Chennai is a popular educational, cultural and economic hub in the Southern part of India. Home to the magnanimous Tamil film industry, it has also transformed into an IT hub and is home to hundreds of MNCs. Labeled as the Detroit of India, this cozy city is also home to one-third of the automobile industry of India. All these points attract expatriates to this city.
The demand in the real estate and housing sector has skyrocketed triggering housing inflation. During the first quarter of 2019, inflation of 12.4 percent was recorded in the city. However, with numerous banks offering home loan in Chennai, you can own an apartment you have been eyeing for long with no hassles.
Features of Home Loan in Chennai
There are numerous benefits of availing a housing loan in Chennai. Here are some features that you can take advantage of:
- Affordable housing scheme
If you are a first-time home buyer, you can take advantage of the affordable housing scheme launched by the Government of India. This permits you to claim a subsidy of up to 2.67 lakh INR. This helps you to service your loan at a nominal interest rate.
- Balance Transfer
This is an interesting feature offered by various banks in Chennai. If you are repaying your home loan at a high-interest rate, then you can consider balance transfer to another financial institution to ease your burden. This process will also lower your credit instantly and requires no tedious paperwork.
- Foreclosure Facility & Part Prepayment
There are numerous financial institutions like Bajaj Finserv that permit you to close your loan before the tenure ends. Under this feature, you can make partial prepayments towards the primary loan amount and lower your EMIs over the remaining balance.
- Flexible Tenure
Almost all financial institutions in Chennai offer a flexible tenor of home loan repayment. You can choose your tenor based on your affordability. This helps you repay back your loan in an easy way without crossing your budget.
Interest Rates & Tenure of Home Loan
Interest rates on home loans in Chennai vary greatly from one financial institution to another. Both public and private firms offer lucrative home loan deals. The interest rate generally varies from 8.30 % to 19 %.
State Bank of India charges an interest rate of 8.30-8.65%. You can repay back the amount between 1-30 years.
HDFC Bank charges an interest rate of 6.95%-7.85% over the same tenure.
Axis bank provides both fixed and floating options with interest rates of 8.40%-11.75%.
Andhra Bank charges an interest rate of 8.75%-8.85%.
The interest rate charged by Dhanalakshmi Bank varies from 9.75%-10% and the repayment tenure is from 3-20 years.
Banks which offer Home Loan in Chennai
All popular public and private banks and other financial institutions offer home loans in Chennai. Each bank offers its own set of features over the loans. You need to go through them to decide which institution you should go for. SBI, ICICI Bank, Andhra Bank, Karnataka Bank, HDFC Bank, Canara Bank, Bank of Baroda, Indian Overseas Bank, Karur Vysya Bank, and many others offer home loans in Chennai at lucrative interest rates and other features.