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Documents
Documents required in Home Loan
Generally the documents required to processing your loan application
are almost similar across all the banks; however they may differ with various
banks depending upon specific requirement etc. Following documents are required
by financial institutions to process the loan application:
- Age proof
- Address Proof
- Income proof of the
applicant & co-applicant
- Last 6 months bank statement
- Passport size
photograph of the applicant & co-applicant
In case of Salaried
- Employment certificate from the
employer
- Copies of pay slips for last few months and TDS certificate
- Latest Form 16 issued by employer Bank statements
In case of Self-employed
- Copy of audited financial statements for the last 2 years
- Copy of partnership deed if it is a partnership firm or copy of memorandum of
association and articles of association if it is a company
- Profit and loss account for the last few years
- Income tax assessment order
Types of Home Loan
There are different types of home loans available in the market to cater
borrower’s different needs.
*Home Purchase Loan: This is the basic type of a loan which has the purpose
of purchasing a new house.
*Home Improvement Loan: This type of loan is for the renovation or repair of
the home which is already bought
*Home Extension Loan: This type of loan serves the purpose when the borrower
wants to extend or expand an existing home, like adding an extra room etc.
*Home Conversion Loan: It is that loan wherein the borrower has already taken a
housing loan to finance his current home, but now wants to move to another home.
The Conversion Housing Loan helps the borrower to transfer the existing loan to
the new home which requires extra funds, so the new loan pays the previous loan
& fulfills the money required for new home.
*Bridge Loan: This type of loan helps finance the new home of the borrower
when he wants to sell the existing house, this is normally a short term loan to
the borrower & helps during the interim period when he wants to sell the old
house & want to buy a new one, It is given till the time a buyer is found for
the old house.
*Home Construction Loan: This type of loan taken when the borrower wants to
construct a new house.
*Land Purchase Loan: It is that loan which is taken to purchase a land for
construction & investment purposes.
Note:-
Following are eligible to apply for a Home Loan :
• Salaried individuals
• Self employed professionals/businessmen
You can include your spouse/parents/children as co-applicant if you require
higher eligibility subject to maximum of three applicants.
Monthly Income-
The income that we get in hand on month to month bases is said as Monthly
Income. While taking a Home Loan the Bank initially calculate on the bases of
net income that is left in our hand after deduction of all other emi’s. Home
Loan the Bank initially calculate on the bases of net income that is left in our
hand after deduction of all other emi’s.
Other EMI
Other Emi (Equally monthly installment) is the emi that we are paying to for any
other Loan.
Available Income
The income that is left in our hand after deduction of any emi amount that we
are paying for any kind of loan. Your Home Loan Eligibility Calculator will be
calculated after deduction of the EMI’s that you are paying.
Duration of Loan (Years)-
It’s one of the most important factors that one should keep in mind while taking
loan. It refers to the no. of years for which the loan has to be taken. Longer
the tenure higher will be the interest paid and lower will be amount of EMI to
be paid and vice-a-versa. It is one of the parameters which helps in comparing
the EMIs from different banks keeping it constant for relationship and easing
the judgment.Interest Rate (in percentage)Today there are many lenders in the
market. Every bank is offering loans whether it’s a nationalized bank, private
bank or foreign bank each of them is there in the show. Every bank offers
different rate of interest according to the profile of the customer. So, before
finalizing a deal one should consider deals from various banks and than come to
a conclusion. And aware of the fact that some people might mislead you by
charging high rate of interest at reducing rate and might inform the same at
flat rate of interest. So, its always advisable to check full detail with the
banks and do better comparison in respect of EMIs , Tenure and Interest Rates
and keeping tenure as constant with all the banks will ease your comparison and
will result in better analysis, finally leading to a prudent
decision.
EMI
EMI stands for equally monthly installment; you need to pay a particular amount
for the Home loan that you have taken.Eligible Loan Amount The net loan amount for which you are eligible for your Home loan is said as
Eligible Loan Amount. The loan amount that a Bank can sanction you
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