Chennai is one of the main metropolitan cities in India and its appeal is far reaching. It is the cultural and financial capital in South India and the nerve center of business and commerce there. The demand for housing in Chennai has increased drastically in the recent years and investing in an asset in this city is one of the best ways of securing the future.
Property in Chennai is not going to come cheap and hence a considerable amount of financial planning should go into it. Thankfully, there are many banks and NBFCs who have good Home Loan interest rates that could make the dream of having a house in this city a reality. Add to that schemes like Pradhan Mantri Awas Yojana under the Credit Linked Subsidy Scheme and this scheme is meant for the MIG, LIG and EWS sections of the society. Any household which does have not have a pucca house anywhere in the country can apply under this scheme to have house of their own.
One can opt for a Home Loan in Chennai to avail this scheme. Under the PMAY, the tenure of the loan would be equal to the number of years till it takes him to reach 60 years of age in the case of salaried individual and 70 years in the case of self employed people. One could use a housing loan EMI calculator to determine how much monthly payments would have to be made each month. The calculator is an online tool and it would help calculate the EMI based on certain information like the income of the applicant, the loan tenure, the interest rate, the expected principal amount of the loan and whether there are any additional sources of income. The LIG and EWS group, whose maximum household income can be up to Rs 6 lakhs, can also enjoy a subsidy of 6.50%. For MIG-I, whose income is Rs 6 lakhs to Rs 12 lakhs, the interest subsidy is 4% and for MIG-II, whose annual household income could be Rs 12 lakhs to Rs 18 lakhs, the interest subsidy is 3%.
Certain documents required for Home Loan would also have to be submitted for the successful disbursal of the loan. They include Photo ID and Age Proof, Address Proof and the IT returns for the last three consecutive years, which is the same for all. For salaried people, one would have to provide the salary slip of the last six months and the bank statement of the last three months. Those who are self employed or have their business will have to provide the TAN as a business proof, along with sales tax documents. Apart from these, the creditors could ask for any other documents as per their requirements.
If you are thinking of buying a Home Loan in Chennai, then you are also eligible to get some tax benefits and under the IT Act of 1961, Rs 2 lakhs is the applicable exemption under Section 24 B for the interest amount. For the principal amount, the tax exemption under 80C is Rs 1.5 lakhs.