Alisha Antil
Chennai, being the 4th most populous city in India, has considerable demands when it comes to financing. A mortgage loan in Chennai is highly preferable as it comes with more benefits compared to its unsecured alternative – personal loan. Personal loans require a credit score of 750 or above; those who never availed credit won’t have such a credit score.
A customer has to provide an asset as collateral to the lender for availing a Loan Against Property. Thus, mortgage loans come as a viable substitute for personal loans and also bring with it several added benefits.
Some other features of mortgage loans one can enjoy in Chennai include:
- High Loan Amount
NBFCs offer up to Rs. 1 Crore to salaried individuals and up to Rs. 3.5 Crore to self-employed ones. The amount is considerably higher for mortgage loans compared to personal loans.
- Interest Rates
Being a secured financing option, the Loan Against Property Interest Rate is comparatively lower than other loans in Chennai.
- Longer Tenures
A mortgage loan in Chennai can come with tenure of up to 20 years for salaried individuals and up to 18 years for self-employed individuals.
- Minimal Documentation
Lenders only require the following documents for availing a mortgage loan:
- KYC documents
- Address proof
- Bank account statement
- Salary slips
- Income tax returns
- Property documents
One needs to submit only the original property documents once the mortgage loan is approved.
- Rapid Disbursal
Many non-banking financial institutions provide instant mortgage loan approval. They disburses a mortgage loan within 72 hours after completion of the documentation process.
Being a substitute to personal loans, a mortgage loan can be used for various purposes. Some of the popular uses of such loans in Chennai include:
- Business Expenses
Whether it is starting a company or paying off fixed costs, working capital is essential for keeping a business operational. Entrepreneurs may find it hard to raise seed capital while owners may come across a cash crunch and thus, have trouble paying daily expenses.
Similarly, low revenue can give rise to debts which business owners need to pay off for avoiding bankruptcy. Whether it is working capital or debt consolidation to benefit in multiple ways, mortgage loan in Chennai can come to the rescue of business owners.
Additional Read: Are Mortgage Loans Worth The Cost?
- Education
Sending the child to IIT Madras, Great Lakes Institute of Management, Madras Institute of Technology and others will call for substantial funds. Home mortgage loans deliver the financial support that a father requires to fund the child’s higher education in distinguished educational institutes.
- Wedding
Hosting a Big Fat Indian Wedding in an A-1 city like Chennai requires considerable cash. Those who are planning to host a wedding in InterContinental Chennai Mahabalipuram Resort, or Vivanta by Taj, or any other 5-star venue have to churn out huge sum of money. Not only the venue but attires, decoration, manpower, catering services, etc. also call for big investments.
In such cases, one can opt for mortgage loans to host a grand and memorable wedding. However, before that, know everything about availing such credit for financing a marriage.
- Medical Expenses
Emergency situations involving medical expenses require immediate funds. As mortgage loans are disbursed within 72 hours, they can rescue a borrower in these instances.
Owing to the features and benefits mentioned above, a mortgage loan in Chennai is one of the widely availed financing options. Customers can use a mortgage loan calculator to calculate their EMIs before opting for such credit.
