Home Loans: Types, Eligibility and Documents Required

In India, there are several kinds of home loans that people can scout for. Each of these loans requires the seeker to be acquainted with the home loan eligibility criteria and the documents needed. Here, we will talk about that.

What Are Some Of The Different Types Of Home Loans?

1. Home Purchase Loan

When you want to purchase a new or pre-owned home, you seek this housing loan. Such a loan can be availed from various banks. So, it would help if you researched the banks that offer such loans.

2. Home Expansion Loans

When you want to expand your home, this loan can be availed at your comfort. So, if you wish to add a new room to the home or create a bathroom, home extension loans will help.

3. Home Improvement Loans

If you want to get a renovation or massive repair done in your home for its improvement, then taking home renovation loan can help. Construction of overhead water tanks and electrical renovation fall into this category.

4. Land Purchase Loan / Plot Loan

This is usually a flexible idea as most banks offer Plot loan conveniently to people. The purchaser may save funds and create a home whenever they have financial stability. Some banking institutions offers up to 85% of land cost as a loan.

5. Home Conversion Loans

If you have already bought a home but wish to move to a new property, you can opt for these home loans. All you need to do is transfer the existing loan to the new house. By doing this, a borrower can fund the purchase of new house & need not repay the previous home loan.  But beware, as this loan may be a bit pricier than others.

What Are The Important Eligibility Criteria For The Home Loan?

• A maximum loan term of 30 years is available.
• The age limit for salaried people is between 21 to 65 years.
• For self-employed individuals, the age limit is nearly 21 to 65 years.
• Your minimum salary must be Rs.10,000 per month.
• Your maximum business income must be Rs.2 lakhs per annum.
• Existing Age and The Remaining Working period: Age will play a dominating factor.
• The present and future income both play critical roles.
• Both the past and present credit history and score count.

What Are The Documents Required For The Loan?

Here are the documents required for a home loan:

1. Property Document

• NOC from the housing society or builder.
• Detailed calculation of the construction cost.
• Occupancy Certificate
• Possession Certificate and land tax receipt from the land.
• Allotment Letter or stamped agreement of sale.

2. Identity Proof

• Voter ID
• Adhaar Card
• PAN Card
• Driving License
• Passport

3. Address Proof

• Electric bill
• Phone bill
• Water tax
• Post-paid mobile bill
• Any identity proof document with a permanent address
• Property tax receipt

4. Passport Size Photograph

The Bottom Line

Use a home loan EMI calculator if you want additional help in understanding whether you will be able to afford it in the first place. Otherwise, this blog is all set to come to your rescue when you want to know what to do next. So, why keep waiting? Standard Chartered Bank offer up to Rs 35 Cr Home Loan at attractive interest rates. Check out the home loan eligibility & apply for the same today!