QUESTIONS & ANSWERS

Frequently Asked Questions

Get answers to your queries

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	Rs. 1.5 Lakh	House property should not be sold within 5 years of possession.
Interest	24b	Rs. 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	Rs. 1.5 Lakh	It can be claimed only in the year these expenses are incurred.

You can avail of loans for:

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

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/ 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