Buying a home is the biggest purchase that you will ever make in your life. To simplify the purchase, banks and NBFCs offer versatile home loans to eager house buyers. These borrowings carry certain restrictions and qualifying criteria.
Home buyers are often confused while applying for a home loan. To simplify the process for them, we have presented a simple guide of essential documents and eligibility criteria.
Who is Eligible?
Several banks and NBFCs have versatile eligibility criteria. General eligibility criteria is as follows-
- Any person, proprietor, partner, partnership entity or group, corporate entity and other associated parties are eligible to apply for house loan.
- Builders and land developers are also eligible to apply.
Once you are eligible, you can fill the application and then be ready to submit the required mandatory documents.
What are the documents required?
The list of documents to be submitted varies according to applicant’s profile. Such documents vary according to the income profile of the applicant.
List of documents for salaried individuals
- 3 Months’ salary slips
- Salary certificate
- Form No-16
- Copies of bank pass books, bank statement for last 6 months, and key account details.
- Company profile
List of Documents for business owners
- Last 3 years income tax return files
- Last 3 years balance sheet, P&L account copies duly signed and verified by chartered accountant
- Brief on business profile
- Bank statement for past 1 year
- Other business related statements required by loan sanctioning committee
What is the Eligibility Criteria?
After gathering the required documents, you will still require to meet the following eligibility criteria to get the loan sanctioned.
- Valid KYC documents of applicants and co-applicants
- Proof for continuity of income
- Clean loan repayment and credit history
- Technical and legal clearance for the property to be held as collateral
- References and witnesses
After fulfilling the eligibility criteria, your loan application will become valid for processing.