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    What Documents Required for Home Loan – A Complete Checklist

    A Home Loan is a secured loan used to meet the financial needs of an individual to purchase a property. Using a Home Loan, you can finance 75% to 80% of your house/property. Due to the asset’s high value, the borrower will be able to enjoy a variety of benefits. They can avail of a high-funding and a longer repayment tenure. But before applying for this mortgage loan, check Home Loan eligibility. A good credit score can help you negotiate a lower Housing Loan interest rate. Continue reading this article to learn what Home Loan eligibility is and which documents you need to apply for. 

    Home Loan Eligibility Criterion for Salaried and Self-employed

    To check Home Loan eligibility, you may look at the following information:

    1] For salaried individuals –

    • The individual should be a citizen of India
    • Should have three years of working experience
    • The CIBIL Score should be above 750
    • Minimum age of 18 years and maximum of 60 years (may vary)
    • Minimum income varies from bank to bank

    2] For self-employed individuals –

    • The individual should be a citizen of India
    • Current business should be in the running for a minimum of 5 years
    • The CIBIL Score should be above 750
    • Minimum age 18 years and maximum 65 years

    What are the reasons for considering a Home Loan?

    A Home Loan is the best option for individuals wanting high funding at low-interest rates for their home purchase. These are quite popular and have numerous merits. Let us have a look at the key benefits of taking a Home Loan:

    • Higher Loan Amount: One can easily avail a higher loan amount for their house purchase. As the value of property varies with the market price.
    • Low-interest rate: Here, the interest rates are considerably low in comparison to other types of loans.
    • Long repayment period: The repayment period can be as long as 20 years, which reduces the financial burden of the borrower.
    • Simple eligibility and Easy application: Taking up a Home Loan has minimal eligibility criteria and the application procedure is also easy.

    Documents Required for Home Loan

    A Home Loan is an easy and convenient way to meet your high funding requirement. It offers a range of benefits to the borrower who needs a higher loan amount for a home purchase. It is a popular form of loan which provides high funding at low-interest rates with long repayment tenure.

    If you want to apply for a Home Loan, you should know about the documents required for it. Below mentioned is the ultimate checklist of the required documents:

    For individuals with a salary:

    1. Identity proof; PAN card, Aadhaar Card, Voters ID Card, driving license, etc
    2. Residential proof; Aadhaar Card, Voters ID Card, driving license, utility bills, PAN Card, etc.
    3. Documents of property
    4. Income; pay slip for the preceding three months
    5. Consistency proof in the job; Employment certificate
    6. Bank account statement; statement of the salary account for the last six months

    For self-employed individuals:

    1. Identity proof; PAN card, Aadhaar Card, Voters ID Card, driving license, etc
    2. Residential proof; Aadhaar Card, Voters ID Card, driving license, utility bills, PAN Card, etc
    3. Proof of the ownership of residence; Documents of property, Utility bills, etc
    4. Certificates of professional degree (in case of professional)
    5. Address of the office with ownership evidence; documents of the property with maintenance bills
    6. Evidence of continuity; tax registration certificate, company’s registration license
    7. Income proof; preceding three years’ income tax returns verified by a chartered Accountant, audited balance sheet with tax report
    8. Bank account statement; one-year balance sheet of both savings and current account

    Conclusion

    Deciding to borrow a Home Loan is not as simple as it sounds. It is a crucial step that one takes to finance their dream house. Therefore, proper planning is a must when taking up a Home Loan. If you comply with all the abovementioned requirements, you might get a lowest housing loan interest rate. We Hope the article was informative and helpful.

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