Although availing a quick home loan is comparatively easier owing to the competition among several financial intuitions, borrowers have to comply with the terms and conditions to have the application approved.
Here is a checklist of all the essential formalities to avail a home loan in 2020 –
Documents
ID proof - Identification proof documents such as Voter’s ID card, PAN card, Aadhaar card, etc.
Property documents -
- NOC provided by the builder.
- Registered deed of sale.
- Occupancy certificate.
- Agreement of sale with the builder duly stamped.
- Tax receipts.
- A copy of the approved building plan issued by authorities.
- Advance payment receipts contributed towards the property.
- A report from an empanelled body stating that the standard valuation of the property.
Income proof documents
For salaried individuals -
- Last 2 months’ payslip.
- IT returns for the past 3 years.
- Form-16, along with a certified letter from the employer.
For self-employed applicants -
- License details of the respective business.
- Doctors and consultants required to provide a professional license.
- Registration certificate of the organisation.
- CA-attested Profit & Loss Account statement and Balance Sheet.
Some HFCs also require a guarantor where the documents of that individual shall also have to be submitted. A financial institution can even ask for more documents such as a letter of authority, a detailed list of all construction costs associated with the project.
Eligibility criteria
For salaried individuals -
- Age between 23 and 62 years.
- Work experience of minimum 3 years.
For self-employed applicants –
- Age between 25 and 70 years.
- Minimum business vintage of 5 years.
In addition to the above, both the above applicants need to hold a minimum credit score of 750 to be eligible for a housing loan.
