A home loan is one of the most straightforward loans you can apply for when you wish to construct or purchase a house. Since house purchase or construction cost can be immense, a home loan enables you to achieve your housing dream seamlessly. So, go through the complete post to know in details: Home Loan – The Complete Guide to Eligibility and Documents Required

Borrowers often use a home loan eligibility calculator to get information about their eligibility.

Read this article to know about the factors which affect home loan eligibilityand the documents you need to submit along with the home loan application.

Home Loan – Eligibility Criteria

Any salaried or self-employed professional can apply for a home loan.

Here is a list of basic home loan eligibility criteria that every home loan applicant needs to fulfil:

1. You must be a citizen of the Indian Union.
2. Your age must be between 21 and 60 (65 for self-employed).
3. If you are a salaried professional, you need to have an experience of three years, of which a minimum of one year has to be in the current organisation.
4. If you are self-employed, your business must be at least five years old. Moreover, you need to have a consistent track record of being profitable.

Besides the above-mentioned home loan eligibilitycriteria, you also need to satisfy the following parameters:

1. Credit Score – Lenders prefer if the borrower has a credit score of 750 and above. You may still apply for a home loan if the score is below 750. However, in such a situation, you might have to shell out something extra as the interest. Check a home loan eligibility calculator to discover the EMI amount and total liability.
2. Monthly Income – Lenders often have minimum income criteria for accepting loan applications. The criteria might be different for metro and non-metro cities. It is wise to use a home loan eligibility calculator to check the latest terms.
3. Property Location – If your property is in a well-connected locality, you may apply for a higher loan amount. Moreover, the lender might offer you a discounted interest rate if the property’s resale value is exceptionally high.

Home Loan – Documents Required 

Now that you know about the home loan eligibility criteria, let us discover documents required to avail home loan.

1. Application Form – You can download the application form online or collect it from a branch. You need to attach a passport size photograph with the application form.
2. Age Proof – Birth Certificate, PAN Card, Passport, or any other government-issued certificate certifying your age serves as a valid age proof.
3. Residence Proof – Documents like Passport, Driving License, Telephone Bill, Ration Card, or Election Card serves as valid residence proof.
4. Educational Qualification – You may also need to furnish a photocopy of your last degree certificate.
5. Income Proof – If you are a salaried professional, your appointment letter and salary slips will act as income proof. For self-employed professionals, the business statement and profit & loss statement serves as income proof. Moreover, you may need to submit three years’ income tax returns or Form 16.
6. Bank Statement – You need to submit a 6-months’ bank statement (12 months for self-employed professionals)
7. Processing Fee Cheque and Property Documents – You may use a home loan eligibility calculator to figure out the loan costs and know about the processing fee. You will also need to submit original property papers with the loan application.

Conclusion

Use a home loan eligibility calculator to determine the loan expenses before applying for the loan. Keep the eligibility criteria and documents required in mind to expedite home loan approval.

So, this is all about Home Loan – The Complete Guide to Eligibility and Documents Required

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