Home Loan

From where can I get home loans?
Buying a residential or commercial property now comes with easy loans offered by various Banks and Financial Institutions. While rates may vary, the criterion remains more or less the same. We give below the eligibility criteria as followed by the Banks/ FIs There are several Housing Finance Institutes who are currently providing Home Loans.
  • SBI
  • HDFC Ltd.
  • ICICI Bank
  • LIC Housing Finance
  • CITI Bank
  • Axis Bank etc.

Following categories are eligible to apply for Home Loan:

  • Salaried individuals
  • Self employed professionals/businessmen
  • NRIs Income of spouse/parents/children as co-applicant can be added if you require higher eligibility subject to maximum of three
What documents are required to get the loan sanctioned?

SALARIED CUSTOMERS

  • Application form with photograph
  • Identity and Residence Proof
  • Latest Salary-slip (For employed)
  • Education Qualifications Certificate.
  • Form 16 for last three years
  • Last six months bank statement
  • Processing fee cheque

SELF EMPLOYED PROFESSIONALS

  • Application form & photograph
  • Identity & Residence proof
  • Form 16 Last 3 years Income Tax returns (self and business) Business profile
  • Last 6 months bank statements
  • Processing fee cheque

SELF EMPLOYED BUSINESSMAN

  • Application form & photograph
  • Last 3 years Profit /Loss and Balance Sheet
  • Last 3 years Income Tax returns (self and business)
  • Last 3 years Profit /Loss and Balance Sheet
  • Last 6 months bank statements (self and business)
  • Processing fee cheque

NRI CUSTOMERS

  • Application form & photograph
  • Photocopy of the Employment Contract or Labour Contract and English translation
  • countersigned by your employer
  • Latest salary certificate (in English) specifying the following:
    • Name (as it appears in the passport)
    • Date of joining
    • Passport Number
    • Designation
    • Perquisites and salary
    • Photocopy of Identity card / Labour card
    • Photocopy of latest work permit
    • Photocopy of valid resident visa stamped on the passport
    • Overseas Bank Account and NRE/NRO statement for the last 1 year.
    • Continuous Discharge Certificate (CDC)- if applicable
    • Latest Credit Bureau Report [Applicable to customers residing in countries where Credit Bureaus exists. eg. USA, UK etc.]
    • Property related documents
    • Processing fee cheque
How much loan can one get?
You can get a Home Loan of up to 80% of the Total Consideration Value, or, your eligibility whichever is lower.
Can a Home Loan be Pre-approved?
Yes, you can avail for a pre approval from any financial institution. However all pre approvals has a validity period, which may be checked out with the concerned Financial institution.
Can I have Co-Ownership in the Property?
Yes you can have your wife, son/daughter, father/mother as a Co-Borrower. However you are again requested to check with the Financial Institution regarding their permissible ownership grid.
Who can be a co-applicant for the loan?
The spouse of the applicant can be included as a co-applicant for the home loan and his/her income shall be included to enhance the loan amount. Further, in case there are any other co-owners, they also need to be co-applicants.
Is Co-Applicant/Local P.O.A mandatory for applying for Home Loans, even if I don't have a Co-Borrower in the property?
Certain Financial Institution has made it mandatory for a Co-Applicant to join in the Loan (irrespective of his/her being/not being a Co-Owner in the property, with a Local Power of Attorney Holder in India. This may further be clarified with the Financial Institution.
What is the repayment period of the loan?
You can select the payment period you are comfortable with up to 15 years or Retirement age whichever is earlier.
What is the Process for Application?
Application needs to be made in the prescribed Application Form of the Financial Institution, along with relevant documents and Processing Fees to the concerned

Financial Institution.
On Approval/ Sanction of the Application the Financial Institution forwards a Approval/Sanction Letter to the Applicant & Co-Applicant.
On Receipt of the approval Letter, the property can be selected/ if selected the disbursement process can be initiated.
How is the loan disbursed?

The loan will be disbursed on:

  • The identification and selection of the property.
  • Submission of legal documents.
  • Legal and technical clearance of the selected property.
  • On satisfactory completion of the above and on the investment of the owners' contribution, the loan amount (as warranted at the stage of construction) will be disbursed.
How are home loans repaid?
The home loan repayment is by Equated Monthly Installments (EMIs) comprising of interest and principal amount calculated on monthly rests through Post Dated Cheques or ECS mode.

In case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called Pre-EMI interest and is payable monthly till the final disbursement is made, after which the EMIs would commence.
What is the security provided for the loan?
The Property being financed is mortgaged with the Financial Institution as the Primary security. However other Co-Lateral security can be asked for based on the Applicants Financial Profile/ Others, which are solely determined by the financial Institutions.
What tax benefits do I enjoy?
Disclaimer: The purpose of this FAQ is to provide the visitors a general understanding on the various issues relating to House Property. The above FAQ been prepared on the basis of advice received and may vary from person to person, based on facts of such case. Reasonable efforts have been taken in collecting, preparing and providing quality information, but we do not warrant or guarantee the accuracy, completeness, adequacy or currency of the information. The contents of the FAQ are subject to changes / amendments made by the CBDT / Finance Ministry.