Types of Home Loan Ayuuuuuuuu

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Types of Home LoansA person seeking investments for house or a property opts for Home Loans for a varietyof purposes ranging from construction to renovation. The Error: Reference source notfound (HFCs) now offer individuals with various alternatives to choose from while

buying a home loan. And the availability of Error: Reference source not found offered isas varied as their requirements.

1. Home Purchase Loans

2. Home Construction Loans

3. Home Improvement Loans

4. Home Extension Loans

5. Home Conversion Loans

6. Land Purchase Loans

7. Stamp Duty Loans

8. Bridge Loans

9. Balance Transfer Loans

10. Refinance Loans

11. Loans to NRIs

Home Purchase Loans: This is the basic Error: Reference source not found for the purchase of a new home.

Home Construction Loans:This loan is available for the construction of a new home on a said property. The

documents that are required in such a case are slightly different from the ones you submitfor a normal Error: Reference source not found . If you have purchased this plot within a period of one year before you started construction of your house, most HFCs will includethe land cost as a component, to value the total cost of the property. In cases where the

period from the date of purchase of land to the date of application has exceeded a year,the land cost will not be included in the total cost of property while calculating eligibility.

Home Improvement Loans:These loans are given for implementing repair works and renovations in a home that hasalready been purchased, for external works like structural repairs, waterproofing or internal work like tiling and flooring, plumbing, electrical work, painting, etc. One canavail of such a loan facility of a home improvement loan, after obtaining the requisiteapprovals from the relevant building authority.

Home Extension Loans: An extension loan is one which helps you to meet the expenses of any alteration to theexisting building like extension/ modification of an existing home; for example additionof an extra room etc. One can avail of such a loan facility of a Error: Reference sourcenot found, after obtaining the requisite approvals from the relevant municipal corporation.


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Home Conversion Loans:This is available for those who have financed the present home with a home loan and

wish to purchase and move to another home for which some extra funds are required.Through a home conversion loan, the existing loan is transferred to the new homeincluding the extra amount required, eliminating the need for pre-payment of the previousloan.

Land Purchase Loans:This loan is available for purchase of land for both home construction or investment

purposes

Stamp Duty Loans:This loan is sanctioned to pay the stamp duty amount that needs to be paid on the

purchase of property.

Bridge Loans:Bridge Loans are designed for people who wish to sell the existing home and purchaseanother. The bridge loan helps finance the new home, until a buyer is found for the oldhome.

Balance-Transfer Loans: Balance Transfer is the transfer of the balance of an existing home loan that you availedat a higher rate of interest (ROI) to either the same HFC or another HFC at the currentROI a lower rate of interest.

Re-finance Loans:Refinance loans are taken in case when a loan for your house from a HFI at a particular ROI you have taken drops over the years and you stand to lose. In such cases you mayopt to swap your loan. This could be done from either the same HFI or another HFI at thecurrent rates of interest, which is lower.

NRI Home Loans:This is tailored for the requirements of Error: Reference source not found who wish to

build or buy a home or property in India. The HFCs offer attractive housing finance plans

for Error: Reference source not found with suitable repayment options.


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Evaluation and verification of home loan applicantAfter applying successfully for the home loan and submitting the processing fees, the

bank evaluates your application, decides in principal about your home loan and requires a personal meeting with the bank officials. This decision for personal interaction can betaken within 2-3 days of submitting a complete application. The purpose of this personalinteraction is to know more about the borrower and his repayment capacity.

Satisfied by your application and personal interaction, the bank proceeds to verify all thefacts that you mentioned in your application for home loan. A field investigation processis initiated - to confirm and validate everything stated in the application form. Qualifiedrepresentatives are sent by the bank to your office and place of residence to ascertain thefacts. The references provided in the application are cross checked and verified.

Verification of repayment capacityOnce the field investigations over, the bank now goes ahead to verify your repaymentcapacity. This is the most vital part of any home loan process. If the bank finds that you'llnot be able to repay the money back with interest on time, it will simply deny you anyhome loan offer. On the other hand if the bank finds that all's well and is convinced byyour repayment capacity, it sanctions your home loan. Based on how well the bank issatisfied by your financial conditions and repayment capacity the bank can issue aconditional sanction or unconditional sanction. If the sanction is conditional, you'll haveto fulfill the conditions imposed before the loan is disbursed.

Offer letter for home loan

The bank then prepares an offer letter which contains the following detail:

The amount of home loan sanctioned

The interest rate applicable on your home loan

Whether the interest rate is fixed or floating

Your home loan tenure

The mode of repayment of the home loan

If any special scheme applies to the home loan, its details

The terms and conditions associated with the home loanIf you find the offer attractive and agree with all the facts mentioned in the offer letter,you will have to provide an acceptance copy to the bank. This is generally a duplicate of the offer letter signed by you, provided to the bank for its records. If the bank charges anyAdministrative fee, it will have to be submitted at this stage.


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Tax Saving & Benefits of Home Loan inIndiaCertainly Saving Tax on your income is always a spot of interest for each one of us andwhy not save on it when there is a legal way? Home Loans are one of a better ways for saving on your taxes for a longer duration. So how it exactly works?

There are different sections of the Income Tax Act of India under which you can availdeductions on the taxes, confers you to save a signification amount on your total taxliability.

There are two sections of the Income Tax Act of India which will allow you to get a

deduction if you have taken a home loan; this of course ignores home loans from privatesources (Friend, Family, etc). The two sections are here under.

Sec 24(b) of the Income Tax Act, 1961

Sec 80(c) of the Income Tax Act, 1961

Section 24(b) is with respect to the Interest Paid on the Home Loan and Section 80(c) iswith respect to the Principal Repayment of the Home Loan.

The Section 24(b) of the Income Tax Act, 1961 is applicable on Home loan for purchaseof house or construction of the house property. You can avail a deduction of up to Rs.1,50,000 of you total tax liability, Also reconstruction or renewal or repairs is eligible for deductions under the said section.

The Section 80(c) of the Income Tax Act, 1961 allows you a deduction of up to Rs.1,00,000 on the principal repayment amount.

IllustrationSuppose your total taxable income is Rs. 4,00,000.Principal repayment is Rs. 1,50,000 and total Interest Payable is Rs. 1,80,000.

The total deduction allowed is Rs. 2,50,000 (1+1.5Lacs) under the sections. Hence now

your total taxable income becomes only Rs. 1,50,000 (4-2.5Lacs) and that saves a lot of money!


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Housing Loan India

To own a house is the dream of almost every individual. In India, demand for home ismore but not every one is financially strong to own the house. Here comes the concept of home loans given by various banks, financial institutions, housing financing companieslike HDFC, State Bank of India, ICICI, Citi Bank, etc.

Housing loans are generally secured loans as the loan amount is huge. Thus the borrower has to offer guarantee against the loan applied for to the lender. Housing financecompanies sanction 80-85 percent of the cost of the house. The loan amount is to berepaid in equal monthly installments.

Different lenders offer different rates of interest. Hence the borrower must be aware of the interest rates prevailing in the market. Proper market research must be done so thatyou can avail the loan at the best rate of interest. Online information of variouscompanies providing loan is available along with interest rates. Application forms can befilled online which saves time of the borrower and also makes the task hassle free.

In India, both fixed interest rate and floating interest rates are offered to the borrower.

Fixed Interest Rate: It is the rate of interest which is fixed on the loan amount for the lifeof the loan and it does not vary with fluctuations in the market. Interest rate may vary dueto policy change by RBI, market conditions etc.

Floating Interest Rate: It the rate that fluctuates with the fluctuation in the market interestrate. The interest rate may increase or decrease depending on the situation in the market.

Keeping the circumstances in mind, borrower must opt for the best suitable type of interest rate. Apart from interest there are other charges like processing fee,administrative fee, etc. on the loan amount sanctioned and the charges vary from lender tolender. The companies providing loan check the creditability of the borrower beforesanctioning the loan.

For repayment of home loans, there are many options available for the borrower to suittheir personal requirements.

Equal Monthly Installment (EMI)

Variably Monthly Installment

EMI is the fixed monthly installment to be paid by the borrower. It is a preferred choiceof borrower as he is aware of the monthly payment to be made. Variable monthly


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installment is the flexible payment method.

Prepayment of Housing Loan: In order to repay the loan faster additional payment ismade apart from monthly installments. But it is not accepted by all the institutions andthey may charge a penalty of 1% to 1.5% of the additional amount repaid. Someinstitutions allow prepayment and to some we have to give 1-3 months notice before

making prepayment.

Executive summary

This document provides guidance to banks and banking supervisors on recognition andmeasurement of loans, establishment of loan loss allowances, credit risk disclosure andrelated matters. It sets out banking supervisors' views on sound loan accounting anddisclosure practices for banks. The document also serves as a basic framework for supervisory evaluation of banks' policies and practices in these areas. It may also behelpful to accounting standard-setters.

Various international bodies, including the Basel Committee, have called for progress inaccounting and disclosure practices for banks' lending business and related credit risk.Accounting treatments generally, and loan accounting treatments specifically, cansignificantly affect the accuracy of financial and supervisory reporting and related capitalcalculations. Moreover, sound accounting and disclosure practices are essential to ensurethe enhanced transparency needed to facilitate the effective supervision and marketdiscipline of financial institutions. In addition to the Basel Committee, the G7 FinanceMinisters, G10 central bank Governors and international financial institutions such as theInternational Monetary Fund and the World Bank have called for progress in this area.

The paper begins by stating the overall objectives of the Basel Committee in addressingthe topic of sound practices for loan accounting and disclosure. It summarises key termsand ties this guidance to the credit risk management process. The paper then providesguidance on sound practices with respect to key loan accounting issues, such as the initialrecognition and measurement of loans, subsequent measurement of impaired loans, theestablishment of loan loss allowances, and income recognition. Moreover, the paper

presents sound disclosure practices focusing on the credit risk in the loan portfolio. The

paper also includes a brief discussion of the role of supervisors in assessing a bank'smanagement of asset quality and the adequacy of loan loss allowances.

Four primary concerns of supervisors regarding loan accounting and disclosure are a) theadequacy of an institution's process for determining allowances, b) the adequacy of thetotal allowance, c) the timely recognition of identified losses through either specificallowances or charge-offs and d) timely and accurate credit risk disclosures.

The publication of this paper is a component of the Committee's long-standing work to


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promote effective banking supervision and safe and sound banking systems. Itcomplements the Basel Core Principles in the field of accounting and disclosure for

banks' lending business and related credit risk. International implementation of theguidelines in this paper should help achieve enhanced bank accounting policies and

practices, which are consistent with sound risk management practices, in both G10 and

non-G10 countries, as well as increased convergence of such policies and practices across banks and countries.

Home Loan: Process: OverviewThere are several steps in the home loan process. Here are the steps in brief:

1. Application form

2. Personal Discussion - Error: Reference source not found , Error: Reference source not

found , Error: Reference source not found3. Bank's Field Investigation

4. Credit appraisal by the bank and loan sanction

5. Offer Letter

6. Submission of legal documents & legal check

7. Technical / Valuation check

8. Valuation

9. Registration of property documents

10. Signing of agreements and submitting post-dated cheques11. Disbursement

Home Loan: Process: BasicsError: Reference source not found

tips on how to choose property to invest ......

Error: Reference source not found Can one sell his/her property taken on loan when it is still outstanding againstit? ......

Error: Reference source not foundincrease or decrease the loan amount sanctioned ......


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Error: Reference source not foundHousing Finance Companies provide Home Loans as well asHome Insurance in India.

1 Bob Housing Finance Ltd. PurposeFor purchase of land /site from Govt./statutory bodiessuch as housing boards, DevelopmentAuthorities/CIDCO etc. Error: Reference source notfound

1 Canfin Home Loans

After having seen over a lakh satisfied customerssecure their own homes, Can Fin Homes now lookstoward your home financing requirements. Havingspent over a decade in the home finance business, weare well placed to understand the significance andimportance of your need to own a home. Error:Reference source not found

2 IND BANK HOUSING LTD.Loans to Indian Resident Individuals

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Public Sector

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Private Institutions








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1. Quantum of Loan

Purchase/Construction

Minimum - Rs 7,500/-

Maximum - Rs 25,00,000/-

Upgradation/ Major Repairs/ Additional Construction

Minimum Rs 7,500/-

Maximum Rs 5,00,000/-

3 PNB Housing Finance

We provide housing finance to individuals for construction or for acquisition/

purchase of house/ flat from development authorities such as DDA/HUDA/PUDA/RHB etc. and also from private builders/groups housing societies.

4 SBI Housing Loan

SBI Housing loan schemes are designed to make it simple for you to make achoice at least as far as financing goes! Error: Reference source not found

5 GE Money Home LoanShift to your dream home today

Still living in a rented apartment?

Is owning your own home still a distant dream.

6 HDFC Housing Finance

A new home brings with it new hopes, joys and emotions. At HDFC, we haveshared new hopes, joys and emotions with over 26 Lakh customers. Everycustomer has a specific and unique concern .Error: Reference source not found

7 HUDCO NIWAS

INDIVIDUAL HOUSING FINANCE SCHEME (FOR RI'S)Property:Housing Urban Development Corporation (HUDCO) offers Niwas scheme. The


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scheme is a housing finance instrument for individual families which offers loanassistance to individuals constructing or buying a house or a flat.


8 ICICI Home Loan

ICICI Bank offers easy home loans for purchase / construction of flat / house.Also you can avail of host of other benefits like:

Attractive Interest Rates

Simplified Documentation

Doorstep Service.

9 LIC Housing Finance

Loan Amount : Min. Rs. 25,000 - Max.Rs.1,00,00,000.Loan to Property Cost : 85% of total Cost of the property including Stamp Dutyand Registration Charges.

10 Sundaram Finance Group

Availing Home Loans you could

construct a house on your plot of land

purchase an apartment from a builder

purchase a bungalow/apartment on a second hand basis.


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Home loanEligibility

Home loan eligibility for Resident Indians depends upon the repayment capacity of theloan applicant. The maximum loan that can be sanctioned varies with the banks and other housing finance companies (HFC) and generally, the maximum loan amount granted is80 to 85% of the cost of your home.

Home loan eligibility corresponding to repayment option is based on the followingfactors. Even though, the eligibility criteria may vary according to the HFCs regulations.

Home loan Eligibility Criteria

Age(Minimum)

21 Years

Age(Maximum)

58(salaried)

60(Publiclimited/GovernmentEmployees)


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65 (self employed)

Qualification Graduation

IncomeStable source of income and savinghistory

Dependents Number of dependents, assets,liabilities

Other incomesources

Spouse's income

As home loan rates increase, the loan eligibility for a borrower becomes stiffer. In such ascenario, some home loan borrowers might have to re-evaluate their options (in terms of loan amount) on account of the new eligibility criteria. Home loan eligibility can beenhanced by:

i) Increasing the Home loan tenureOne of the basic process of enhancing the home loan eligibility is by opting for a higher

tenure. This is so because the EMI, which an individual has to pay, starts to decline as thetenure increases while the interest rate as well as the principal amount remains the same.What changes though, is the net interest outgo, which rises with a rise in tenure. Andsince the individual is paying a lower EMI now, his 'ability to pay' and therefore his loaneligibility automatically increase.

ii) Repaying other outstanding loansThere might be adverse effect on home loan eligibility for individuals with outstandingloans like car loans or personal loans. Industry standards suggest that existing loans withover 12 unpaid installments are taken into account while computing the home loan

borrower's eligibility. In such a scenario, individuals have the option of prepaying in part/full their existing loans. This will ensure that their eligibility for the home loan

purpose is unaffected.iii) Clubbing of incomesHome loan eligibility can also be enhanced by clubbing incomes of spouse, children (sonor daughter) staying with the applicant and having regular income and even earning

parents (father or mother) living with the applicant. The eligibility in such cases, will becalculated on the clubbed income of both the applicants enhancing the individual'seligibility to the extent of the co-applicant's income.


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iv) Step-up loanIndividuals can also enhance their loan eligibility by opting for step-up loans. A step-uploan is a loan wherein an individual pays a lower EMI during the initial years and thesame is enhanced during the rest of the loan tenure. HFCs usually consider the lower EMIof the initial years to calculate his loan eligibility while the initial lower EMI helps

increase the individual's 'capacity to borrow'.v) PerksSalaried individuals must ensure that variable sources of income like performance-linked

pay among others are taken into consideration while computing their income. This in turnwill imply that the loan amounts they are eligible for stand enhanced as well.

However, potential investors and borrowers must work out solutions best suited for their profile after speaking to their home loan consultant and only then consider acting on theoptions discussed. Because, increasing loan eligibility can have an impact on other aspects of their financial planning.

New RBI directive for home loans

The Reserve Bank of India (RBI) has in the latest directive asked the Indian banks to bemore "fair and transparent" while signing their agreements with the consumers. This hascome following complaints from various consumer sections regarding home loans.

It has emphasized on the fact that while giving a home loan, the banks should not tie their loans with their own prime lending rates (PLR) which often results in pro-bank andagainst consumer interest.

Households should get credit counseling before signing any loan agreement. In suchcase, banks should give credit counseling to customer before giving a loan. Anynon-governmental organization can also give independent credit counseling tosmall borrowers.

Consumers often complain of not receiving benefits of falling interest rates as bankstie their floating rate loans with its PLR and even when rates fall, the banks keptthe PLR unchanged. But when interest rates are hiked, the banks increase the

benchmark rate, thus making customers pay a higher rate and consequentlyincrease the number of EMIs too. The RBI has asked the banks to mend rules for the same.

Individual borrowers should ask for the exact tenure and EMI while taking a fixedrate loan. The RBI has also resolved to look into all consumer complaints if it is

bought to the regulator's notice.

The IRDA (insurance regulator) has powers to take action against banks if a customer feels cheated while buying an insurance product. On its regulatory role, the RBI istrying to maintain a balance between the extent of freedom granted to the banksand the objectives of governance.

RBI has made it mandatory for all banks - including private and foreign banks - to


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offer a passbook to their customers with the address and telephone number of thenearest branch.

Customers have often been harassed by banks' call centers where there is noaccountability of the query made. The "do not call" registry has also been flouted

by banks as customers are bombarded with unnecessary product offerings. The

RBI has directed the Indian Banks' Association to come out with a single "do notcall" registry or when a customer adds his name to a single bank registry it shouldthen stop unsolicited calls from all banks.

On rising credit card frauds and wrong statements given by the banks, the RBI hasasked the customers to approach the ombudsman to redress their problems. Thisway the RBI feels would inculcate more consumer friendly practices amongIndian banks.

Repayment options

Every housing finance companies or banks have customized repayment options to suitevery individual's requirement and also repaying capacity with some tax benefits. Theyhave thereby come up with more flexible and Multiple Repayment Option.

A few among them are:

Step-up Repayment Facility

The objective of step-up repayment is to provide the borrower with a repayment schedule,which is linked to expected growth in income. It not only helps a customer get a larger amount of loan as compared to the loan under the normal housing loan; but the customer can avail of a higher amount of loan and pay lower EMIs in the initial years, which issubsequently accelerated proportionately with the assumed increase in his income.

Flexible Loan installments Plan

This repayment option offers a customized solution to suit the needs of customers whoserepayment capacity is likely to alter during the term of the loan. In cases when a borrower is nearing retirement, the loan is structured in such a way that the EMI is higher duringthe initial years and subsequently decreases in the latter part proportionate to the reducedincome of the customer. This option helps such customers combine the incomes and takea long term home loan where in the installment reduces upon retirement of the borrower.

Tranche Based EMI

Customers purchasing an under construction property, need to pay interest (on the loanamount drawn based on level of construction) till the property is ready. Tranche BasedEMI is a special facility offered by some banks to help customer save this interest.Customers can fix the installments they wish to pay till the property is ready. Theminimum amount payable is the interest on the loan amount drawn. Anything over andabove the interest paid by the customer goes towards principal repayment. The customer

benefits by starting EMI and hence repays the loan faster.


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Accelerated Repayment Scheme

Accelerated Repayment Scheme offers you a great opportunity to repay the loan faster byincreasing the EMI. Whenever you get an increment, increase in your disposable incomeor have lump sum funds for loan prepayment, you can benefit by

Increase in EMI means faster loan repayment

Saving of interest because of faster loan repayment

Or invest lump sum funds rather than use it for loan prepayment. The return from theinvestments also gives you the comfort of paying the increased EMI.

Balloon Payment Balloon Payment is an augmentation tool offered by the financial institutions, whichhelps in increasing the loan eligibility of the customer without increasing the EMI byassigning securities like National Savings Certificate (NSC), LIC policies etc. The

present value of the maturity amount of assigned securities is combined with the loanamount to arrive at the enhanced loan eligibility. Under this facility, the EMI is calculatedon the net loan amount (i.e. total loan less the present value of the maturity value of thesecurities).

Home Loan Tenure

Home loan tenures fixed by RBI are available up to a term of 15 years. Some financialinstitutions have home loan tenures in the range extending up to 20, 25 and 30 years if theapplicant fulfils certain criteria. However, you cannot opt for a term that extends beyondyour attaining retirement age or 60 years of age (whichever is earlier).

Home loan Tenure:

Type of Property

Salaried

Self-Employed

Residential 15years 10 years

Plot of Land 10years 10 years

AgainstExistingPlot of Land

15years 10 years


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Tax benefits

There are certain tax benefits for the resident Indians based on the principal and interestcomponent of a loan under the Income Tax Act, 1961. It may help one get tax benefit upto Rs. 50,490 p.a. (approx). if interest repayment of Rs. 1,50,000 p.a. is paid. In additionto this, one also is eligible for getting tax benefits under section 80C on repayment of Rs.1, 00,000 p.a. that further reduces the tax liability by Rs.33.660 p.a.

These deductions are available to assesses, who have taken a loan to either buy or build ahouse, under Section 24(b). However, interest on borrowed capital is deductible up to Rs150,000 if the following conditions are fulfilled:

Capital is borrowed for acquiring or constructing a property on or after April 1, 1999.

The acquisition and construction should be completed within 3 years from the end of the financial year in which capital was borrowed.

The person, extending the loan, certifies that such interest is payable in respect of theamount advanced for acquisition or construction of the house

A loan for refinance of the principle amount outstanding under an earlier loan takenfor such acquisition or construction.

If the conditions stated above are not fulfilled, then the interest on borrowed capital isdeductible up to Rs 30,000 though the following conditions have to be satisfied:

Capital is borrowed before April 1, 1999 for purchase, construction, reconstructionrepairs or renewal of a house property.

Capital should be borrowed on or after April 1, 1999 for reconstruction, repairs or renewals of a house property.


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If the capital is borrowed on or after April 1, 1999, but construction is not completedwithin 3 years from the end of the year, in which capital is borrowed.

In addition to the above, principal repayment of the loan/capital borrowed is eligible for adeduction of up to Rs 100,000 under Section 80C from assessment year 2006-07.


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Terms and conditions for availing Tax benefits on Home Loans

1 Tax deductions can be claimed on housing loan interest payments, subject to anupper limit of Rs 150,000 for a financial year.

2 An additional loan for extension/improvement to the same house and theindividual's deductions on the existing loan are less than Rs 150,000; he can claimfurther benefits from the additional loan taken, subject to the upper limit of Rs150,000 for a financial year.

3 Tax benefits under Section 24 and deduction under section 80C of the Income TaxAct can be claimed only when the payment is made. If an individual fails to makeEMI payments, he cannot claim tax benefits for the same.

4 According to the Income Tax Act, tax rebates can only be claimed by the loanapplicant.

5 The interest on home loans taken for repairs, renewals or reconstruction, alsoqualifies for the deduction of Rs 150,000.

6 A husband and wife, both of whom are tax-payers with independent incomesources, get tax deduction benefits, with respect to the same housing loan; to theextent of the amount of loan taken in their own respective name.

7 If an individual buys a house and sells it within the same year or after 3 years, andif any profit is made, then a capital gains tax liability arises on the same for whichthe individual is liable to pay short-term capital gains tax since the sale took placein the same year. But in case, if the sale had taken place after 3 years, then a long-term capital gains tax liability would have arisen.

8 On being proved that the home loan is simply an arrangement between the loan-seeker and the builder or with a third party for the purpose of claiming tax

benefits, then tax benefits will not be allowed and benefits, previously claimed,will be clubbed to the income and taxed accordingly.

9 Tax benefits on interest on housing loans are allowable only for the original loanand according to Section 24 (1), tax benefits can also be availed for a second loantaken to repay the first loan but not for subsequent loans. This means that if youhave already availed of one loan to refinance the original loan and want to nowavail a third loan to refinance the second loan, tax rebate on interest payments willnot be permissible.


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DocumentationDocumentation refers to the specific documents to be submitted by Resident Indians asthey apply for home loan. These documents are very much necessary for the financial

institutions to avoid any dispute and uncertainty. The documents to be provided by theresident Indians include income proof, property documents and personal identificationdocuments, etc. which of course varies based on the borrowers financial status and thetype of loan you want to avail.And of course every resident Indian should follow someeligibility criteria before apply Home Loans in India.

However, there are some standard documents made mandatory for a loan applicant to produce such as the loan applicant's profile, earning life of the applicant and presentfinancial status proof etc.

The Applicant's Profile refers to the bio-data of the applicant, mentioning his address,age, family background and detail information.

The Earning Life of the Applicants' proof clarifies the capability of the loan payment.The Present Financial status gives the present capability of handling the own

contribution and other expenditures. This includes the mortgage to be depositedagainst the loan amount.

List of Documents

Salaried Customers Self Employed Professionals Self Employed Businessman

Application form with photograph Application form with photograph Applicationform with photograph

Identity* and Residence Proof** Identity and Residence Proof Identity and ResidenceProof

Latest Salary-slip Education Qualifications Certificate and Proof of businessexistence-Education Qualifications Certificate and Proof of business existence

Form 16 Last 3 years Income Tax returns (self and business) Business profile

Bank statements (last 6 months) Last 3 years Profit /Loss and Balance Sheet Last 3years Income Tax returns (self and business)

Last 3 years Profit /Loss and Balance Sheet

Processing fee cheque Bank statements(last 6 months) Bank statements(last 6 months)

(self and business)

Processing fee cheque Processing fee cheque*Proof of Individual's Identity (any one of the following)

Passport

Photo PAN Card

Defence Identity Card

Voter's Identity Card


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Driving License

Photo Ration Card

Government Identity Card

**Proof of Residence (any one of the following)

Passport

Ration Card

Telephone (Land/Mobile) Bill

Electricity Bill

Driving License

Society Outgoing Bill


Life Insurance Policy

Only Passport can be used as both Proof of Individual's Identity and Proof of Residence.

** Proof of Age (any one of the following)

Passport

Valid Driving License


Birth Certificate

School leaving certificate

LIC Policy or Premium Receipt clearly indicating the applicant's age

Letter from the employer stating the age of the employee

Photo Ration Card