Home Loans

A home loan is a loan offered to business owners and salaried individuals for the purchase of a home to reside in. Customers can choose to have a house constructed on their land, extend their existing home by adding a floor, buy a resale flat/independent house, buy a new flat/independent house from a developer or transfer the balance from a home loan availed from another financial institution.

At Chola, the documents required for a Home Loan are minimal. KYC documents (Address Proof such as Aadhaar card, Latest utility bill, etc.; Identity Proof such as Pan Card, Driving License, etc.) and bank account statements are mandatory. For business owners, proof of business establishment is required. For salaried customers, the last 3 months' pay slips and Form 16 are required.

Home loans typically have a maximum tenure of 30 years and a minimum tenure of 5 years.

To apply for a home loan one must be at least 21 years old when the loan period begins and should not exceed an age of 65 years when the loan ends or at the time of superannuation.

Yes you can apply for a joint loan with your spouse or immediate family like your parents and children. Friends and other contacts do not qualify as a joint applicant with you.

A floating interest rate fluctuates or changes along with market conditions. If one chooses a floating interest rate he/she ends up paying a different EMI amount each time the base rate changes. This rate could increase in an increasing interest rate scenario and vice-versa.

Fixed rate home loans are offered at a predetermined interest rate during the loan period and these remain unchanged during the loan period irrespective of market conditions.

Yes you have the option of switching from a floating rate to a fixed rate home loan and the other way around. Charges may be applicable for switching from fixed to floating rate.

Your EMI will be deducted directly from your account upon registration of your mandate with NACH (National Automatic Clearance House).

Yes, one can repay the loan amount before completion of the scheduled loan tenure by paying off the amount outstanding. Prepayment charges may be applicable based on the loan type and nature of closure.

At Chola, the documents required for a Home Loan are minimal. KYC documents (Address Proof such as Aadhaar card, Latest utility bill, etc.; Identity Proof such as Pan Card, Driving License, etc.) and bank account statements are mandatory. For business owners, proof of business establishment is required. For salaried customers, the last 3 months' pay slips and Form 16 are required.

Yes, you get a tax deduction and other home loan benefits. Under Section 80C, you can claim deductions up to Rs. 1.5 lakh for the principal repayment done in the financial year. Under Section 24B, you can claim deduction for up to Rs. 2 lakh for the accrual and payment of interest on a home loan. In the case of a joint home loan, each borrower can claim a deduction of principal repayment (Section 80C) and interest payment (Section 24B) if they are also the co-owners of the property. The above information is a summary of relevant provisions under the Income Tax Act. Please read the concerned income tax provisions in detail or consult tax advisors for a full understanding of the implications.

If you have an existing home loan and have made timely repayments towards the existing home loan, you may get the option of borrowing an additional loan. This is termed as a top-up loan. The interest rates on a top-up loan are less than a personal loan and it requires little or no paperwork to process this loan and the money can be used for a range of expenses.

A home loan is a long-term loan (up to 20 years tenure). Hence, lenders want to ensure that they will get their money back in the long term. Therefore, the loan sanctioning authority will check your credit history before sanctioning a home loan to you. However, at Chola, it is not mandatory to have a credit score and first-time borrowers are also eligible for loans.

There are various types of home loans depending on your specific requirement. Some of the key ones are as follows: Self-Construction: This type of loan is granted to individuals for the construction of a house on a plot of land that they own. Purchase/Resale: This type of home loan is granted to individuals who would buy an existing property (Flat/Independent house) from the previous owner. Purchase a new home from the developer: This type of home loan is granted to individuals to buy a new property (Flat/Independent house) from the builder. Home Expansion/Extension: This loan is specifically granted to individuals who want to expand their current home to include a new construction such as an additional floor, room, bathroom, etc. Balance Transfer: Individuals who have already availed a home loan from another financier may choose to transfer the remaining balance to another financier. The property is valued again and therefore the individual may be able to borrow a higher amount than the balance (Top-up) while going in for a Balance Transfer loan. Shop Loan: This type of home loans is granted to buy or construct a shop/commercial establishment. At Chola we provide loans to own your own commercial premises.