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Best Home Loan in Chennai: More Savings with NoBroker

Below is a quick summary of the prevailing interest rates for home loans in Chennai, which is aimed at empowering prospective clients to make well informed decisions.

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Comparing Home Loan Rates in Chennai

LenderHome Loan Interest Rates In ChennaiProcessing Fees & ChargesMaximum Loan AmountMaximum Loan Tenure
Aavas Financier Limited Home Loan8%2%-30 Years
Aditya Birla Capital Home Loan9% - 12.50%1%10 Crores30 Years
Andhra Bank Home Loan8.15% - 9.20%0.50% or ₹15000 + GST (whichever is lower)-30 Years
Axis Bank Home Loan8.75% - 14%1%10 Crores30 Years
Bank of Baroda Home Loan8.50% - 10.60%0.25%- 0.50%10 Crores30 Years
Bank of India Home Loan7.80% - 9.65%-7.50 Crores30 Years
Bank of Maharashtra Home Loan8.40%0.25% or 25,000 (whichever is lower)1 Crore30 Years
Canara Bank Home Loan8.85%- 11.25%₹1,500 - ₹10,0003 Crores30 Years
Central Bank of India Home Loan8.45% - 9.20%0.50% or ₹20,000 + GST (whichever of lower)75 Lakhs30 Years
DBS Home Loan8.25% - 9.75%-5 Crores25 Years
Dena Bank Home Loan8.25% - 8.35%0.50%1.5 Crores30 Years
Dhanalakshmi Bank Home Loan7.2%1% or ₹10,00 + GST (whichever is higher)1 Crore30 Years
DHFL Home Loan8.75%-5 Crore30 Years
Federal Bank Home Loan10.15% - 10.30%-15 Crores30 Years
HDFC Ltd. Home Loan8.50% - 9.60%0.50% or ₹3000 (whichever is higher)10 Crores30 Years
IDBI Bank Home Loan8.75% - 11.45%-10 Crore30 Years
IDFC First Bank Home Loan8% - 14%3%10 Crores30 Years
Indiabulls Home Loan8.75%1%2 Crores30 Years
Indian Overseas Bank Home Loan9.55%--30 Years
India Shelter Finance Corporation Home Loan13% - 20%2% - 3% + GST50 Lakhs20 Years
Jammu and Kashmir Bank Home Loan8%0.25% + GST50 Lakhs30 Years
Karnataka Bank Home Loan9.08% - 10.38%0.50% - 2%5 Crores30 Years
Karur Vysya Bank Home Loan9.23% - 12.13%₹2500 - ₹7500 + GST-25 Years
Kotak Mahindra Bank Home Loan8.85% - 9.40%0.50%10 Crores20 Years
LIC HFL Home Loan8.70%0.30% onwards10 Crores30 Years
PNB Housing Home Loan8.50% - 10.85%-2 Crores30 Years
Reliance Home Finance Limited Home Loan9.35% - 13%0.50% - 1.50%-20 Years
South Indian Bank Home Loan7.95% - 9.60%0.50% + GST15 Crores30 Years
State Bank of India Home Loan9.55%₹2000 - ₹10000 + GST5 Crores30 Years
Sundaram Home Finance Ltd Home Loan6.95% - 8.30%0.50%4 Crores25 Years
Tamilnad Mercantile Bank Home Loan9.10% - 9.60%0.50%5 Crores30 Years
Tata Capital Limited Home Loan8.95%2%5 Crores30 Years
Union Bank Home Loan8.75%0.50% or ₹15000 + GST (whichever is lower)-30 Years
Yes Bank Home Loan9.15% - 11.25%1.5% - ₹10000 (whichever is higher) 10 crores35 Years

Eligibility For Home Loan In Chennai

In order to qualify for a housing loan in Chennai, potential clients must satisfy the following requirements:

  1. Age : The applicant’s age must fall within the range of 21 to 65 years at the time of loan maturity.
  2. Income : To be eligible for a home loan, most lenders require a minimum annual income of Rs. 2-3 lakh.
  3. Employment stability : Lenders typically prefer applicants who have been employed for at least 2-3 years.
  4. Credit score : Most lenders look for a credit score of 750 or higher when considering home loan applications.
  5. 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:

KYC DocumentsAadhaar card, PAN card, passport, and voter ID card
Proof of IncomeSalary slips, income tax returns, Form 16, and bank statements
Property-related DocumentsProperty registration papers, property tax receipts, and NOC from the builder or society
Proof of EmploymentOffer letter, appointment letter, and employment contract
OthersPassport-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.

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.

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.

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.
Can I avail of tax benefits on a joint home loan in Chennai?+
Yes, joint loan applicants can claim tax benefits in both the principal and interest components, subject to conditions. The maximum deduction allowed is Rs. 1.5 lakhs per person per year for the principal amount and Rs. 2 lakhs per person per year for the interest amount under Section 80C and Section 24 of the Income Tax Act, respectively.
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