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A home loan can be a quick solution to all your home related financial woes, but like any other loan, you will need to prove your eligibility before your lender will provide you the funds.
So, how do you go about it?
It’s simple enough. All you need to do is to submit all the personal/professional details to your lender. Here is a list of eligibility criteria that you need to fulfill in order to successfully avail the loan.
1. check your eligibility
You have to meet certain criteria for your lenders to believe that you are suitable for the loan. Here is your home loan eligibility criteria checklist which may vary slightly depending on your lender while maintaining the same essence:
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Valid identity proof (Passport/Voter ID/Driving License) to prove that you are an Indian resident
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You must fall in the age group of 25-70 years
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If you are a self-employed person, you will need to submit proof that your business is at least 5 years old
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Your loan amount should be between the minimum and maximum amount offered by your lender
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Your most recent credit report with a score of 750 or higher and a brief history of on-time payments and credit utilization
2. Documents required for home loan approval
Once you qualify, the financial institution lending you the money will need documented proof of your existence and financial stability. Here are the papers you will need to submit:
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Complete home loan application with all your credit
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Latest passport size photographs
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Proof of Identity (Voter’s ID/Passport/Driving License)
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Proof of Residence (Voter ID/ Water or Electricity Bill)
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Proof of Business Address (in case of self-employed candidates)
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Bank account statement for the last six months
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signature recognition
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Statement of personal assets and liabilities in the appropriate format prescribed by your lender
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Detailed information about the loans you are already servicing including details of the lender and the securities pledged
If you are a salaried individual, you will need to provide additional documents to the lender. Here is a list to help you organize your papers:
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Original Salary Certificate for the last month
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Tax Deduction at Source Certificate – Form 16 or a copy of the IT returns made by you in the last two years accepted by the Income Tax Department
For a self-employed individual running an enterprise, the additional documents to be submitted are as follows:
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Income tax returns made in the last three years accepted by the Income Tax Department
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Receipt Copies of Advance Income Tax Payment
3. Property Documents Required for Home Loan Sanction
When you present your property for a home loan, the financial institution will ask for valid paperwork to remove any illegalities before the loan amount is sanctioned. Here is a list of documents that you may need to submit when asked for by your lender:
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agreement to sell
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paid building and land tax receipts
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possession certificate
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Location sketch of the property certified by the revenue authorities
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Allotment letter issued by housing board or private builder
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Receipts of advance payment made for purchase of flat
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non-encumbrance certificate
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Original NOC under Urban Land Ceiling Act, 1976
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If the land is used for agricultural purposes, copy of the relevant order
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Original NOC from housing society or private builder
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DETAILED ESTIMATION OF COST OF CONSTRUCTION
A stellar paper trail is undoubtedly the best way to get your loan application approved as those pieces of paper prove your ability to repay the loan. You have to think of it as a job interview. Every detail mentioned in your documents needs to be valid to get the final nod of approval from your lender.
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