The applicant should be at least 21 years of age to be eligible for a home loan and having a regular source of income from employment or personal business. The loan must terminate before or when the applicant turns 65 years of age. The applicant should also produce at least 6 months of income proof.
The loan amount depends on a number of factors such as age, income, number of dependents, qualifications, assets and liabilities, income stability, business, profits etc. However, there are ways in which to increase loan eligibility and amount. If a spouse of fiancée is earning, applying together as co-applicants can increase 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 necessarily be co-applicants. Providing additional security like bonds, fixed deposits and LIC policies may also help in enhancing eligibility. However, the most important factor in sanctioning loans is its repayment ability. The total amount also includes registration charges, transfer charges and stamp duties.
Documents Required For Home Loan
Documents required for self-employed persons :
- Updated pass book or Xerox copy of the applicant’s statement of accounts for the past 6 months.
- A Xerox copy of the applicant’s ration card
- A profile of the applicant’s business, mentioning at least the nature of the business, client list, suppliers, employee strength, geographical strength etc.
- In the case of a business partnership, a copy of the partnership deed, 3 years Profit & Loss account, B/S, computation of income certified by a CA and an income tax return file statement for 3 years is required
- If the company applying for a loan is a Pvt. Ltd company, a remuneration certificate, the board resolution for fixing remuneration, the company’s annual report and individual IT returns for the last 3 years is required
Documents required for employed persons :
- Latest salary certificate or the original slip
- A Xerox copy of Form no. 16A (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 Xerox copy of the applicant’s updated bank pass book or a statement of the applicant’s accounts for the last 6 months
- A Xerox copy of the applicant’s voter I.D card or the applicants Company’s I.D or the applicant’s passport/ration card
- A passport size photograph of the applicant & co-applicant
Documents Required Disbursement
The loan will be sanctioned after the selection of property and submission of the required legal documents. Some time will be taken to verify documents for the safety of the applicant. The 230 A clearance of the seller and / or 371 clearance from the appropriate income tax Authorities (if applicable) is also needed. Once the above has been submitted and verified, the registration of the conveyance deed and 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.
- Loan Agreement
- Disbursement Requests
- Post-dated Cheques
- Personal Guarantors Document