- July 14, 2020
- Posted by: asmaenterprise
About Home Loan
Home loans are given to individuals who are interested in buying/constructing houses. It is supported by banks or financial institutions who loan a certain amount, based on the need of the individual(s). Loans can be applied for purchase, construction or improvement of homes.
Characteristic of Home Loan
- The asset i.e. your home/property is pledged as security collateral. In case of failure of payment of the loan on a timely basis, the bank/lender would be entitled to retrieve the asset.
- The loan amount varies, with minimum amount being Rs 2,00,000/-
- The repayment time period, which ranges upto 30 years, is fixed based on the amount taken as loan and includes the outstanding principal plus the interest costs.
- The principal amount and the interest together constitute the EMI (Equated Monthly Installment) of the loan.
The loan charges include registration charge, fee for processing, prepayment penalty, commitment charge and miscellaneous charges for documentation & consultation.
Types of Home Loan
There is a home loan for every requirement, take a look:
- Home Purchase Loans
- Land Purchase Loans
- Home Construction Loans
- Home Improvement Loans
- Home Conversion Loans
- Home Extension Loans
- Bridge Loans
Documents Required for Home Loan
- Duly signed and filled application form
- Passport-size photograph
- Statements of investments, if any
- Copy of plan approved for the proposed construction/extension
- Cost estimation or valuation report from the bank’s (or finance company’s) panel CA
- Allotment letter of housing board/NOC of the society/builder etc.
- Bank statement and salary slips
In addition to these, you will have to also submit the following documents:
- Identity and signature proof – Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
- Address Proof – Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
- Age Proof – Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.