Questions & Answers

Frequently Asked Questions

Get answers to your queries

A mortgage is like a contract in which you use your property as a promise to repay a loan. Within that, a home loan is a special kind of contract to buy houses. So, every home loan is a type of mortgage or a subset of mortgage loan.

You can apply for a home loan by visiting the nearest South Indian Bank branch or click here to apply online.

Your home loan eligibility assessment is based on the FOIR concept (fixed obligations to income ratio). The maximum FOIR @ 70% will be applied on your net salary for arriving the permissible obligation and existing obligation if any will be excluded for arriving at your home loan EMI .

Applicable for old tax regime & not for new tax regime
There are tax benefits for the principal amount and the interest paid on a home loan.
Principal Amount: You can avail a maximum deduction of Rs 1.5 lakh under Section 80C of the Income Tax Act. This applies to the repayment of the principal amount on your home loan.
Interest Paid on Home Loan: Section 24B of the Income Tax Act allows you to claim a deduction of up to Rs 2 lakh on the interest paid for your home loan.

Deductions	Section	Maximum Deduction (INR)	Conditions
Principal	80c	1.5 Lakh	House property should not be sold within 5 years of possession.
Interest	24b	2 Lakh	The loan must be taken for the purchase/construction of a house, and the construction must be completed within 5 years from the end of the financial year in which the loan was taken.
Stamp Duty	80c	1.5 Lakh	It can be claimed only in the year these expenses are incurred.

Here are the documents required to apply for a home loan
KYC Documents:

Two passport-size photos of the applicant/co-applicant and the guarantor.
Identity Proof – Passport/Voters ID/Driving License/PAN Card/ Aadhar Card.
Address Proof - Passport/Voters ID/Driving License/PAN Card/ Aadhar Card.
Copy of VISA, Passport, Work Permit, ID Card (Applicable for NRI customers).

Income Documents
Salaried Class (Resident)

Min 3 latest salary slips (min 6 pay slips in case monthly income is variable) / Latest Salary Certificate.
Latest 2 Years ITR with Computation/ Form 16 for the last 2 Years.
Minimum last 6 months’ bank statement with a minimum of 5 salary credits.

Business/Self Employed (Resident)

Latest two years personal ITRs supported by Computation sheet, Profit & Loss account and Balance sheet.
Proof of Business.
Last 6 months Bank account statement.

You can avail of loans for the

Construction of a new house in already owned plot
The purchase of a flat/house/villa
Purchase of land & construction

Additionally, you can avail a loan for

Repairs & renovation/extension of the home

Home Loan Balance Transfer, often called Home Refinancing, lets you move your remaining home loan amount to a different bank if they provide better repayment terms than your current bank.

The downpayment for a loan depends upon the borrower while you can avail home loan up to 100% of the project cost subject to availability of market value.