Home loan is an amount being leased by various banks to the individual to buy a house, plot, construct a house, repair & renovate the house, etc.
Banks mortgaged the property and charged EMI on the loan amount being lent by them. EMI consists of both interest and principal amount, which has to be paid by the borrower to the bank. EMI calculation depends upon three factors i.e. (i) Loan Amount, (ii) Loan Tenure, and (iii) Rate of Interest. EMI on loan amount remains same throughout the loan tenure, if rate of interest not changed.
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What are the documents required for home loan?
Documents required for home loan depends upon the type of employment of an individual.
Documents required for different types of employment are as follows:
- Pan Card
- Aadhar Card
- Voter ID Card
- Passport
- Latest Month Electricity Bill
- Copy of Rent Agreement
- Copy of Registered Lease Deed
- Employee ID Card
- Latest 3 months salary slip
- 3 years form-16, 26AS, ITR with computation of Income
- Annual CTC Letter
- Copy of Appointment Letter
- One year up to date salary account statement
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Copy of previous chain of property papers
- Copy of approved sanction plan or Map
- Pan Card
- Aadhar Card
- Voter ID Card
- Passport
- Latest Month Electricity Bill
- Copy of VAT/ Sales Tax, GST, Import-Export or any other registration Certificate
- Latest Office Address proof i.e electrcity bill, rent agreemen etc.
- Company Profile on the Letterhead of the firm
- Latest 3 year ITR with computation of Income including P & L a/c, balancesheet with their schedule and annexures duly certified by CA
- Form No. 3 CA & 3 CD in case of audited balance sheet
- Latest 2 years VAT/ Sales Tax/ GST return
- Latest 2 year form 26AS if applicable
- One year up to date all the saving and current account statemen
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Copy of previous chain of property papers
- Copy of approved sanction plan or Map
- Pan Card
- Aadhar Card
- Voter ID Card
- Passport
- Latest Month Electricity Bill
- Copy of Rent Agreement/ Registered Lease Deed
- Latest 3 year ITR with computation of Income
- Latest 2 year form-16 with 26AS if applicable
- One year up to date salary account statement
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Copy of previous chain of property papers
- Copy of approved sanction plan or Map.
- Pan Card
- Copy of VAT/ Sales Tax, GST, Import-Export Certificate or any other registration certificate
- Copy of Partnership Deed
- Latest office address proof i.e., electricity bill, rent agreement etc.
- Company Profile on the Letterhead of the Company
- Latest 3 year ITR with computation of Income including P & L a/c, balance sheet with their schedule and annexures duly certified by CA
- Form No. 3 CA & 3 CD in case of audited balance sheet
- Latest 2 years VAT/ Sales Tax/ GST return
- Latest 2 year form 26AS if applicable
- One year up to date all the current account statement
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Pan Card
- Aadhar Card
- Voter ID Card
- Passport
- Latest Month Electricity Bill
- Copy of Rent Agreement/ Registered Lease Deed
- Latest 3 year ITR with computation of Income
- Latest 2 year form-16 with 26AS if applicable
- One year up to date all the saving account statements
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Copy of previous chain of property papers
- Copy of approved sanction plan or Map.
- Pan Card
- MOA & AOA
- Copy of VAT/ Sales Tax, GST, Import-Export Certificate or any other registration certificate
- Latest office address proof i.e., electricity bill, rent agreement etc.
- Company Profile on the Letterhead of the Company
- List of director & shareholder with their shareholding pattern duly certified by CA.
- Latest form-32
- Latest 3 year ITR with computation of Income including P & L a/c, balance sheet with their schedule and annexures duly certified by CA
- Form No. 3 CA & 3 CD in case of audited balance sheet
- Latest 2 years VAT/ Sales Tax/ GST return
- Latest 2 year form 26AS if applicable
- One year up to date all the current account statement
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Pan Card
- Copy of Passport with VISA
- Copy of Green Card
- Complete CDS certificate in case of Merchant Navy
- Copy of valid residence proof in abroad
- Employee ID card or Labour card
- Copy of latest work permit
- Latest 3 months salary slip
- Latest 3 years income tax acknowledgement form
- Annual CTC letter
- Copy of appointment letter
- Credit report from credit agency
- One year Upto date NRI Salary account statement
- One year Upto date NRO/NRE account statement
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Copy of PAN card & Aadhar card
- Power of Attorney in favour of blood relatives or relatives in India
- Copy of previous chain of property papers
- Copy of approved sanction plan or Map
What are the other key factors to be considered before choosing best home loan?
Buying a property from own pocket is not possible for all of us, it is a very big and life time investment, so home loan is the best way to purchase a property but before taking home loan it is necessary to do proper budgeting. Bank will give you loan maximum 75% to 80% of cost of property or market value whichever is lower. So before taking home loan it is necessary to keep 20% to 25% margin money or own contribution with other charges like stamp duty, registration charges, loan processing fees, brokerage etc.
Once budgeting is finalized then check your home loan eligibility, that how much loan you can take from bank. All the banks have different policy to calculate the loan eligibility. Loan eligibility also depends upon so many other factors like age, income, cibil score, work profile and financial stability etc.
Before taking home loan, check rate of interest charged by different bank as it has a major impact on your EMI. If rate of interest is high then EMI is also high, so choose the bank which provides lower rate of interest so EMI will not put extra loads on your EMI.
Bank or financial institution charges loan processing fees to process your home loan application. There are two types of charges one is loan processing fees and another one is loan administration charges. Loan processing fee is taken by the bank or NBFC to process your loan application. It could be a fixed percentage of your loan amount or a fixed amount. Loan administration charges are taken by lender to maintain your loan account after disbursement.
Bank or NBFC laid down several conditions related to balance transfer of home loan to another lender, pre-closure charges, part payment charges etc. It is advisable to read all the terms and conditions before choosing the best bank.