Know How to Apply for a Home Loan In Madurai

Madurai, formerly known as Madura, is a city in Tamil Nadu and a major industrial and educational hub of the state. The city is home to many chemical, automobile, rubber, and granite manufacturing industries. Also known as the cultural capital of Tamil Nadu, Madurai, sometimes also referred to as Athens of the East, is historically significant for its monuments. Plus, the city witnesses good connectivity by roads, rail, and air. 

These factors, combined together, have rallied the property market in Madurai in the recent past. Further, Madurai will soon turn into a smart city and therefore, it is not very surprising that more and more people wish to invest in the city. To make it easier for aspiring homebuyers to become homeowners, many financial institutions have been offering lucrative home loan deals in Madurai.     

Before applying for a home loan in Madurai, the very first thing that one should do is to ascertain one’s budget and affordability as well as gather an understanding of the eligibility criteria set by most lenders for a home loan in the city. Borrowers must also know that lenders in Madurai assess one’s home loan application against factors, such as age, salary, current financial obligations, past repayment history, credit score, etc. 

Applicants can use an online housing loan EMI calculator to know their exact equated monthly instalments (EMI) liability on their home loan and prepare for their home loan journey in advance. The housing loan EMI calculator requires you to fill in details, such as preferred loan amount, preferred loan tenor, and the rate of interest offered by the lender. Once you fill in the details, the online calculator will instantly give you the monthly instalments that need to be paid to the lender, with details of interest amount and the principal amount payable every month to the lender. The EMI calculator will also help you determine what loan amount will be affordable for you. 

If you are planning to apply for a home loan in Madurai, having a good CIBIL score is a must and one of the key factors that will determine your home loan eligibility. A credit score of 750 and above will not only give you the chance to get quick approval but also allow you to negotiate a lucrative home loan deal with your lender. 

How To Apply For Home Loan In Madurai?

Apply for home loan is often considered to be a tedious and time-consuming task. However, if one follows the below process then it will enable for faster processing of a home loan in Madurai. One can always apply online for a home loan by following these steps.

Fill the Application Form

Filling an online application form is the foremost step to start off the process. To avail of a home loan, begin by filling out the home loan application form. Most lenders will allow you to fill this form online. The form would require you to provide details, such as name, age, address proof, education, employment, and income details, property details, etc.

Document Submission and Verification

After you have filled in all the required details and made an application to a lender using an online home loan application form, you will have to submit or upload the proofs of the details shared in the form. The lender will verify your documents and assess your loan eligibility as well as your ability to repay the loan during the specified tenor. After you have filled in the application form, you will have to upload the following documents:

1. KYC documents (Aadhaar card, Pan card, ID proofs, address proofs) 
2. Income proofs (salary slip for salaried employees, Form 16, and P/L statement for self-employed along with other documents)   
3. Documents related to IT returns
4. Bank account statement of past 6 months
5. Proof of business
6. Property papers, such as sale agreement, payment receipts, allotment letter, etc.

Irrespective of the lender you are applying to, the above list of documents will come in handy. Over and above the documents mentioned above, some lenders may ask you for additional documents. 

Approval and Sanction Letter

The most important step in the home loan application process is the step when your chosen lender decides to approve /reject your application. If approved, the lender will send you a sanction letter with details of the approved loan amount, applicable interest rate, tenor along with other terms & conditions related to the loan.

Property Verification

The lender will also check the documents of the property you plan to pledge as collateral as well as do background verification of the builder to check for any legal dispute or any other concerns related to the property. The original documents related to the property need to be submitted to the bank.

Disbursement Of Home Loan Amount

After the completion of all the formalities, your chosen lender will approve and disburse the agreed loan amount directly into the builder’s account, the home loan EMI of which will start getting debited from your loan account. The borrower can avail of the home loan tax benefits on the property once it is completely constructed.

Summing Up

If you are planning to become a homeowner in Madurai, do not delay — Madurai is an excellent city to invest in and your investments will most certainly bring in returns.