• Home Loan in India

Everyone in this world dreams to have a house of its own. But not all have the financial strength to build with its own money. This is when the home loan is required. Loan is borrowing money from an institution for a specific period of time with basic rate of interest. Taking loan as a source of finance for building a house is very common and all over the nation.

Buying a house is an important decision and this bears a lot cost for a good house. It starts right from construction to painting of the house and for all these expenses it is necessary to take home loans for your financial assistance. This has become the compulsory income of most of the banks.

Banks and other individual corporations, or other non-banking financial companies provide you the loan, but it is not as easy as it seems to be as the documentation and the approval of loans take a lot of time. Kanoonvala has the best team who will assist in providing you the loans.

Documents Needed

  1. Application form duly filled and attested along with two passport size photographs.
  2. ID proof of the applicant. Example:-Voter ID, AADHAR Card, Pan card, driving license
  3. The address proof of the applicant that entails electricity Bill, telephone bill, Passport.
  4. The bank account statement detailing the transactions of last 6 months
  5. Business proof of the non-salaried individuals.
  6. A statement that details personal assets and liabilities
  7. Identification of signature from current banks the applicant has accounts.
As for the guarantor, the following documents will be required

  1. ID proof and address proof
  2. 2 passport sized photographs
  3. The Proof of business or employment.
  4. A statement that details personal assets and liabilities
  5. Identification of signature from current banks
  6. Identification of signature from current banks that the guarantor has accounts in.
Documents needed for a salaried person

ITR or form 16 of the last 2 years.

Documents for a self-employed professional

  1. A challan that signifies that you have indeed paid your taxes
  2. The assessment orders or ITRs for the last three years.

Types of Home Loans

Home Purchase Loans:This is one of the most used terms when it comes to Home loans. This is the type of home loan that is availed to the person who wants to purchase a house. The major banks and the Non-Banking Financial Companies issues this kind of major loans

Home Loan for construction:Not every one wishes to buy a house which is pre-built. Some people want to construct the house as they have designed with their imagination. But construction of a house takes time as well as a lot of money. The loans that are granted for the construction of the house is different, you need to give a wild guess on how much loan will be needed for the construction or the land.

Plot loans:These are the loans that are availed to buy a plot of land.

Home extension/revocation Loan:This loan is granted to the person who wants to make change in the existing property.

Home Conversion loan:this loan is availed if the lender has to change the house. Suppose you have bought a house, but now you are changing your residence to a new house; to assist the change, this loan can be provided so that you can transfer the loan to the new house.

NRI Home loans:This loan is granted to the person who wishes to purchase a property in the country and he lives abroad. These are special type of home loans that are granted only to the NRIs.

Stamp Duty Loans:It is the loan on the stamp duty charges that incur while you are purchasing a property.

Bridged Loans:If the mortgage is an option for you, you can apply for bridges loans. These loans have a time period of 2 years max and within that period of time, the house will be mortgaged.

Eligibility Conditions

The minimum age of the home loan applicant should be 21 years of age and the maximum age should be 60 years old

  • AgeThe minimum age of the home loan application is 21 years of age. However, you should be able to repay the loan before you are 60 or 65 years old.
  • Employment
    1. The loan applicant should either be self-employed or a salaried individual.
    2. The loan applicant should have been in the employment for at least 3 years and should have had the most recent employment for at least 1 year.
  • IncomeThe home loan applicant should have the minimum income annually as of 5 – 7 lakhs are the only ones that are eligible for home loans.
  • ResidenceThe applicant should have had a stable residence for at least 1 year. This criterion is to tell the financial institutions about your financial standing.
  • Credit RatingA good credit score is a good eligibility factor. To that end, your credit score is a good way to find out the financial standing of the applicant.
  • Parallel Debt ChannelsWhile the institutes are issuing loans to the applicant, they also check the current credit balance of that applicant. They check to see if there are any current Loans in progress and if they do, are they able to pay it properly.