Home loans are becoming increasingly popular in India, as they offer a great way to finance a home purchase at an affordable Home loan interest rate. However, before you can benefit from a home loan, it’s important to understand the various aspects of the loan and the associated documents required to apply for Home loan.
Eligibility to Apply for Home Loan
The home loan provides a low home loan interest rate, and To apply for a home loan is a good option for salaried people. Here are the eligibility requirements:
- Income: The minimum salary for a home loan for salaried borrowers is at least Rs. 20,000 per month for tier 1 cities residents of Delhi, Mumbai, and other cities around Rs 15000.
- Age: The salaried applicants’ age to apply for a home loan should be between 18 years and not above 60 years when the loan matures.
- Education: The minimum educational qualification of the applicant should be a Bachelor’s degree if the applicant is working with a private company and a Master’s degree if the applicant is working with a government or public sector undertaking.
- Employment Status: The applicant should be employed with a reputed MNC, private, or government company to get a loan at a good Home loan interest rate.
Documents Required to Apply for Home Loan
The checklist of documents required to apply for a home loan for a salaried person is as follows:
• Duly filled and signed home loan application form along with 3 recent passport-size photographs
• PAN Card is mandatory for loan applications above Rs. 10 Lakhs
• Proof of identity: PAN Card/ Passport/ Voter ID/Driver’s License/ Aadhaar Card
• Proof of residence: Passport/ Voter ID/Driver’s License/ Aadhaar Card/ Ration Card/ Registered Rent Agreement
• Income proof: Last 3 months’ Salary Slips, 6 months Bank Statements, latest 1 year’s Form-16, and Income Tax Returns
• Signature proof and proof of educational qualifications
• All the property-related documents like an approved plan, sale deed, title, etc. (whichever is applicable)
• If you have acquired any previous loan, then you will also need to submit its loan account statement for the last 1 year along with the sanction letter
These documents are important components of the home loan application process. It is essential to provide accurate and updated documents and information to the lender to ensure the smooth processing of the loan and quick disbursal.Benefits to Apply for Home Loan
There are a lot of features and benefits of home loans for salaried individuals. Here are some of the common features and benefits for you to apply for home loan:
1. Low-Interest Rates: Home loan interest rates for salaried individuals usually come with lower rates than other types of loans. You can save money on interest by borrowing from a home loan provider.
2. Tax Benefits: Home loans for salaried individuals also come with tax benefits. You can reduce your tax liability by taking advantage of the tax benefits of a home loan.
3. Flexible Repayment Terms: Home loans for salaried individuals are usually provided with flexible repayment terms and low Home loan interest rates. You can choose a repayment plan that suits your budget.
4. Easy Application Process: Home loans for salaried individuals usually have an easy application process. You can apply for a low home loan interest rate loan without having to deal with complex paperwork.
5. Loan Tracking: Home loans for salaried individuals also come with tracking. It means that you can check your loan and home loan interest rate balance either online or offline through any of the following ways: through the loan tracking page, through net banking, through the mobile of the loan provider, by calling the home loan customer care number of the bank, through SMS, or your loan statement.
Conclusion
Home loans can provide a great way to finance a home purchase. However, it is important to fully understand the loan terms, eligibility criteria, and associated documents to ensure you make the right decisions when applying for a home loan. With this information, you now know to make an informed decision to apply for home loan in India.
