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8. Housing Loan

 
Concept

  • A home loan is an amount of money that an individual borrows from a bank or financial institution at a certain rate of interest to be repaid in the form of EMIs every month.
  • The property is taken as a security by the bank for the Home Loan.
  • The property can either be commercial or personal in nature.
  • When the borrower cannot pay the dues, the lender will possess all the legal rights to recover the outstanding loan amount by sale of the property in question.
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Types of Home Loans
 
  • 1.  Home Purchase Loan:
  • This is the loan that an individual takes for purchasing a home.


  • 2.  Home Improvement Loan:
  • This loan covers expenditure related to repairs of your home or even renovation.


  • 3.  Home Construction Loan:
  • This loan comes in handy when you are building a new house.


  • 4.  Land Purchase Loan:
  • Someone wishing to buy a plot of land for constructing his/her own house can avail this loan.


  • 5.  Home Extension Loan:
  • This is the loan that an individual should apply for when they want to add another room, garage, bathroom, kitchen or another floor to their home.


  • 6.  Joint Home Loan:
  • These are loans taken by two people or even more. For instance, spouses can apply for joint home loans.


  • 7.  Home Loan Balance Transfer:
  • You can use this mechanism to switch your outstanding loan amount to a different lender with better terms and conditions and lower interest.


  • 8.  Top Up Home Loan:
  • This kind of loan helps you borrow some more money above the outstanding loan amount


Documents Required

  • KYC documents
  • Latest passport-sized photographs
  • Identity Proof: PAN Card, Aadhaar Card, Passport, Driving License, etc.
  • Address Proof: Passport, Voter’s ID card, driving license, utility bills, etc.
  • For Salaried Individuals : Form 16 and Pay slip of last 6 months and Last 3 years’ Income Tax Returns
  • For Self Employed Individuals : Last 3 years’ Income Tax Returns and Audited Financial Statements
  • Last 1 years’ bank statement
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Property Documents :

  • NOC from Society/Builder
  • A detailed estimate of the cost of construction of the house
  • Registered Sale Deed, Allotment Letter or Stamped Agreement of Sale with the Builder (original document)
  • Occupancy Certificate (in case of ready-to-move-in properties)
  • Property Tax Receipts, Maintenance Bills and Electricity Bills
  • Receipts of the advance payments made towards the purchase of flat (original document)
  • An approved copy of the building plan (key plan/floor plan in case of purchase of flats)
  • Original of the land tax paid receipt and possession certificate as issued by the revenue authority
  • Payment receipt or bank account statements showing payments made to the Builder or Seller