Know If You Can Avail A Home Loan

Having a house is a cherished dream for many of us. For the youth, it is a matter of self-esteem to purchase their first house, whereas for middle-aged people, buying a bigger house is a way to improve their standard of living. Lots of housing plans and easy disposal of home loans support you to make this dream into reality.

A home loan is an instrument which helps you to buy the house of your dream by giving you access to the necessary funds at the right time. Getting a housing loan is simple for everyone– be it salaried people, self-employed businessmen or professional.

Home Loan Eligibility
	Self-employed Professionals	Self-employed Individuals or businessmen	Salaried Individuals
Key requirement	Professional qualification and practice, for example, engineers, architects, chartered accountants, doctors.	Any individual who files income tax returns regularly	Permanent employment in government organisations or reputed companies
Age	Above 24 years up to 60 years

 

Criteria for a home loan

The general requisites for getting loans, irrespective of whether you are salaried or self-employed, include stable earnings and a strong credit profile. Your incomes reflect your capability to repay the loan, while your credit profile signifies your inclination and attitude to repay loans on time.

Following are the documents needed for processing home loans in India:

Documents to be submitted by salaried individuals

Salaried people are usually required to provide the following documents:

·         Salary slips of the last past three months.

·         Bank account statements including salary account details, of the past six months

·         Latest income tax return filings.

·         Letter of employment in case the tenure in the present job is less than a year.

Documents for self-employed people

Business people and self-employed professionals require to submit documented proof of their financial standing. These documents include:

·         Income tax returns along with the income of the last three financial years.

·         Balance sheets and income details with schedules and annexure accredited by auditors.

·         Current account statements of the business entity and savings account statements of the individual of the past six months.

·         Details of current loans of both – the individual and the business, including the unpaid amount, payments, and security.

·         Education qualification and professional practice certificates copies.

Besides these documents, all housing loan applicants – whether salaried or self-employed –  you require to submit KYC documents consisting of address and identity proof, along with property linked documents, which may differ subject to the type of property that the applicant desires to buy. Details of documents required can be found on the loan app of the bank.