As of March 2019, the growth of the home loan market in India stood at Rs.11.5 trillion. Over the last 6 years, the market has witnessed a CAGR of 16%.
Factors like increase in income, demand for affordable and urban housing segments are responsible for driving the demand for home loans in India.
Several lending institutions have tapped into this housing demand and made the process of availing financial assistance simpler. Nonetheless, applicants are still required to meet the basic eligibility and submit the essential documents required for a home loan. Consequently, being aware of all such formalities in due advance is a must to streamline the process better.
Besides the application form, these are the documents an applicant needs to submit to avail a housing loan.
Property related documents
- Sales deed, agreement of sale, etc.
- NOC from builder or housing society.
- An estimate of construction cost.
- Occupancy certificate.
- Possession certificate.
- Land tax certificate.
- Bank account statement highlighting the payment made to the builder or seller.
Documents that serve as proof of identity
- Aadhaar card.
- PAN card.
- Passport.
- Voter ID.
- Driving license.
Documents that serve as proof of address
- Electricity bills.
- Telephone bills.
- KYC documents stating the permanent address
Other than these, applicants should also make sure to find out a specific set of home loan documents required for self-employed individuals and salaried personnel.
For instance, some financial institutions require self-employed applicants to submits these documents along with the ones mentioned above –
- Proof of business.
- Audited financial statements.
- Bank account statements.
On the other hand, documents required for a home loan for salaried individuals include –
- Salary slips.
- Form 16.
- Latest bank statements.
They also extend pre-approved offers to their customers to make the entire process seamless. Check your pre-approved offer in a few seconds by providing your name and contact details.
Nonetheless, before applicants proceed to find the required set of documents, they should make it a point to find out their home loan eligibility.
Eligibility Criteria
Individuals who would meet these following criteria would be deemed eligible to avail a home loan –
- Resident Indian.
- Salaried applicants should be between the age of 23 and 62 years.
- Self-employed applicants should be between the age of 25 and 70 years.
- Must have a CIBIL score of at least 750.
- Must have a stable source of income.
- Salaried applicants should have work experience of at least 3 years.
- Self-employed applicants must have a business vintage of at least years.
It is noteworthy that the general home loan eligibility criteria may differ from one financial institution to another. Also, depending upon their credit history and monthly income, applicants may have to meet additional terms and clauses to fit the eligibility.
Additionally, salaried and self-employed individuals are required to submit a different set of documents; their home loan eligibility criteria also tend to vary. Therefore, applicants must look up home loan eligibility criteria for salaried individuals and self-employed individuals for more clarity.
Things to consider
Individuals must also factor in the features that accompany their choice of housing loan to use it in the most fruitful ways. To elaborate, individuals must pay attention to features like –
- A reasonable rate of interest.
- Flexible loan tenor.
- Easy repayment options.
- Part-payment and foreclosure facility.
- Balance transfer facility.
- Top-up facility.
A loan option which comes with these features often proves to be an effective means of financial assistance. To further make a fruitful choice, individuals should consider comparing these crucial features offered by several HFCs to secure the best bargain.
Hence, it can be said that individuals who intend to avail credit to purchase or construct a house must keep the documents required for a home loan ready. Also, they should check their eligibility beforehand and compare the associated features accordingly.
Priya Bagga connects online brands to their target audiences for the perfect marketing experience. At the University of California, she learned the importance of applying classic marketing techniques to modern brand strategies from experts in the field, including her Communications professor, Dr. Rohan Mehta. Recently she finished a research paper on customer conversion and participated in a group project on improving SEO.