Documents Required For Home Loan
A home loan is a secured and financial product that is obtained to purchase a property by banks or housing finance companies. Home loans to help you buy or construct your dream home.
KYC Documents for Home Loan:
- Photo Id Proof (Any One Required):
- - Passport
- - PAN card
- - Driving License
- - Voters ID Card
Residence Proof (Any One Required):
- - Electricity Bill
- - Ration Card
- - Telephone Bill
- - Employment Letter
- - Passbook or Bank Statement with address
Property Documents Required for Home Loan:
- - Original documents of property
- - Report from lawyer as per standard format
- - Sale Agreement of property
- - Receipts of advance payments for flat purchase
- - Detailed estimate of construction cost
Note:The banks have the right to ask for any document for the loan sanctioning and verification process.
Documents Required for Loan Guarantor:
- - Liabilities Statement and Personal Assets
- - 2 photographs passport sized
- - Identify proof
- - Residence proof
- - Proof of business address
- - Signature identification
Income Proof documents for home loan:
- Salary slips
- Latest Form-16 and IT returns
- Bank statement
Click here to get Home Loan EMI
Home Loan Eligibility Criteria
Anyone can apply for a home loan, you need to meet the below criteria
- Nationality: Resident Indian
- Age: 21 to 65 years
- Income: A stable and regular income source
- Employement: Salaried employees, self-employed individuals, and business owners are eligible
- Credit Score: A CIBIL score of 750 or above improves your chances of approval
FAQs About Home Loan
What is a Home loan?
Home loan used to buy a new home, under-construction or a ready property. The home loan is given at an interest rate and you can choose a repayment period to pay back the amount through equated monthly installments (EMI). Interest rates can be fixed or floating depending on the bank.
What is the formula to calculate Home loan EMI?
The formula to calculate EMI is:
E = [P x R x (1+R) ^N] / [(1+R) ^N-1]
E = EMI Amount
P = Principal loan amount
N = Loan tenure
R = Interest rate
What is the minimum tenure and maximum tenure for a home loan?
Home loan for a minimum tenure of 5 years and a maximum of 30 years.
When does my home loan EMIs start?
EMIs start after the entire home loan is disbursed. Example: If your loan sanction date is 1st of a month and full disbursement date is 15th of a month then first EMI date typically 5th of the next month.
How to change my Home Loan EMI date?
Changing your Home Loan EMI date, visiting the nearest branch, or using the bank's online customer portal.
What are the benefits of a home loan EMI calculator?
A quick, easy and simple tool to determine your Home Loan EMI based on the loan amount, interest rate, and tenure.
It gives exact results for your monthly installment amount, which helps in better financial planning.
Change the loan parameters (amount, duration and interest rate) and observe the impact on your EMI amount.
The Home Loan EMI calculator online is available 24/7, to get immediate results without having to visit a bank branch.
What is the maximum home loan amount that I can obtain?
You can get up to 80-90% of the property's value and the remaining 10-20% is a down payment made by you. Your higher credit score 750+ can increase your eligibility for a higher loan amount. If you have other loans like: personal or vehicle loans, it may reduce the loan amount you are eligible for.
What are the tax benefits on my housing loan?
You can get tax benefits on repayment of the principal and interest components of your Home Loan as per sections 80C, 24(b) and 80EEA of the Income Tax Act, 1961. Since the benefits may vary each year, please consult your chartered accountant or tax expert for the latest information.
Can I reduce the tenure of a home loan after taking it?
Yes, you can reduce the tenure of a home loan after taking it by paying higher EMI payments. Most lenders allow adjusting EMI amount during the loan tenure, depending on your repayment capacity.
Can I transfer my home loan balance from one bank to another bank?
Yes, you can transfer your loan to another bank offering a lower interest rate and negotiate for a shorter tenure.
Do I need a home loan guarantor?
No, there is no need to have a guarantor if your profile matches with eligibility criteria. Home Loan Guarantor is required when an applicant has a weak financial standing.
Is taking home loan insurance mandatory?
No. Home loan insurance is not mandatory. However, it is advisable that you buy insurance to protect your family from loan liability during unforeseen circumstances.