A Home loan is a credit facility provided by Banks, housing finance companies and NBFCs to buy or construct a home by keeping the house as collateral.
Most of the banks finance loans up to the maximum limit of 90% of the property’s value, against the mortgage of the underlying house as security.
The documents required for home loan application are identity proof, address proof (bank statement, salary slip) , along with property documents (sale deed, past sale deed, house tax receipt).
Home loan documents list may vary across banks & NBFCs. Documents required for home loan application by Salaried and Self-Employed are different.
Home Loan Interest rates range from 6.50 % to 20 %. You can avail of the lowest rates on home loans if you are an existing bank customer or working with top corporations. Apart from the interest rate, banks also charge processing fees and penalty fees for pre-payment, foreclosure, and late payment.
The minimum salary required to avail of a Home loan is Rs.25000. The minimum salary requirement for every bank and NBFC is different; Rs.25000 is generally required by Banks.
Documents required for Home Loan while the property is under construction are Identity proof, address proof and Builder-Buyer Agreement, receipts of Payment made, allotment letter.