to beat the heat on holidays.
- Affordability—Chennai, as a city, makes available an urban lifestyle at a reasonable rate. Compared to metros, such as Mumbai and Delhi, which are far more expensive, Chennai is affordable and well equipped. It too has all types of modern infrastructure facilities available along with a good lifestyle for both millennials and their older counterparts.
- Socio-cultural hub—Chennai is a pulsating intellectual hub in the southern part of our country. People here are inclined towards classical music, dance, theatre, arts, and cinema. There is ample scope to witness these artistic circles and enjoy their company while also enjoying an urban life.
- Superior educational institutes—Chennai has some of the most prestigious educational institutes in the country, right from schools to colleges to an IIT.
- Job opportunities—Chennai is the southern headquarters of several top MNCs and businesses. There are ample business opportunities.
If you are feeling excited to start living in Chennai, let us help you find out how you can apply for a home loan there:
- You have to first scout for and shortlist houses on the basis of your needs, wants, and income. To gauge your loan eligibility (over and above your down payment), it is recommended to have an initial interaction with a few banks/lenders of your choice and/or use an online home loan eligibility calculator. After this, zero in on your property.
- Educate yourself about the latest home loan interest rate trends in the market as governed by the latest quarterly monetary policy.
- Next, shortlist your lenders/banks to which you’d like to apply for a home loan. You might want to consider factors, such as application processing TAT, customer service standards, potential charges, such as pre-foreclosure charges, reputation and liquidity of your chosen lender, fees and charges involved, interest rates offered, financial stability, and branch location.
- Once you have finalised your lender, apply for your home loan with them after determining the quantum of down payment you can make from your own savings. Banks and other home loan lenders finance only up to 85% of the property price. You will have to bear the remaining 15% from your own funds.
For a housing loan in India and finding out your home loan eligibility criteria, the bank/lender will review your application. The parameters used generally and the documents required for home loan to review such applications are stated below. It is prudent for you to keep these in mind and try and improve on some of the scores before applying for a home loan. It minimises the chances of application rejection:
- Your CIBIL score or credit score, which is determined by your debt history, payment and default records, and so on. This score is generated over time; even a single default in payment of either an EMI on an existing loan or credit card outstanding dues can impact the score adversely. A score of 700 and above is considered optimum.
- Your investment diversification into stable and risky assets. Higher the risks in your investments, higher will be your home loan interest rate.
- Your personal income, profession (MNC/Government job, Self-employed, or others), historic trend in income credits and projections based on that—all of these affect your home loan eligibility
- Your age as an applicant is of significance—the younger you are, the better chances you have for a lower interest rate and better is your eligibility
- The reputation of the builders of the property which you have chosen to buy is important to a lender/bank to decide if the property has adequate market value. This further impacts your home loan eligibility.
- After the bank/lender verifies your eligibility, application, and reputation to their comfort your loan application is likely to be approved.
Apply for a home loan in Chennai now!