Home Loans

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Home-Loans

Eligibility criteria for a loan

Most financial institutions would take into account the following criteria:

Salaried / self employed personnel Indian citizen / NRIs

What are the type of home loans available?

Home loans can broadly be classified in to the following:

  • Home purchase loan

This is the basic loan required at the time of purchase of a home.

  • Home improvement loan

This is given in the context of renovation or repair works of the existing home.

  • Home construction loan

This loan is given for the construction of the house.

  • Home extension loan

This is given for further extension of expansion of a already existing home.

  • Home conversion loan

This loan enables a person to transfer an existing loan amount to the loan amount of the new house.

  • Land purchase loan

This loan is available for the purchase of land.

  • Bridge loans

Such loans enable a person to finance a new home and aid in the sale of an old home.

  • Balance transfer loan

This loan enables a person to pay an existing loan and avail a new home loan at a lower interest rate.

  • Refinance loans

This loan aids in the payment of debt taken from private sources for the purchase of a new home.

What is the maximum loan amount?

Financial institutions take a number of factors into consideration before deciding on a loan amount. Typically a person is entitled to upto 85% of the total loan amount.

What are the documents required to avail a home loan?

Each housing company has its own set of documents that are required. However the basic documents are listed below:

In case of a salaried person
  • Age proof certificate
  • Residents proof certificate
  • Salary slip
  • Copy of bank account statements
In case of self-employed
  • Address Proof Certificates
  • Photo ID Proof
  • Income Tax return for the last three years
  • PL & balance sheet for last three years
  • In case of NRIs
  • Passport Copy
  • Copy of Resident Visa
  • Salary certificates
  • Bank account statements
How is the loan eligibility determined?

A loan eligibility is determined by taking into consideration various factors such as income, age, number of dependents, spouse’s income, assets, liabilities.