Home Loan

Documents required for Home Loan:

• Loan Application
• Passport Size photograph
• Proof of Identification – Driving License/Ration Card/Passport/PAN Card/Voter ID
• Proof of Age – Birth Certificate/PAN Card/10th Class Mark sheet/Passport/Driving License.
• Address Proof – Voter ID/Aadhar Card/Ration Card/Passport/Utility Bill/LIC Policy
• Income Document – Form 16, Salary Slip, IT Returns for last 3 years.

Property Document

• Sale deed, agreement of sale with the builder (original copy)
• Land and building tax paid receipts, location sketch of the property certified by the revenue authorities, possession certificate.
• Letter of allotment given by the Housing Board/Society/Private builder.
• Original receipts of the advance payments that are made towards the purchase of flat.
• An approved copy of the building plan (key plan/floor plan in case of purchase of flats).
• Original of the land tax paid receipt and possession certificate as issued by the revenue authority.
• Original No objection certificate (NOC) from the housing society or builder.
• Detailed estimate of the cost of construction of house.
• Letter from the builder/society/housing board, stating their account number and name of their bankers for the remittance of installments.

Types of Home Loans in India

• Loan for the Purchase of Land – Several Banks and Financial institutions provides loans for the purchase of land. Individual can purchase the land for future construction or for resale. Purchase of Land can be financed up to 90% of the cost of the land.
• Loans for Home Purchase – This is the most popular type of loan to purchase the new or pre-owned home. Around 85% is financed by the banks.
• Loans for Construction of a House – This loan is provided for the construction of house. In case the cost of land also to be included in the loan amount then plot must have been purchased within one year. This amount can be disbursed in full at one time or in instalments.
• House Expansion or Extension Loans – This loan is given for the construction of additional part to the existing home. It also includes the renovation of the house.
• Home Conversion Loans
• Loans for Home Improvement – Under this head loan is given for the renovation and repairing work in the home.
• Balance Transfer Home Loans – When individual is not satisfied with the current lending institution, he can apply for the transfer of his balance loan amount from the existing bank to the new bank.
• NRI Home Loans – This loan is given to the NRIs to enable them to purchase the house property in India. Generally all banks are giving this loan.
• Bridged Loans – These are the short tenure loan up to 2years only. This loan is provided to the existing home owners to purchase a new house until the old house is sold.
• Stamp Duty Loans – This loan is granted to pay the stamp duty charges at the time of purchase. It is an uncommon type of loan in India.

Top Banks Home Loan & Interest Rates in India 2018