Home Loan
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Home Loan Overview
Home loan is a secured loan that execute be availed because buying/ developing a residential property. You are just a few clicks outdoors from the best Home Loan offer between your city. Planning according to invest into your dream home? Choose from the superior domestic mortgage offers for easy financing. Whether you want in accordance with buy a home or construct that beside scratch, you can be brought access to funds that may make it a reality.
Types of Home Loan
Some common types of home loans available in India are:
- Home loan for purchase of a flat in an apartment complex: Banks finance their customers to buy flats in residential complexes. Here you have the concept of an Undivided Share (UDS) in the land.
- Home loan for purchase of an individual house: This is similar to the type of Home Loan described above however there is no concept of ownership of UDS. The entire land belongs to the borrower. Naturally, such houses have a better resale value.
- Home loan for purchase of land/plot: Banks finance their customers for the purchase of vacant plot or land for subsequent construction of house. Usually, banks stipulate that the construction of the house should begin within one year of purchase of land for the loan to be treated as a home loan.
- Home loan for construction of a house on own land/land: You can avail a loan for constructing your house on your land. Banks have their methods of determining the cost of construction. Naturally, you need to obtain the requisite permission from the local municipal authorities for constructing your house on the land. You need to have an approved plan as well.
- Home loan for home improvement/extension: You can approach a bank for financing home improvement or for extending the house. In the latter case, you need to have the requisite approvals and plans in place.
- Home loan balance transfer: This facility allows you to switch over your Home Loan from one bank to the other. If you have a high-interest Home Loan, availing this facility can be useful. You could transfer your outstanding loan amount to another lender at low interest rate, thus saving on interest cost.
Home Loan Documents Required
Every customer has to satisfy the Know Your Customer (KYC) norms stipulated by RBI. You have to provide the documents relating to your KYC, employment, business, and income.
Identity Proof
- PAN Card
- Aadhar Card
- Voter ID
- Driving Licence
- Passport
Address Proof
- Registered Rent agreement
- Aadhar Card
- Driving License
- Lease agreement
- Passport
- Latest Gas or electricity bill
Other documents:
- Loan application form duly filled in
- Photographs
- Signature Proof
Property documents:- Copies of all property documents that can establish the chain of ownership for the past 30 years.
- Encumbrance certificate for 30 years
- Property tax paid receipt in case you reside in the property being mortgaged (usually when you apply for Home Loan Balance Transfer).
Income Proof Documents:
- Salary slips for the last 6 months in case you are a salaried employee (In addition, you can provide IT returns for the past 3 years along with Form 16).
- IT returns for the past 3 years in case you are self-employed (Some banks accept 2 years IT returns as well).
- Statement of A/c for the past 1 year where your salary is credited (in case of salaried people).
- Profit and Loss statement and Balance sheet for the last 2 years in case of self-employed persons.
- Sales tax, GST registration certificates, if applicable.
- Partnership deed in case of partnership firms (if the applicant is one of the partners).
- Certificate of Incorporation in case of limited companies(if the applicant is one of the directors).
Documents Required from Non-Resident Indians (NRIs) Applicants
- Employer identity card
- Valid passport and visa (attested copy)
- Address proof with the current overseas address
- Copy of Continuous Discharge Certificate (CDC) for merchant navy employees.
- PIO card issued by Government of India (for PIOs)
- Documents must be attested by FOs/Rep. Offices or Overseas Notary Public or Indian Embassy/Consulate or officials of Branch/Sourcing outfits based in India.
- Home loan application – completed and duly filled
- 3 passport size photographs
- Identity proof (any one): PAN/ Passport/Driving License/Voter ID Card
- Residence proof (any one): Recent copy of Utility Bills/Piped Gas Bill/Passport/Driving License/Aadhar Card.
Income Proof Documents for NRI
- For Salaried
- Valid work permit
- Employment contract with an English translation (if it’s in another language) duly attested by employer/consulate/Indian foreign office/Embassy.
- Last 3 months’ salary certificate or salary slips
- Last 6 months’ bank statements showing salary credit
- Latest salary certificate or salary slip in original
- Last year’s Individual Tax Return (duly acknowledged copy) except for NRIs/PIOs located in Middle East countries & Merchant Navy employees.
- For Self-employed
- Business address proof
- Income proof in case of self-employed professionals/businessmen.
- Last 2 years’ balance sheet and P&L accounts (audited/C.A. certified).
- Last 2 years’ Individual Tax Return except for NRIs/PIOs located in Middle East countries
- Last 6 months’ bank statements of overseas account(s) in the name of individual as well as company/unit.