About Home Loan
Home loans are given to individuals who are interested in buying/constructing houses. It is supported by banks or financial institutions who loan a certain amount, based on the need of the individual(s). Loans can be applied for purchase, construction or improvement of homes.
Characteristic of Home Loan
- The asset i.e. your home/property is pledged as security collateral. In case of failure of payment of the loan on a timely basis, the bank/lender would be entitled to retrieve the asset.
- The loan amount varies, with minimum amount being Rs 2,00,000/-
- The repayment time period, which ranges upto 30 years, is fixed based on the amount taken as loan and includes the outstanding principal plus the interest costs.
- The principal amount and the interest together constitute the EMI (Equated Monthly Installment) of the loan.
The loan charges include registration charge, fee for processing, prepayment penalty, commitment charge and miscellaneous charges for documentation & consultation.
Types of Home Loan
There is a home loan for every requirement, take a look:
- Home Purchase Loans
- Land Purchase Loans
- Home Construction Loans
- Home Improvement Loans
- Home Conversion Loans
- Home Extension Loans
- Bridge Loans
Documents Required for Home Loan
- Duly signed and filled application form
- Passport-size photograph
- Statements of investments, if any
- Copy of plan approved for the proposed construction/extension
- Cost estimation or valuation report from the bank's (or finance company's) panel CA
- Allotment letter of housing board/NOC of the society/builder etc.
- Bank statement and salary slips
In addition to these, you will have to also submit the following documents:
- Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
- Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
- Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
How we can help?
As one of the leading loan & finance based Company in the India, Royal Finserv provides you with an unbiased platform to analyze and decide upon the available deals in the market.
As all banks and financial institutions have different criteria or specifications, it is important that you first check and analyse which ones you are eligible for. thus helping you in selecting higher loan amounts at lower EMIs, i.e. LMIs.
Eligibility Criteria of Home Loan
- As mentioned earlier, the home loan eligibility is determined by various factors including income, employment status, loan tenure and so on.
- Any Indian citizen in good standing who is salaried, self-employed or business person with regular source of income can apply for a home loan.
- The applicant should be above the age of 21 years
- Professional stability and savings history play a major role in approval of the loan
- Bad credit history would prove to be a put-off, especially anytime within 3 months prior to applying for home loan.
- For Business men and Self-employed individuals, the value of loan you are eligible for is majorly determined by the profits and turn over earned by you.