Home Loan

HOME LOAN

Best DSA in Delhi NCR for Home Loan

Apnabusinessbadhao.com provide Home Loan from 60+ banks and NBFCs. For many Indian households, having a home of their own is a fundamental goal. It symbolizes not only a monetary investment but also stability, emotional security, and a feeling of accomplishment. But becoming a home-owner can be difficult, particularly in light of the escalating cost of real estate. This is where home loans come into play, making the goal of owning a house a reality. A home loan can be described as a loan provided by banks and financial institutions that use the property as collateral.

Different Types of Home Loans Are Available:

In Home Loan in Delhi NCR, different types of loans for homes are offered to meet the diverse needs of people:

• Fixed Rate Home Loans: The interest rate remains the same throughout the entire loan period.
• Floating Rate Home Loans: The rate of interest changes based on market conditions.
• Home Construction Loans: For those who wish to build a house on land. Instead of purchasing a home, many people would rather build their own. Under such circumstances, the age of the property, the total cost of construction, and any other fees determine the loan amount. The ability to accept the full loan amount at once or in installments as needed is an additional advantage.
• Home Improvement Loans: For repairs and renovations. A home renovation loan can be used to remodel your property. It can be used for a variety of purposes, including repairing flaws, painting, updating home interiors, waterproofing and much more.
• Balance Transfer Loans: Transfer existing loans from one institution to another for better conditions.
• Top-Up Loans: Additional amount on a home loan that is already in place.

Home loans in India are designed to help individuals and families purchase, construct, or renovate their homes. To ensure that borrowers can comfortably repay the loan, lenders have set certain eligibility criteria.

Here are some key aspects of a home loan:

Principal: This is the initial amount of money borrowed to purchase the home.

Interest: The principal cost of borrowing, usually stated as an Annual Percentage Rate (APR). Fixed interest rates remain constant for the course of the loan, while variable interest rates fluctuate in line with market rates.

Down Payment: The down payment that the borrower makes for a house; this amount is typically stated as a percentage of the overall cost of the home. Better loan terms are frequently obtained with a higher down payment.

Loan Term: The duration over which the loan is repaid. Common terms include 15 years, 20 years, and 30 years.

Monthly Payments: The borrower pays consistent, often monthly, principal and interest-bearing payments known as EMIs (Equated Monthly Instalments). The principal is deducted from each payment as the loan sum falls over time.

Amortization: This is a reference to the loan principle being repaid gradually over time. The portion of each monthly payment that goes toward principal and interest is displayed on an amortization schedule.

Collateral: The house itself acts as loan collateral. The lender may foreclose on the property and sell it to recoup the loan balance if the borrower defaults on payments.

Eligibility Criteria

• Applicant must be between 21 to 65 years
• Salaried or self employed
• Annual income
• Collateral security
• Assets, financial stability and occupational continuity
• Residence status (Indian or NRI)

Note: This is an indicative list that may change based on your actual loan application.

Reasons of Home Loan Rejection

Some of the home loan rejection reasons are given below:

1. Unpaid dues and other ongoing debts
2. Applicant’s address present on the defaulter’s list
3. Applicant’s age does not come within the eligible age range
4. Credit score below 600
5. Multiple rejected loan applications
6. Frequent job change
7. Faulty repayment of ongoing debts
8. Absence of required documents

List of Documents Required for a Home Loan:

When applying for a home loan in India, borrowers must submit a variety of documents to prove their identity, income, and the legality of the property they intend to purchase. Here is a comprehensive list of the documents typically required:

1. Identity Proof (Any one of the following)

   – Aadhaar Card

   – PAN Card

   – Passport

   – Voter ID Card

   – Driving License 

– Government-issued ID card (for government employees)

2. Address Proof (Any one of the following)

   – Aadhaar Card

   – Passport

   – Voter ID Card

   – Utility bills (Electricity bill, Water bill, Gas bill)

   – Ration Card

   – Rent agreement with registered deed

   – Property tax receipt

   – Driving License

3. Age Proof (Any one of the following)

   – Birth Certificate

   – Passport

   – School Leaving Certificate

   – PAN Card

   – Aadhaar Card

   – Voter ID Card

4. Income Proof:

   For Salaried Individuals:

     – Last 3 to 6 months’ salary slips

     – Latest Form 16 or Income Tax Return (ITR) of the last 2 years

     – Bank statements of the last 12 months (salary account)

     – Employment certificate from the employer

   For Self-Employed Individuals:

     – Income Tax Returns of the last 2 to 3 years with computation of income

     – Profit and Loss (P&L) statement and Balance Sheet of the business, audited by a CA

     – Bank statements of the last 12 months (business account & saving account)

     – Business registration certificate or trade license

     – Proof of business existence (for the last 3 years)

     – Office address proof (rent agreement, utility bill, or ownership documents)

5. Property Documents

   – Property Title Deed: Legal document that shows the ownership of the property.

   – Sale Agreement: Agreement between the buyer and seller detailing the terms and conditions of the sale.

   – NOC from Builder or Society: A No Objection Certificate from the builder or housing society.

   – Encumbrance Certificate: Shows that the property is free from any legal liabilities or mortgages.

   – Property Tax Receipts: Latest property tax payment receipts.

   – Approved Building Plan: Copy of the approved building plan from the Municipal Corporation or Relevant Authority.

   – Allotment Letter: If the property is being purchased from a builder, the allotment letter is required.

   – Possession Certificate: Issued by the builder after the property is completed and ready for possession.

   – Occupancy Certificate: Issued by the local municipal authority confirming that the building is ready for occupation.

6. Employment Proof:

   – For Salaried Individuals:

     – Employment Offer Letter/Appointment Letter

     – Employment Contract

     – ID card issued by the employer

   – For Self-Employed Individuals:

     – Professional degree certificate (for professionals like doctors, architects)

     – Business address proof (utility bills, rent agreement)

7. Photographs

   – Recent passport-sized photographs (2 to 4 copies)

8. Existing Loan Details (if any)

   – Details of any existing loans or liabilities, including loan statements, outstanding balance, and repayment history Sanctioned Letters.