Home Loan

A housing loan is a specified sum of money borrowed from banks and Housing Finance Companies (HFCs) to purchase a house. Important factors to be considered while seeking a house loan are interest rate, loan amount, loan tenure, monthly EMI  and credit score.

Home Loan Types

Home Purchase Loans

This type of loan is taken to buy a residential property, including flats, row houses and bungalows. The maximum loan amount offered by banks is 90% of the present market value of the property. For Non-Banking Financial Companies (NBFCs), this value is 80%.

Documents Required for Home Purchase Loan

Mentioned below are some common documents required for availing a home purchase loan. However, the requirements may vary from provider to provider.

  • Age Proof (Birth certificate, Class 10 marks sheet, etc.)
  • Address Proof (Copy of passport, Voter ID, Utility bills, etc.)
  • Income Proof (Salary slips and ITR details)
  • Identification Proof (PAN card, Passport, Voter ID, etc.)
  • Existing Loan Documents (if any)
  • Documents of Property to be Purchased

Home Construction Loans

This type of home loan can be availed by the owner of land to meet the costs of constructing a new house. The loan can also be taken to finish the construction of an unfinished house.

Documents Required for Home Construction Loan

Mentioned below is the list of documents required for availing a home construction loan. However, the requirements may vary from provider to provider.

  • Age Proof (Birth certificate, Class 10 marks sheet, etc.)
  • Address Proof (Copy of passport, Utility bills, Voter ID, etc.)
  • Income Proof (Salary slips and ITR details)
  • Identification Proof (Passport, PAN card, Voter ID, etc.)
  • Existing Loan Documents (if any)
  • Property Documents

Home Improvement Loans

This type of home loan can be availed to renovate, repair or refurnish your home. these are very popular due to low interest rate.

Documents Required for Home Improvement Loans

Mentioned below is the list of documents required for availing a home improvement loan. However, the requirements may vary a bit from provider to provider.

  • Age Proof (Birth certificate, Class 10 marks sheet, etc.)
  • Address Proof (Copy of passport, Utility bills, Voter ID, etc.)
  • Income Proof (Salary slips and ITR details)
  • Property Title Deeds (Original)
  • Estimated Renovation Quotation

Land-Purchase Loans

This type of home loan can be availed for the purchase of land or a plot loan for construction or as an investment.

Documents Required for Land-Purchase Loans

The table below shows the documents required for availing a home purchase loan. However, the requirements may vary a bit from provider to provider.

  • Age Proof (Birth certificate, Class 10 marks sheet, etc.)
  • Address Proof (Copy of passport, Utility bills, Voter ID, etc.)
  • Income Proof (Salary slips and ITR)
  • Existing Loan Documents (if any)
  • Property-related Documents