Home Loan

To be eligible for a home loan, the applicant must –

• Be at least 21 years of age
• Have a regular salaried income or income under business and profession.
• Possesses income statement of preceding 6 months

The loan must be repaid-On or before the applicant turning 65 years of age

Loan Amount

The loan amount depends on various factors like age, income, number of dependents, qualifications, assets and liabilities, income stability, business, profits, etc.
However, there are ways in which the eligibility to obtain loan and the loan amount can be increased. If a spouse or fiancée is earning, applying together as co-applicants ,it can boast the chances of a larger loan amount. In such cases, proof of marriage must be submitted. On the contrary, if there are any co-owners, they must mandatorily be co-applicants. Providing additional security like bonds, fixed deposits and LIC policies may help in enhancing the eligibility to obtain loan.. However, the most important factor in sanctioning loans is the ability to repay. The total cost includes registration charges, transfer charges and stamp duties.

Documents required

Documents required for self-employed persons:

• Updated pass book or photocopy copy of the applicant’s statement of accounts for the past 6 months
• A photocopy copy of the applicant’s ration card
• A profile of the applicant’s business mentioning the nature of business, client list, suppliers, employee strength, geographical spread, etc.

In case of a business partnership

• Updated pass book or photocopy copy of the applicant’s statement of accounts for the past 6 months
• A photocopy copy of the applicant’s ration card
• A profile of the applicant’s business mentioning the nature of business, client list, suppliers, employee strength, geographical spread, etc.

In the case of a proprietor or professional –

• 3 years Profit & Loss a/c
• Balance Sheet
• Income Computation certified by a Practicing Chartered Accountant
• Income Tax Return file statement for 3 years is required.

If the company applying for a loan is a Private Limited Company –

• A remuneration certificate, the board resolution for fixing remuneration
• Annual report of the company
• Assessee’s income tax returns of preceding 3 financial year

 

Documents required for employed persons:

• Latest salary certificate or the original slip
• A photocopy copy of Form no.16 A (TDS Form) from the applicant’s employer
• The original certificate from the applicant’s employer for any other allowances that are not reflected in the applicant’s salary slip
• A photocopy copy of the applicant’s updated bank pass book or a statement of the applicant’s accounts for past 6 months
• A photocopy copy of the applicant’s voter I.D. card or the applicant’s Company’s I.D. or the applicant’s passport/ ration card
• A passport size photograph of the applicant & co-applicant

Disbursement

The loan will be sanctioned after the selection of property and submission of the required legal documents. The process might take some time verification and authentication purposes. The 230 A Clearance of the seller and / or 37I clearance from the appropriate income tax authorities (if applicable) is also required. Once the above has been submitted and verified, the registration of the conveyance deed, investment of the applicant’s own contribution and the loan amount will be disbursed by the bank. The disbursement will be in favor of the builder.
Documents required for disbursement:

• Loan agreements
• Disbursement requests
• Post-dated cheques
• Personal guarantor’s documents