Get Updated With Housing Loan Procedure

With home loans available in the market, the dream to own a home has become a reality for many. There are a few important factors which are the deciding factors like, home loan eligibility criteria, the interest rate for a home loan. But to avail, the loan documentation always plays a vital role. Documents help bankers know about the borrower in a better way. As a home loan is a secured loan so you need to give a guarantor as well as you have to pledge any of your assets as collateral, for example, property papers, which makes the process a bit difficult. All this is done so that a banker can build trust in a better way.

Why documents are necessary:-

While applying for a home loan, age is important as it is a term loan, so with the documents, bankers verify the age. In a home loan, a borrower should be at the age of repayment until the loan gets over.
Financial documents determine the capacity of repayment. These documents give a clear picture of finances that a borrower is handling. For example, a bank statement will showcase the expenses and if any credit was taken recently.
A credit report is important because the score should be in an eligibility range which has been prescribed by the bank or NBFC if not the bank will reject the loan.
Monthly income statements are important proof of document as they can easily assess the repaying power.

Eligibility criteria for the salaried employee:-

A borrower should be a resident of India
A borrower should be between 23 and 62 years of age
A borrower should be a salaried individual with a work experience of 3 years or more
A borrower working in a tier 1 city should have a salary of Rs 30,000 per month and a borrower working in tier 2 city should have a salary of Rs 25,000 per month
Credit score greater or equal to 750

Eligibility criteria for self-employed:-

A borrower should be a resident of India
A borrower should be between 25-70 years of age.
A borrower should be a self-employed individual who has been doing current business for a minimum of 5 years and earning profits
Credit score greater or equal to 750

Documents required from salaried professional

Bank loan form duly filled
Address Proof- Registered Rent Agreement / electricity or telephone bills (up to 3 months old)/ Passport
Identity Proof- Aadhaar card/ Passport / Driving License / Voter ID / PAN
Income Proof- Last three months salary slips, Form 16 of last two years, and a copy of Income Tax PAN
Bank Statement- Last six months bank statement which has salaries received from your current employer

Documents Required for Self Employed– Professionals

Address Proof- Registered Rent Agreement / electricity or telephone bills (up to 3 months old)/ Passport
Identity Proof- Aadhaar card/ Passport / Driving License / Voter ID / PAN
Office Address Proof- Property Documents, electricity and telephone bills
Office Ownership Proof- Property Documents, electricity and telephone bills, Maintenance Bill.
Business Existence Proof- the Company Registration license, Shop Establishment Act, 3 years old Saral Copy
Income Proof- Latest 3 years Income Tax Returns which should have Computation of Income, Audit Report, Balance Sheet, Profit & Loss Account etc.
Bank Statement- Bank statement of the last 12 months
One coloured passport size photograph