Home Loan :
Loan for purchase of Residential Property such as flats, apartments, floors, bungalows, etc. The maximum loan offered is 75% to 90% of the property value and the maximum loan tenure is 20 years for the self-employed borrower or 30 years in the case of a salaried borrower. Most banks or financial institutions require 3 years of business or employment vintage to avail of a home loan.
Type of Home Loan:
1. Home Purchase Loan (HL): Home Loan is a sum of money borrowed from a bank or any financial institution for the purchase of ready or under-construction residential property such as flats, apartments, floors, bungalows, etc.
2. Home Construction/ Extension Loan (HE): The home construction or extension loan is a sum borrowed from the bank or any financial institution for construction or extension of an already owned house such as constructing an additional floor, room or balcony, etc.
3. Home Renovation/ Improvement Loan: The home renovation or improvement loan is a sum of money borrowed from banks or any financial institution for renovation or improvement of an already owned house such as painting the house, revamping the house interior, redoing the electric wiring, etc.
4. Plot/Land Purchase & Construction Loan: The plot or Land purchase loan is a sum of money borrowed from a bank or any financial institution for the purchase of plot or land, and constructing the house on it.
5. NRI Home Loan: NRI Home loan is a sum of money borrowed from the bank or any financial institution by Non-Resident Indians for the purchase or construction of residential property in India.
Documents Required:
For any loan application, a minimum set of documents are generally required by any financial institution in order to process the application. The list of documents required are as follow:
- Identity Proof: Identity proof can include PAN card, Aadhar card, Voter ID card, Passport, etc.
- Address Proof: Address proof can include Aadhar card, Passport, Utility Bills, etc.
- Income Proof: Income proof can include ITR documents, Form 16, Salary slips, Form 26AS, and Bank statements.
- Business Existence Proof: This is usually required in the case of a self-employed borrower and can include a GST registration certificate, trade license, partnership deed, etc. In the case of a self-employed professional like CA or Doctor, a certificate of practice and degree is also required.
- Loan Details: This includes sanction letter or repayment schedule of any existing running loans along with its repayment bank account statement.
- Property Documents: This includes a complete chain of property documents like sale deed, conveyance deed, allotment letter, sale-purchase agreement, possession letter, etc., and certificate of approved sanctioned maps and plans for construction.