Thinking about Home Loan

Check Available Major Housing Loan Companies who provides loans for Buying your dream home or finance your house with attractive rate of interest and Other benefits.

Basically Banks offers a home loan, and charge an interest rate. Banks will use your home/Property as security and you only completely own the home after you repay the loan amount in full. If you default on the loan, the Banks holds the right to take Charge of your home, sell it and use the proceeds to pay off your debt amount.

The Home Loan application process is simple. The first step is to find out the in which bank would like to apply for a Home Loan. Banks have different interest rates for Home Loans. U Can use aggregator websites, it is possible to compare Home Loan interest rates online and find out a bank you can apply. It is best to apply more than one bank so in that case one bank doesn't approve, you have another option in hand to support.

After Based on your documents, the bank will decides whether you are eligible for a Home Loan, Once it approves your application, the funds are disbursed to your account.

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Yes, home loan principal is part of Section 80C of the Income Tax Act. Under this section, an individual is entitled to tax deductions on the amount paid as repayment of the principal component on the housing loan. An amount up to Rs. 1.50 lakh can be claimed as tax deductions under Section 80C.

If the loan is taken jointly, then each of the loan holders can claim a deduction for home loan interest up to Rs 2 lakh each and principal repayment u/s 80C up to Rs 1.5 lakh each in their individual tax returns. To claim this deduction, they should also be co-owners of the property taken on loan.

Lenders offer home loans, not only for a house buying but also for a various other purposes. Some of the types of home loans available in the financial market as below.

• ▸ Loans for Purchase of Land
• ▸ Loan for Purchase of Residential Property
• ▸ House Expansion or Extension Loans
• ▸ Home Conversion Loans
• ▸ Loans for Home Improvement
• ▸ Bridged Loans
• ▸ Balance Transfer Home Loans
• ▸ Loans for Construction of a House
• ▸ NRI Home Loans
• ▸ Stamp Duty Loans
• ▸ House Construction

A CIBIL score range has between 300 to 900. You should ideally have a score that is closer to 900 as it helps you get better deals on Loans. Basically, a CIBIL score of 750 and above is considered as ideal by majority of lenders. You can get a loan with a CIBIL of 750 and above.

Documents For Salaried individuals for Home Loan

General list of documents required:

• ▸ Completed loan application
• ▸ 1 passport size photograph (including the one affixed in loan application)
• ▸ Proof of identification: Electoral ID Card / Passport / Driving License / PAN card.
• ▸ Proof of residence: Electoral ID Card / Passport / Electricity Bill / Telephone Bill.
• ▸ Proof of business address, in case of non- salaried borrowers
• ▸ Statement of bank account for the last six months
• ▸ Documents For Salaried Individuals
• ▸ Salary slips for last 3 months
• ▸ Bank statement for last 3 months
• ▸ Copy of identity card issued by the employer
• ▸ Form 16 or IT Returns for the last 2 years

Documents For Self-employed individuals for Home Loan

• ▸ Photocopies of IT Returns/Assessment orders for the last 3 years
• ▸ Balance sheet and Profit and Loss A/c for the last three years (Certified true Copy attested by Chartered Accountant)
• ▸ Proof of business address
• ▸ Proof of business (Registration Certificate of establishment, Gumasta /Trade License, Sales Tax Registration etc.)
• ▸ Certificate of Practice-photocopy
• ▸ TDS Certificates (Form 16A wherever applicable)

In order to judge your creditworthiness, your prospective lender will therefore ask you to submit a host of documents. The following are the documents you need in you home loan application file.

If a flat is being purchased from the builder

• ▸ Original copy of agreement for sale/ sale deed with the builder
• ▸ 7/12 extract issued by the land authorities
• ▸ Property register card, which is obtained from the City Survey Department
• ▸ N.A. permission for the land from the collector
• ▸ Search Report and Title Certificate
• ▸ Development agreement between owner of land and the builder
• ▸ Copy of order under the Urban land Ceiling Act
• ▸ Copy of building plans sanctioned by the competent authority
• ▸ Commencement certificate granted by the Corporation
• ▸ Building completion certificate
• ▸ Latest tax receipts paid towards the land or property or flat to be purchased
• ▸ Partnership deed or memorandum of association of the builders firm

If you are constructing a house on own land

• ▸ Original sale deed of land and extract of Index II
• ▸ 7/12 extract or property register card in your name
• ▸ Copy of N.A. permission for land from the collector
• ▸ Search and title report
• ▸ Copy of tax paid under Urban Land Ceiling Act
• ▸ Copy of the building plans sanctioned by a competent authority
• ▸ Building permission granted by the Corporation
• ▸ The latest receipts of taxes paid for your land
• ▸ Estimate of the cost of construction certified by the architect
• ▸ Putting together these documents may seem like an arduous task to you, but do go through the documentation process properly to ensure that there are no gaps from your end that may be the cause of your loan application getting rejected.

If the property being purchased is located in a Cooperative Society

• ▸ Allotment letter from the Society in your name
• ▸ Original share certificate provided the Society
• ▸ Certificate of the registration of the society
• ▸ No objection certificate from the society
• ▸ 7/12 extract or property register card in the Society's name
• ▸ Copy of N.A permission for the land from the collector
• ▸ Search Report and Title Certificate
• ▸ Copy of order under the Urban Land Ceiling Act
• ▸ Copy of the building plans sanctioned by a competent authority
• ▸ Commencement certificate granted by Corporation
• ▸ The latest receipts of taxes paid for the property
• ▸ Original Agreement to assign / Deed of assignment