Home Loans
A Home Loan is a secured loan that is obtained to purchase a property by offering the same as security/collateral. One can avail home loan for longer tenure and low interest rates. We can repay the same through Equated Monthly Instalments (EMI’s).
There are lot of benefits like Income Tax benefits, part payment facility and pre-payment facility without any pre-payment. Can avail Top up home loan for home improvement by paying little higher rates than regular home loans.
Housing loan can be availed by Salaried or Self-Employed individuals.
Types of Home loans
Home Purchase Loan: This is the loan availed for purchase of Flat, House or Villa either new or Old.
Land/Plot purchase Loan and Construction Loan: We can purchase open Plot in any approved layout and construct house on the same by availing plot purchase & construction loan. (Composite loan)
Home Construction Loan: If we already have open plot/ Land, we can avail loan for construction of House, such loans are construction loan.
Home Improvement Loan: If we want to renovate or repair existing flat or house, we can avail Home Improvement Loan.
Joint Home Loan: In case want to avail loan by 2 or more family members they can avail Joint Home loan by considering income of all the members. This will result in maximizing the loan amount. This loan can be availed by close family members only such as Father, Mother, Son, Daughter, Brother, Spouse etc.,
Home Extension Loan: Taken for construction of an additional floor or extension of the existing building. The approval should be in place for availing the home extension Loan.
Top-up Home Loan: Top-up home loan is the additional loan on the existing home loan. The purpose of the loan may be for general purposes. However, the rate of interest will be slightly higher side than the normal home loan rate.
Home Loan Balance Transfer: Home loan Balance transfer is transfer of existing home loan outstanding to new bank or financial institutions to enjoy better terms and conditions lower interest rate change in tenor etc.,
The documents required to apply for a home loan are the same across all banks and financial institutions. However, home loan documents required may vary across lenders based on your home loan type, and property type, etc., Here’s the list of key loan documents that one will need to submit for availing Home Loan.
Documents Required for Home Loan
1. Duly filled Application form
2. ID Proof ( Any one of the below)
• PAN Card / Passport / Aadhaar Card / Voter’s ID Card / Driving License
3. Residence Proof ( Any one of the below)
• Passport / Aadhaar Card / Voter’s ID Card / Driving License
• Utility bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill)
4. Proof of Income for Salaried:
• Form 16
• Pay slip of last 6 months
• Company ID Card
• Appointment letter and previous employment proof
• Last 1 year Bank statement ( Salary Credited)
5. Proof of Income for Self Employed:
• Income Tax Returns (ITR) of last 3 years
• Balance Sheet and Profit & Loss Account Statement of the Company/Firm (duly attested by a C.A.)
• Business License Details (or any other equivalent document)
• The license of Professional Practice (For Doctors, Consultants, etc.)
• Registration Certificate of Establishment (For Shops, Factories & Other Establishments)
• Proof of Business Address
• 1 Year bank statement for all major operative accounts.
6. Property documents:
• Copy of Agreement of Sale
• Title Deeds and previous 30 years link documents
• Approved Plan & Proceedings by the concerned Authorities.
• Property tax – If old property
• Margin Money Receipt from Seller
• A detailed estimate of house construction by an Architect / Civil Engineer ( In case of self-construction)
• EC for a period of 30 years.
7. Other Documents:
• Passport size photographs of all the applicants / co-applicants (to be affixed on the application form and signed across)
• The details of existing loans (such as the outstanding amount, monthly instalments, purpose, remaining loan tenure, etc.) in the name of an individual or business entity (if any)
• A cheque for processing fee favouring the home loan provider
• Business Profile
• Latest Form 26 AS