Chennai is one of the primary IT hubs in India, providing ample job opportunities for its citizens. According to NoBroker.com, there has been a rise in home loan applications across cities, with Chennai being no exception to this trend.
This claim can be substantiated by the fact that Chennai itself has witnessed 40% growth in average home loan ticket size. Moreover, it is perceived to be an ideal time to buy a home as the RBI has kept the repo rate unchanged at 4%, making home loan in Chennai affordable. However, residents of Chennai should first select a lender offering the lowest home loan interest rate.?
Tips to reduce home loan interest rate
If one is looking to reduce the applicable home loan interest rate, he/she must take into consideration certain factors. One must keep the below-mentioned pointers in mind to avail of affordable interest rates:
1. Choose a shorter tenor?
Applicants can opt for a shorter tenor, reducing the overall interest outgo. Apart from the repayment tenor, one should also check the pre-approved offers available provided by leading financial institutions. These offers are available on home loans, loans against property, etc. To check the pre-approved offer, you need to submit your name and contact details.
2. Opt for a home loan balance transfer?
A home loan balance transfer is an option for existing home loan borrowers. This is a feasible option when borrowers find a new lending institution offering a low-interest rate. However, one must factor in the terms and conditions before switching the lender.
3. Make pre-payments regularly?
Besides paying monthly instalments, customers can make part-prepayments. Making such payments over and above the EMI will help lower the principal amount and pay off the loan faster.
4. Make a higher down payment?
Most financial institutions offer 80-90% of a property?s market value. Applicants need to make a down payment of the remaining amount. With an increase in down payment, the borrowed amount is less, fetching a lower interest rate.
Home loan eligibility criteria in Chennai
These are the standard eligibility criteria that individuals must meet to secure a home loan in Chennai:
- Must be a residing citizen of India.?
- Applicant?s age should range from 23 to 62 years.?
- The applicant should be employed with a stable income.?
- Must have three years of work experience?and must work in an MNC or a private company.?
- Moreover, an applicant must have a CIBIL score of 750 and above. Hence, borrowers must know?how to check CIBIL score?before availing home loans.
- The applicant should be a resident of India
- His/her 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 lenders, individuals also need to submit some essential documents. The list of documents is mentioned below:
- 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 ITR documents.
- 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.
How to apply for a home loan in Chennai
Most financial institutions offer their borrowers flexibility to apply for a home loan either online or offline. However, this varies from lender to lender, although the basic procedures remain the same:
Step 1: Research and compare different home loan schemes. This includes the home loan tenor and interest rate.
Step 2: Choose a suitable one after reading the terms and conditions.
Step 3: Navigate to the home loan tab and apply now.
Step 4: Fill in the application form and provide details, such as name, employment, income details, etc.
Step 5: After the security fee is paid, a manager will contact you. They will verify the details provided.
Hence, an applicant must consider the aforementioned tips to apply for a home loan in Chennai at a low-interest rate. Knowing the document requirement beforehand and the eligibility criteria will expedite the loan application process.