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Home Loan

Major benefits & Key features of Home Loan

To address the lengthy procedures and time needed in sanctioning of Home Loans, we have come up with the INSTANT HOME LOAN option. In this we help you get a pre-approved Home Loan. With pre-approved Home Loans, you get instant loan approval. This type of instant housing loan is approved well before you finalize your property. Some of the benefits of home loans are, Property prices tend to rise over a period of time. Hence, it is always better to buy a property as early as possible.

Availing a Home Loan to acquire a property rather than waiting to accumulate the money for making the purchase later makes more sense as this helps one overcome the issue of rising property prices while in the process saves one from buying the same property at a much higher price at a later date. Taking a home loan also ensures that the money which was going towards paying rent now goes towards the Home Loan EMI.


What are the Tax Benefits on Home Loans?

• The Government of India offers various tax benefits on the repayment of the Principal as well as Interest on Home Loans. For instance, under Section 80C of the Income Tax Act of 1971, an individual can claim a deduction the Principal Amount repaid in a given financial year. Similarly, the individual is also entitled to a deduction, on the interest paid towards the Home Loan in the same financial year.

What are the Terms of Repayment?

• Home Loan is possibly one of the only loans wherein you can enjoy exceedingly long repayment tenures ranging from 10 years to 30 years at a stretch. The extended tenure can contribute largely in reducing your EMI outgo per month, thus making it fairly feasible for you to avail the Home Loan and enjoy its benefits. Also, if you are sure of a consistent rise in your income, you can even opt for a Step-up Repayment Plan, wherein your Home Loan EMI will keep increasing as time progresses. This will help you in repaying your loan faster, while also saving on the overall interest outgo.

Is a Home Loan buying better than Renting?

• When you say you are saving up to buy the latest phone in the market, it often makes sense as you can save the amount over a span of 2-3 months. However, the same cannot be said for saving up to buy a home. A residential property often costs lakhs of rupees, a sum which cannot be saved by simple efforts. A better way is to opt for a Home Loan instead. In this case, you can gain access to the requisite sum of money instantly and use it for purchasing on building the home of your dreams, while putting the otherwise saved money towards your EMI. Trust us, this is a complete win-win situation, and that too for more than one reasons.

What are the eligibility criteria for Home Loan?
  • Any salaried, self-employed or businessperson with Indian nationality is eligible to apply for a home loan.
  • Under the RBI regulations, the Payment of the housing loan by NRIs can only be made by remittances from abroad through normal banking channels or through NRE account/NRO account or out of rental income derived from the impugned property. The amount must be payable in Indian Rupees only.
  • You should have a regular source of income for timely repayment of the loan. Your net monthly income should be equal or more than Rs. 25,000. To be eligible for home loan your fixed obligations like current loan EMI, rent etc should not exceed 45%-50% of your monthly income.
  • To be eligible for home loan You must be aged 21 years or above.
  • Your professional stability and savings history will help in quick loan approval.
  • Ensure that you do not have bad credit history for at least the three months prior to applying for a home loan.
  • If you are a salaried professional, about 40% of your monthly gross income can be considered as your monthly EMI against the loan.
  • For self-employed individuals, profit earned by you majorly determines the home loan value you are eligible for.
What Documentations are required for Home Loan?
  • 1. Age Proof: Passport, Driving License, Life Insurance Policy, Birth Certificate, PAN Card, School Leaving Certificate.
  • 2.Identity Proof: Passport, Driving License, PAN Card, Voter's ID.
  • 3.Residence Address Proof: Utility Bill, Bank Statements, Property Registration Documents, Property Tax Receipt, Voter's ID.
  • 4.Office Address Proof: Employee ID Card/Appointment Letter/Letter from employer on office letterhead.
  • 5.Income Proof for Salaried Individuals: Last three months’ salary slip and appointment letter/yearly increment letter and certified true copy of Form 16.
  • 6. Income Proof for Self-employed Individuals: Last 2 years of IT returns with supportive documents, Business profile on letter head, Registration certificate for business commencement.
  • 7. Income Proof for NRIs: Pay slips of last 6 months along with employment stability documents such as appointment letter/previous employment history.
  • 8.Bank Statements for Salaried Individuals: Bank statement for the last 6 months from the salary A/C.
  • 9. Bank Statements for Self-employed Individuals: Operative current account statement for 6 months, also, if any, CC/OD facilities taken corresponding bank statements for 6 months to be submitted.
  • 10. Bank Statements for NRI Applicants: Overseas salary account for 6 months and Indian NRE/ NRO account statements for 6 months to be provided.
  • 11.Credit Report for NRI: NRI applicants have to submit Credit Report of their current country of residence wherever it is applicable as per Tata Capital norms.
  • 12.Details of Existing Loan: Existing loan details should be provided through bank statements.
  • 13.Processing Fee Cheque: To be issued from the salary account for Salaried customer or the business Account in case of Self-Employed customer.
  • 14.Only Aadhaar card is an added one for KYC document