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Cholamandalam Finance Home Loan

Cholamandalam Finance
4.5

Take advantage of extended loan periods and various repayment options when you apply for house loans. With Interest rates starting from 9 %. Urban Money is the place to go for all of your housing loan needs because to its straightforward documentation, rapid processing, and exceptional customer service.

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Home Loan Banks

Interest Rate

Processing Fee

Rating

Loan Amount/Tenure

Cholamandalam Finance Home loan Interest Rate

Cholamandalam Finance

9% - 12%

2%

4.5

₹5L - ₹50L

Tenure(15 - 30 Years)

Details

Benefits of Cholamandalam Finance Home Loan

When you secure a home loan from the Cholamandalam Investment and Finance Company, you get an array of amazing benefits. Here are the benefits you unlock with a Chola Home Loan:

Loans for All

Cholamandalam Investment and Finance Company offers home loans to all salaried individuals and self-employed persons. If you cope with the home loan eligibility criteria set by the bank, you can avail of the loan with utmost ease.

Minimum Documentation

Cholamandalam Investment and Finance Company demands minimal documents to provide quick and hassle-free home loan approval.

Hassle-free Procedures

Applying for a Cholamandalam Investment and Finance Company Home Loan comes in handy, especially through the official website. All you have to do is fill out the application form and submit the same along with the requisite documents. Once the lender receives your application, the evaluation process is completed at your convenience. The presence of the website and the option to apply online made the entire process hassle-free.

Home Loan Instalments that Fits Your Pocket

Cholamandalam Investment and Finance Company allows borrowers to choose a flexible repayment tenure per their current financial conditions. You don't have to burden yourself with huge home loan EMIs.

Additionally, you get the floating interest rate option for your home loan repayment.

Repayment Flexibility Of the Home Loan

Cholamandalam Investment and Finance Company provides several options for creating a home loan repayment structure that matches your financial status. You get flexibility regarding loan repayment tenure, part-prepayments, foreclosure, and prepayment.

Tax Benefits

One of the foremost benefits you get with a home loan is tax benefits. Under Section 80C, Income Tax Act, 1961, a borrower can claim up to INR 1.5 lakhs on the principal loan amount.

Eligibility Criteria of Cholamandalam Home Loan

You just have to meet the minimal Cholamandalam Investment and Finance Company Home Loan eligibility criteria to get quick approval on your home loan application. Chola home loans are available for both salaried and self-employed individuals. You just have to provide the required set of documents. However, you can contact the bank executive to enquire more about this exclusive financial product.

Cholamandalam Finance Home Loan Fees and Charges

Before applying for a home loan from Cholamandalam Investment and Finance Company, you must know the charges you might have to pay before and post your loan disbursal. You must be ready to pay these charges and understand whether you can bear the same or not.

Specifics Rates
At the time of home loan application
Loan Processing Charges INR 5,000 (inclusive of GST)
Admin Fees 2% of the Approved Loan Amount
Post disbursement of loan/Customer service charges
To get an Account Statement  INR 500 + GST
Swapping Charges INR 500 + GST
Pre-closure charges Not Applicable 
Duplicate NOC INR 500 + GST
Switch Interest Rate Charges 1% of the Outstanding Loan Amount
Collection Charges
Additional Interest towards Late Payments The borrower is bound to pay 1.50% of the additional rate of interest on the applicable rate towards the delayed EMIs
Cheque Bounce INR 500 + GST
Field Visit INR 250 + GST (Applicable for every visit)
Legal Charges Associated with Repossession and Recovery along with Incidental charges On Bank’s Discretion 

Cholamandalam Investment and Finance Company Home Loan Interest Rates

When you apply for a Cholamandalam Investment and Finance Company home loan, you must get acquainted with the offered interest rates. The monthly repayments comprise principal and interest components. As a result, a specific chunk of the repayment amount goes towards the interest component. Knowing the interest rates beforehand helps you understand how much you will have to pay for loan foreclosure.

Cholamandalam Investment and Finance Company home loan interest rates slightly differ for different categories. The below-depicted table discloses the offered interest rates:

Category Interest Rate Per Annum
Prime Salaried Employees and Self-Employed Applicants From 9% to 15%
Applicants that belong to Low Income Salaried Category From 10% to 15%
Affordable Housing (for construction, purchase of new house or expansion of the existing property) From 12% to  17%
Factors Affecting Cholamandalam Finance Home Loan Interest Rates

A home loan is a top-notch financial instrument that allows you to get your dream home without depleting your savings. Securing a home loan may or may not be feasible for you in financial terms, and it entirely depends on your monthly repayment amount. Every repayment towards the borrowed amount orients around the interest rates.

To unlock the best possible home loan deal, you must consider essential factors affecting the interest rates of the Cholamandalam Investment and Finance Company Home Loan. Having these factors in point will escalate your application resulting in guaranteed approval.

Loan Amount

The home loan interest rate hinges on the amount you apply for. Even though Cholamandalam Investment and Finance Company offers housing finance up to six times the annual income, it does not mean an applicant necessarily needs to borrow the entire eligible amount.

Initially analyse your requirement and apply for the needed amount. Don’t forget you will be repaying the borrowed amount for decades, and the more the amount, the more the repayment amount will be. Additionally, as the amount increases, so does the repayment tenure and the interest component. So, always restrict the loan amount within your need.

Loan Repayment Tenure

Even though the banks and NBFCs provide several years for home loan repayment, you should always count on a possible shorter tenure. Short-term time frames attract low home loan interest rates regardless of the increased monthly repayment amount.

When you rely on a prolonged tenure, the possibilities are you will unlock a great deal in interest terms, but you will end up paying a higher interest component.

Furthermore, you can pin your hopes on Urban Money Home Loan EMI Calculator to decode the exact amount you will pay throughout the loan repayment tenure.

Applicable Interest Type

Home loans are available at fixed rates and floating rates. When you opt for fixed interest rates, your EMI remains the same throughout the loan repayment tenure. Floating interest rates result in dynamic monthly instalments as the rate is subject to RBI’s repo rate. When the floating rate decreases, so do the monthly payments and vice versa.

You can avail of the benefits of decreased monthly EMI amount through floating interest rates. But in the case of fixed home loan interest rates, you will have to pay a static amount towards the borrowed loan. Several lenders allow borrowers to shift to a floating rate from a fixed rate after repaying the amount for a specific time frame.

Credit Profile and Repayment History

The credit score of the applicant and repayment history plays an essential role in determining the Cholamandalam Investment and Finance Company Home Loan interest rate and creditworthiness. With a score less than 700, the bank may or may not approve your loan request. You will get the loan at higher interest rates if your loan application gets approved.

When the lender receives a loan application, the credit profile is initially considered to determine creditworthiness, risk factor, repayment history, and financial stability. The lower the credit score, poor the repayment history, and the more the risk factor. An applicant with a higher CIBIL Score falls in the category of a reliable borrower, and the bank grants the loan at lower interest rates.

Loan-To-Value Ratio (LTV)

LTV ratio is the percentage of property value for which the lender will provide you with the home loan. A borrower with a higher LTV ratio gets a home loan at higher interest rates. The key reason is the involvement of more risk factors. However, you get the option to reduce this ratio by making a down payment of a higher amount. It further results in reducing the principal amount, followed by lowering the applicable interest rate.

Annual Income and Type of Employment

Cholamandalam Investment and Finance Company Home Loan is available for both salaried and self-employed individuals. Regardless of the category you fall in, you can avail of a home at lower interest rates if you have a steady income source. Government and PSU employees, along with working professionals, are considered to be less risky as they have a steady income source.

At the same time, startups and SMEs fall into the high-risk applicants' category as lenders find it difficult to estimate their repayment capabilities and ROIs.

Documents Required for Cholamandalam Finance Home Loan

Be prepared with the following documents ahead of time to get loan approval in no time. In general, Cholamandalam Investment and Finance Company Home Loan documents comprise common and income proof documents.

Common Documents

  • Filled out home loan application form
  • Two passport-size photos
  • Documents associated with ID proof
  • Date of Birth proof documents
  • Residence proof documents
  • Copy of Aadhaar Card and PAN Card
  • Property documents for which you are securing a home loan
  • DD or cheque for the payment of the Processing fee

Income Documents in Case of Salaried Applicants

  • Salary slips for last six months
  • Bank account statement (last six months)
  • Employment proof validating your employment in the current organisation

Income Documents in Case of Self-Employed Applicants

  • Profit and Loss business account statements (last three years)
  • Balance Sheet
  • Income Tax Returns (last three years)
  • A broad summary inclusive of the nature of business, year of establishment, annual income, net worth, etc.
  • Bank Statements of all business accounts
  • Business licence

How does the EMI Calculation Work for Cholamandalam Finance Home Loan?

You can calculate your EMIs by being acquainted with the principal loan amount, repayment tenure and Cholamandalam Investment and Finance Company home loan interest rate. The EMI calculator works on the following formula. However, the home loan EMI calculator also computes values based on this formula.

EMI = (P × R × (1+r)^n)/((1+r)^n-1)

Where,

  • The principal loan amount P  can be up to 80% of the property value.
  • The rate of interest ranges from 9 to 17%.
  • The loan tenure: n falls in the bracket of 10 to 20 years.

How does Cholamandalam Finance Compare with other Lenders?

The below-depicted table provides a clear comparison of how Cholamandalam Investment and Finance Company's home loan compares with other banks and NBFCs in the market:

Lender Interest Rate up to Rs. 30 lakhs (%) Interest Rate above Rs. 30 lakhs to Rs. 75 lakhs (%) Over 75 lakhs (%)
Canara Bank   7.05 to 11.85% 7.05 to 11.85% 7.05 to 11.85%
State Bank of India 6.65 to 7.65% 6.65 to 7.65%     6.65 to 7.65%  
HDFC 7.00 to 8.45%  7.00 to 8.60%  7.00 to 8.70%
Axis Bank   7.00 to 1.90%   7.00 to 11.90%   7.00 to 11.90%
ICICI Bank 7.10 to 7.95%   7.10 to 7.95%    7.10 to 7.95% 
Kotak Mahindra Bank From 7.00% onwards  From 7.00% onwards  From 7.00% onwards 
PNB Housing Finance        6.75 to 12.00% 6.75 to 12.00%  6.90 to 9.75%
Punjab National Bank        6.95 to 8.35%     6.90 to 8.05%   6.90 to 8.00%
Bank of Baroda 6.90 to 8.40%     6.90 to 8.40% 6.90 to 8.65%
Union Bank of India 6.50 to 8.25%     6.50 to 8.45%     6.50 to 8.45%   

Cholamandalam Finance Home Loan Customer Care Number

If you have any inquiries or need assistance from the bank executives you can contact their toll-free number, i.e. 1800-102-4565. Additionally, you can drop a message on 9500000312.

FAQs

From refinancing to reducing your interest, we have the answers right here.

Does Cholamandalam Investment and Finance Company provide home loans at the best rate?

The Cholamandalam Investment and Finance Company provides home loans at the best rate ranging from 9% to 17%.

What is the interest rate of a Home Loan in Cholamandalam Investment and Finance Company?

Cholamandalam Investment and Finance Company’s interest rate ranges from 9% to 17%. The home loan interest rate may vary as per your Credit score, financial history and annual income.

What benefits does Cholamandalam Investment and Finance Company provide on Home Loan?

Cholamandalam Investment and Finance Company provides numerous benefits on home loans, including attractive interest rates, flexible repayment tenure, quick and hassle-free process, minimal documents and much more.

What documents are required in Cholamandalam Investment and Finance Company for a home loan?

To get a home loan from Cholamandalam Investment and Finance Company seamlessly, you must provide the required documents. In general, these documents are identity proof documents, residence proof, income proof, business proof and property documents.

How to apply for a home loan in Cholamandalam Investment and Finance Company online?

To apply for a Cholamandalam Investment and Finance Company home loan online, visit the official website and click on the home loan section. Fill out the application form, upload the required documents and submit the same. After receiving the application for a home loan, the bank executive will get in touch with you through call in the minimal possible time.

Does Cholamandalam Investment and Finance Company Checks for CIBIL Score for Home Loan?

Yes, Cholamandalam Investment and Finance Company takes the CIBIL score into account to determine the credibility of the home loan applicant. Additionally, it helps to decide the interest rate at which the home loan can be approved.

What are the KYC documents I must submit to apply for a home loan from Cholamandalam Investment and Finance Company?

The KYC documents you must submit to apply for a home loan from Cholamandalam Investment and Finance Company include an aadhaar card and PAN Card.

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