Cholamandalam Home Loan

Cholamandalam Home Loan

About Cholamandalam

Cholamandalam Investment and Finance Company was incorporated in 1978 as the financial services company of the Murugappa group. Today, Cholamandalam Finance operates from 858 branches, serving 8 Lakhs customers across India.

What Is a Home Loan?

Home Loan is offered to individuals who wish to construct or buy a house. The property bought or about to be constructed is mortgaged as collateral until the repayment of the loan is completed with full interest. The repayment of the loan generally depends on the capacity of the borrower. Normally, the home loan tenure ranges between 5 to 30 years. The borrower can opt either for floating type of interest or fixed interest rate. Home loan provides tax benefits to the borrowers.

An Introduction to Cholamandalam Home Loans

Cholamandalam offers a wide range of services in the home loan segment. It is the most preferred bank by all kinds of people for any financial service. Packed with exclusive benefits, Cholamandalam Home Loans are tailor made catering to the needs of various customers.

Advantages of Cholamandalam Home Loans

• Attractive interest rates with floating and fixed type based on your preference
• Low interest rates
• Low processing fees
• Less paperwork
• No prepayment penalties
• No hidden costs and administrative charges
• Easy home loan balance transfer
• Transparent application process
• Flexible repayment options

Key Highlights

Features of Cholamandalam Home Loan

Objective: Cholamandalam home loan aims to help millions of people achieve their dream of owning a house.

Loan Amount: The loan amount is also determined by the repaying capacity and credit profile.

Rate of Interest: The interest rate of Cholamandalam home loans is linked to Internal Benchmark. The interest rate could range between 12.6% to 29%. The interest rate is subject to change at the discretion of the bank.

Processing fee: Up to 2% of the loan amount

Tenure: The repayment period is determined based on the loan amount, repaying ability and income.

Easy Balance Transfer: With this facility, you can transfer your existing home loan with other bank to Cholamandalam for a lower interest rate.

Prepayment: No charges are levied on partial prepayment or foreclosure of the home loan.

Insurance Policy: An insurance cover to protect your family against repayment of home loan in the event of unfortunate situations.

Documents Required to Apply for Cholamandalam Home Loans

Important documents to be submitted while applying for home loans with Cholamandalam

• Completed loan application
• 3 Passport size photographs
• Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
• Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill)
• Statement of Bank Account/ Pass Book for last six months
• Form 16/IT returns for the last two financial years for salaried employees
• IT returns for the three years for self-employed professionals
• Property tax receipt
• Proof of business address for non-salaried individuals
• Personal assets and liabilities statement

For guarantor (wherever applicable):

• Personal Assets and Liabilities Statement
• 2 passport size photographs
• Proof of identification as above
• Proof of residence as above
• Proof of business address as above
• Signature identification from his/her present bankers

EMI Payment Methods

Your Cholamandalam home loan can be repaid in following three ways.

Standing Instruction (SI):

If you are an existing account holder with Cholamandalam, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Cholamandalam account you specify.

Electronic Clearing Service (ECS):

This mode can be used if you have a non-Cholamandalam account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs):

You can submit post-dated EMI cheques from a non-Cholamandalam account at your nearest Cholamandalam Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.

It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for Cholamandalam Home Loan?

You can either apply online or visit a nearby Cholamandalam branch for the application. You can also download the home loan application form from the Cholamandalam official website, complete the form and submit it the bank representative.

You can also check your eligibility for a home loan through CreditMantri and apply for it.

Summary of Cholamandalam Home Loans

With attractive interest rates and low processing fees, Cholamandalam caters to the needs of various sections of people. Floating and fixed type of interest rate are available according to the preference of the customers. The borrowers can prepay the Cholamandalam home loan without any penalty. Cholamandalam home loan is the best option to buy or construct your dream house.

Cholamandalam Home Loan FAQs

1. Is there penalty for prepaying the Cholamandalam Home Loan?

No penalty is levied for prepaying the Cholamandalam Home Loan.

2. Can I top up my existing Home Loan?

Yes, you can get additional funding on your existing home loan.

3. What is the maximum loan repayment period for Cholamandalam home loans?

The maximum repayment is determined based on your repaying ability, credit profile and loan amount.

4. How Can I apply for Cholamandalam home loan?

You can either apply online or visit a nearest Cholamandalam branch and take the help of the bank’s representative.

5. What is the maximum loan amount provided by Cholamandalam?

The maximum loan amount depends on the market value of the property.

6. Does Cholamandalam facilitate balance home loan transfer?

Yes, you can transfer your existing home loan to Cholamandalam.

7. Can I get tax benefits from Cholamandalam Home Loan?

As per Section 80C read with section 80CCE of the Income Tax Act, 1961 the principal repayment up to INR 150,000 on your home loan will be allowed as a deduction from the gross total income subject to fulfilment of prescribed conditions.