Home Loan: Eligibility, Documents
Everyone has a dream of buying their own house. But with the immense rise in properties, such a dream remains a dream only for some people. This is where a home loan comes to the rescue.
Eligibility Criteria for Home Loans
- Current Age and Loan Repayment Tenure: Your age has an important impact on your eligibility for a home loan. If you are younger, your chances of getting a home loan approved are better.
- Financial Profile: The consistency and amount of your earnings have a very good impact on determining how much you are eligible to borrow. Whether you are a salaried employee or self-employed, it is important to have a continuous income gain.
- Credit Score: A high credit score and clear recordings of repayment would assist you with fast-tracking approval for a loan.
- Other Financial Obligations: Most lenders check current liabilities like personal loans, credit card bills, car loans, etc., to judge whether the borrower has sufficient financial capacity to repay home loans.
Documents required for home loan
Photo Id Proof (Any One Required):
- PAN card
- Driving License
- Voters ID Card
- Passport
Residence Proof (Any One Required):
- Electricity Bill
- Ration Card
- Telephone Bill
- Employment Letter
- Passbook or Bank Statement with address
Proof of Age:
- PAN card
- Passport
- Birth certificate
- Driving license
- Bank passbook
- Mark sheet from 10th class
What is the list of documents for a Loan Guarantor?
- Liabilities Statement and Personal Assets.
- 2 photographs passport sized.
- Identify proof.
- Residence proof.
- Proof of business address.
- Signature identification from present bankers.
Documents needed for a self-employed applicant:
- Income Tax Returns (ITR) over the last three years for self-employed individuals.
- The Company/Balance Firm’s Sheet and Profit & Loss Account Statement (duly attested by a C.A.).
- Details on a Company’s License (or any other equivalent document).
- Professional Practice License (For Doctors, Consultants, etc.).
- Certificate of Registration of Establishment (For Shops, Factories & Other Establishments)
- Proof of Business Location.
- GST Registration and CIST Return (if applicable).
- Opinion report of Firm/Co. If loan is taken from financial Institutions.
- Business proof: Sales Tax Registration (if applicable).
- Proprietor- Gumasta License, UdyogAadhar, etc.
- Partnership- Pancard, Partnership deed and Trade License.
- LLP- Firm Registration, Certificate of Incorporation.
- Company- AOA, MOA, Certificate of incorporation.
- Business Address Proof- UdyogAadhar, Utility Bill, Agreement to rent for business, etc. (any one).
Documents needed for a salaried person:
You will need your employment contract or appointment letter if your current job is less than a year old.
- Salary slips- last 3months (or Salary Certificate).(If the salary does not contain bonus/incentives, etc., then salary slips of respective month where bonus/incentives are credited).
- Bank A/C Statement (Salary) for last 6 months.
- Form 16 - last 2 years (Part A & B)
- Employer Certificate, Appointment Letter, Increment Letter, Promotion letter (any one) duly Attested by employer.
- Copy of Employee I-Card.
- If Present job is less than 2 years, relieving letter from the last employer.
- In the case of a company, a list of Directors and Shareholders with their holdings is certified by a CA / CS. A partnership deed is required if the company entity is a partnership firm. The Company’s Memorandum and Articles of Association.
Conclusion
Understanding the documents required for a home loan and home loan eligibility for a salaried person will help improve and increase your chances of qualifying for a home loan. A few specific documents and eligibility requirements may vary depending on the type of loan type, lender, credit profile, etc.
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