Home loan for a dream house

With the rise in earnings per household, the dream of having one’s own home has become a possibility now. Are just the savings sufficient to buy a dream home? The Banks and Non Banking Financial Companies (NBFC’s) have made this dream possible. But there are certain eligibility criteria to be met for procuring a loan. Says Gaurav Gaur, CEO and Founder, mudrahome.com.

Let us look at the basic questions one might have before applying for a home loan –

Does Bank give a 100% home loan?

As per the policies Banks and NBFCs can only grant 80-85% of the value of the property/home as the loan amount. No bank or NBFC’S would give you 100% loan amount.

Is there any Age criteria?

The minimum age of the applicant for applying for loan should be at least 24 years. The maximum can be up to 65 years if they are self- employed and if salaried is 60 years. A salaried person should have at least 2 years of work experience.

How much bank loan can I get for buying a home?

As per Reserve Bank of India (RBI), a person can get a loan which is maximum of 60 times of his salary, however most of the Banks give 50-60% only. Suppose your Salary is Rs. 15000 Rs then you are eligible for a loan of Rs. 7-9 Lakhs Rupees, the Bank counts for ‘in hand’ salary only.

Some Top Home Loan Providers In India

HDFC Home loans

Reliance Home Finance Home Loan

HSBC Bank Home Loan

ICICI Bank Home Loan

India Infoline Finance Limited Home Loan

Axis Bank Home Loan

Mudra Home Loan

State Bank of India Home Loan

Sundaram Finance Home Loan

PNB Housing Home Loan….. to name a few.

Eligibility Criteria for a Home Loan –

For applying for home loan in India, a person should be-

• An Indian citizen
• Within age limit of 24 – 70 years
• Salaried or Self-employed
• The Co-applicants can be your spouse, partnership firms, or even a private limited company.

Documents required for applying for Home Loan:

Identity Proof

1. PAN Card (it is mandatory) any one documents from the list below-
2. Voter Card
3. Aadhaar Card
4. Driving License
5. Photo Identity card issued by Govt. body
6. Valid Passport
7. Photo Credit Card
8. Letter along with a photograph from any recognized public authority / servant verifying the identity of the customer (it should not be more than 30 days old)

Address Proof

It can be any one of the below documents:

1. Voter Card
2. Aadhar Card
3. Letter from a recognized public authority / servant to verify the identity and residence of the customer
4. Latest Utility bill
5. Valid Passport
6. Rent agreement
7. Bank Statements with valid address of borrowers only from a commercial nationalized bank
8. Recent Credit Card Statement not older than 3 months
9. Residence address Certificate /letter by employer on company letterhead
10. Copy of Sale Deed of the Property.
11. Receipt of Municipal or Property tax
12. Life Insurance Policy
13. Post office saving bank account statement
14. Letter from a recognized public authority/ servant verifying the residence address

Additional reading:How Home Loans Work In India

Proof of income

All these documents given below are required

(For a salaried person)

1. Last 2 months salary slip
2. Last 6 months bank statement of salaried account
3. Latest Form 16 / ITR

(For a self employed person)

1. Last 3 years Income tax returns along with computation of income attested by a Chartered Accountant
2. Firm’s Balance Sheet and Profit & Loss account of last 2 years – duly attested by a Chartered Accountant

Proof of Age:

1. PAN card
2. Birth certificate
3. Bank passbook
4. Valid Passport
5. Mark sheet of 10th class.
6. Driving license

Property Documents

All the documents given below are required:

1. Copy of complete chain documents of the property (NOC from housing society/builder, bank account with name of builder/society)
2. Copy of Agreement of sale with builder, sale deed.
3. Copy of the Allotment Letter and/or Buyer Agreement.

Copy of Receipt/(s) of payment/(s) made to the developer (land & building tax receipts and advance payments made for the property).