Despite the economic slowdown, there has been a steadily increasing demand for real estate in India. With substantial reduction of home loan rates and repo-rate cuts, home loans have become more accessible. According to a report, there has been a surge in home loan applications by 25%-40% across cities.
It has been noticed that there has been a 200% y-o-y increase in loan disbursal during December 2020-2021 January period. It indicates that the borrowers are more inclined towards purchasing their own property. But to secure this loan variant, borrowers need to submit several essential home loan documents that will substantiate their KYC, the property they wish to purchase, income background etc.
Checklist of documents required for a home loan
Borrowers need to submit the following set of home loan documents to avail financial assistance from reputed financial institutions. Following are the list of documents required to avail the credit-
- Income proof (varies as per applicant’s profile, includes latest salary slips or Form 16 for salaried applicants, profit and loss statement, TR documents for self-employed individuals).
- Bank account statement for the last 6 months
- Passport-size photographs
- Applicants must have proof of business existence of not less than 5 years
- KYC documents (Identity and address proof)
The list mentioned above of home loan documents is indicative. Borrowers may have to provide additional documents to fulfil their home loan eligibility. Applicants must note that they need to provide a set of property documents essential for a home loan, such as a sale agreement, allotment letter and payment receipt made to the developer or agent.
Since the lenders determine the LTV only after assessing the property, it is essential for borrowers to keep the property documents ready. It will expedite the loan processing and also improve the loan eligibility.
Individuals willing to apply for a home loan extended by leading financiers can also use the home loan EMI calculator to get a fair idea about the suitable loan amount and the EMIs payable. This will further help individuals to plan their finances efficiently.
Apart from providing essential home loan documents, potential borrowers need to meet certain eligibility parameters, including age, job stability, income status, property value etc. Both salaried and self-employed individuals can avail these advances by meeting home loan eligibility requirements.
Eligibility criteria for a home loan
Reputed financiers keep the home loan eligibility parameters flexible to enhance credit accessibility to borrowers. Let’s look at the eligibility for self-employed and salaried individuals below and apply based on your profile.
For self-employed
The housing loan eligibility requirements for self-employed include-
- Applicants must be a resident of India
- They must be within the age bracket of 25-70 years
- The borrower must be self-employed with a business expansion of more than 5 years with the present enterprise
For salaried individuals
The home loan requirements for salaried individuals include-
- An applicant must be within the age bracket of 23-62 years
- Borrowers should have a minimum of 3 years of work experience
- An applicant must have a stable source of salaried income
- He/ She must be a resident of India
Note: The eligibility parameters mentioned above are indicative. Lenders may ask to fulfil additional eligibility requirements.
To maximise the home loan advantages such as longer loan tenor, tax benefits, borrowers need to do timely repayment and proper financial planning. Along with the benefits, existing borrowers can also avail lucrative pre-approved offers extended by reputed financiers to accelerate and simplify loan application process. These offers are available on a wide range of financial products such as loan against property, home loan etc. One can check his/her pre-approved offer by providing his/her name and contact number.
Thus, producing necessary home loan documents and meeting eligibility parameters both are equally important for quick loan approval. Any discrepancy in documents submission can lead to the rejection of the loan application.