To be eligible for a home loan, the applicant must have a regular source of income from employment or self-employment.
The loan amount depends on a number of factors such as age, income, number of dependents, qualifications, assets and liabilities, income stability, business profits, etc.
However, there are ways in which to increase loan eligibility and amount. If a spouse is earning, applying together as co-applicants can increase chances of a larger loan amount. On the contrary, if there are any co-owners they must necessarily be co-applicants. However, the most important factor in sanctioning loans is repayment ability.
DOCUMENTS REQUIRED FOR HOME LOANS
Documents required for employed persons:
- Latest salary slip
- A Xerox copy of Form no.16 A (TDS Form) from the applicants Employer
- The original certificate from the applicant’s employer for any other allowances that are not reflected in the applicants salary slip.
- A Xerox copy of the applicants updated bank pass book of salary a/c and a statement of the applicants accounts for last 6 months.
- A Xerox copy of the applicants voter I.D. card or the applicants Company's I.D. or the applicants passport.
- Passport size photograph of the applicant & co-applicant as applicable
- Xerox copy of pan card/telephone/electricity bills
Documents required for self-employed persons:
- Updated pass book and Xerox copy of the applicants statement of accounts for the past 1 year.
- A brief introduction of Business/Profession. A profile of the applicants business mentioning at least the nature of the business, client list, suppliers, employee strength, geographical spread, etc.
- In the case of a business partnership a copy of the partnership deed, 3 years P & L a/c, B/S, computation of income certified by a CA and individual computation of income and tax returns for last 3 years is required.
- In the case of a proprietor or professional 3 years P & L a/c, B/S, computation of income certified by a CA and an income tax return file statement for 3 years is required.
- If the company applying for a loan is a Pvt. Ltd. a remuneration certificate, the board resolution for fixing remuneration, the company's annual report and individual IT returns for last 3 years is required.
DISBURSEMENTThe loan will be sanctioned after the selection of property and submission of the required legal documents. The process might take some time as each document needs to be verified for the safety of the applicant. Once the above has been submitted and verified, and investment of the applicant's own contribution, the loan amount will be disbursed by the bank. The disbursement will be in favor of the builder.
Documents required for disbursement:
- Loan agreements
- Disbursement requests
- Post-dated cheques
*This is for indication purpose only, the rules can change as per government regulations, these documents and guidelines are not final or binding, some norms may vary from bank to bank