Home Loan:A home / house loan means a sum of money borrowed from bank or financial institution to purchase a house at a certain rate of interest to be paid with the EMI every month. The property is taken as a security by the money lending company for the home loan. The property can either be commercial or personal in nature. When the borrower cannot pay the dues, the lender will possess all the legal rights to recover the outstanding loan amount by sale of the property in question.
Purpose: For construction / purchase / accompaniment / renovation of residential house / flat including the purchase of land and construction.
Looking:
- Attractive interest rates to make your Home Loans affordable
- Personalized repayment options to suit your needs.
- No hidden charges.
- Expert legal and technical analysis to help make the right home buying decision.
Age Eligibility:Salaried persons, persons engaged in business / professionals and self-employed persons.Banks or financial institutions are considering a limit of age 65 for salaried home loan applicants, and 70 for self-employed home loan applicants.
Security:papers mortgage forHouse / Flat / Land
Repayment:In convenient equated monthly installmentsup to 25 years or borrow attaining age of 70 years whichever is earlier (subject to conditions).
Processing Charges:Nominal processing fee of 0.50% (Min Rs.500/- and Max. Rs.10,000/-) is charged. Charge / waiver can vary according to internal guideline of Banks or financial institutions.
Documents details:
| Salaried Employees | Self Employed/Professionals |
| Duly filled Application Form with Photograph | Duly filled Application Form with Photograph |
| Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority) | Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority) |
| Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority) | Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority) |
| Education Qualifications – Latest Degree | Education Qualifications – Latest Degree (for professionals) |
| Latest Salary-slips for 3 months | Certificate & Proof of business existence along with Business Profile |
| Form 16 for last 2 years | Last 3 years Income Tax returns (self and business) with Profit & Loss Account & Balance Sheets duly certified/audited by a Chartered Accountant |
| Last 6 months Bank Statements(salary account) | Last 12 months Bank Account Statements (self & business) |
| Processing Fee Cheque in favor of Banks or financial institutions. | Processing Fee Cheque in favor of Banks or financial institutions |
| Photocopy of Title Documents of the Property, Approved Plan | Photocopy of Title Documents of the Property, Approved Plan etc. |
Home Loan approval process by Banks or financial institutions:
Assessment: Banks or financial institutions will determine that you can afford the loan repayments. credit team will conduct income verification and validate the accuracy of the information you have provided
A credit check will be carried out to disclose the credit history; in this case banks or financial as a lender will obtain a credit report that will show the following details:
- Personal details such as: Name, Residential Addresses, Date of Birth and PAN card number
- Records of some recent credit accounts
- Overdue Accounts (Defaults) which may have been listed against your name, including an indicator on whether the default amount has been paid or not
As your credit history plays an important part in the home loan application process, it is always advisable to clarify and resolve any credit related issues before lodging your loan application.
Conditional Loan Sanction:Considering there are no major issues with your income verification and credit checks, Banks will provide conditional sanction for your loan. This means that bank will issue a formal Letter of Offer cum acceptance favoring all the applicants to the loan. Bank recommend all applicants read this document carefully, sign and return it to us, making sure the information is correct and that everyone understands all the terms and conditions.
Security Assessment:Based on the technical and legal assessment report, the officer will determine if the property is suitable for mortgage lending purposes.
- Technical Assessment: A qualified technical officer will conduct a valuation on the property you intend to purchase and any property that will be used as security.
- Legal Assessment: A qualified lawyer will examine the property documents i.e. chain of agreements/title etc to determine if the property documents provided by you are conducive for lending.
Loan Disbursement:Once you have formally accepted bank’s loan offer, a thorough scrutiny of all of the above steps is conducted by bank’s Operations Team to ensure accuracy of the entire process. Once the final check is completed, you need to submit the processing fees. Clearance of the processing fees cheque, the disbursement cheque for the approved amount is prepared by the Operations Manager and it is handed over to customer.Upon receiving the funds will start paying first home loan repayment, usually one month after the disbursement date.
Checklist of Documents Required for Home Loan for bank or financial institution:
Documents / Formalities:
- Application Form – fully filled and signed.
- Latest Photograph.
- Age, ID and Residence Proof (PAN card / Passport & Latest telephone bill / rent agreement).
- Three months’ salary slips – to be stamped by HR/ accounts
- Updated 6 months bank statement for Salary accounts(all accounts)
- Salary Certificate and Form No.16 (in case of salaried persons)
- Two years ITR with computation of Income
- Letter of yearly bonus (if any and if required)
- IT Returns filed for the past two years (in case of non-salaried persons)
- A brief note on the nature of business, year of establishment, type of organization, etc., (in case of self-employed)
- Balance Sheet and P&L Account for the past three years (in case of self-employed)
- Copy of sanction letter of loans and Track records existing loans (if any)
- Offer Letter / Increment Letter of the present & previous organization
- Copy of the Offer Letter of previous employer (if employment less than one year in present organization)
- Highest qualification certificate
- Copy of all property papers along with Sanction Plan, (if property identified).
- Sale deed / Agreement for Sale
- Copy of the approved plan for the proposed construction / extension
- Detailed cost estimate / valuation report from Bank’s Panel Chartered Engineer / Architect
- Allotment letter of Co-operative Housing Society / Apartment Owners’ Association / Housing Board / NOC from the Society / Association / Builders / Housing Board
- Property Tax paid receipt / Electricity Bills.
