Home Loan
Home Loan Eligibility Criteria for Salaried Employee
Home Loan Eligibility Criteria Salaried Employee Eligible Age (Min-Max) The applicant’s age should be minimum 24 years and maximum 60 years at the time of applying for a home loan if the applicant is a salaried employee. Eligible Income Salaried applicants should have a minimum monthly income of ₹25,000 per month in a metro city, and a minimum monthly income of ₹20,000 in other cities.
Minimum Loan Amount The salaried applicants can avail a Home loan starting from ₹100,000, based on their eligibility.
Maximum Loan Amount The salaried applicants can avail a Home loan up to ₹35 Crores, based on their eligibility.
Eligible City 180 Cities across India.
Co-applicant Not mandatory, but only immediate family members can apply as a co-applicant.
Employment The salaried employees should have a minimum of 2 years of total work-experience, and at least 6 months in the current company.
CIBIL Required (750-900)
Home Loan Criteria for Self-Employed Professionals
Home Loan Eligibility Criteria Self-Employed Professionals Eligible Age (Min-Max) The applicant’s age should be minimum 24 years and maximum 65 years at the time of applying for a home loan if the applicant is a self-employed professional. Eligible Income Self-employed applicants should have a minimum monthly income of ₹36,000 per month in a metro city, and a minimum monthly income of ₹30,000 in other cities. Minimum Loan Amount The self-employed applicants can avail a home loan starting from ₹100,000, based on their eligibility. Maximum Loan Amount The self-employed applicants can avail a home loan up to ₹35 Crores, based on their eligibility. Eligible City 180 Cities across India. Co-applicant Not mandatory, but only immediate family members can apply as a co-applicant. Employment The self-employed applicants should have a minimum of 5 years of turnover, before they can apply for a home loan. CIBIL Required (750-900)
Factors that decide an Applicant’s Eligibility for Home Loans SBI Home Loan Eligibility Criteria Eligibility Criteria: ICICI Home Loan Eligibility Eligibility Criteria: AXIS Bank Home Loan Eligibility If you are looking for a bank that offers fast service with less interest rate, this is the best option. It is very transparent and flexible in its eligibility criteria. Eligibility Criteria: Bajaj Finserv Home Loan Eligibility Criteria Eligibility Criteria: Citibank Home Loan Eligibility Criteria HDFC Bank Home Loan Eligibility Criteria Eligibility Criteria: IndusInd Bank Home Loan Eligibility Criteria Eligibility Criteria: Kotak Mahindra Bank Home Loan Eligibility Criteria Eligibility Criteria: PNB Housing Finance Ltd Home Loan Eligibility Eligibility Criteria: Standard Chartered Bank Home Loan Criteria Eligibility Criteria: Tata Capital Home Loan Eligibility Criteria Eligibility Criteria: Ways to Improve Housing Loan Eligibility Apart from these, having good relationship with the bank manager is an add-on. Every branch manager has discretionary rights to alter loan requirements. Strive to maintain a good financial track record, to enjoy home loan benefits. Can siblings take joint Home Loans in India? Yes, siblings are allowed to take joint loan from any bank for home loan. And with the help of this both can avail tax benefits under Income Tax Act section 80C. However, here are some of the points to be kept in mind while taking a joint loan with a sibling. Can a Home Loan be transferred completely to a co-borrower? The number of people, who are availing the advantages of the home loan, is increasing day by day rapidly. Many home loan borrowers are now preferring to go for a joint home loan options due to various benefits such as the benefit to avail higher loan amount, income tax benefits and many more to name a few. A co borrower is the person that shares the ownership of the home loan in an asset with you or group or individual. The factors such as credit rating and CIBIL scores are being taken in to the consideration as far as home loan joint application is concerned. However, there are certain eligibility rules and conditions that have to be satisfied that can be mentioned as follows. Home loan co-borrower and co-applicant is one and the same thing if we take a larger picture in the consideration because the person is sharing equal responsibility as far as the repayment is concerned. Hence, in special cases, the lender may consider to transfer the loan completely to a co-borrower. However, there can be some disadvantage in being a co-borrower in certain cases that can be discussed as follows. To avoid such cases, It is very essential that the home loan applicants are having separate legal liability agreement that has all the terms and conditions mentioned. The agreement should have stated and classified the liability of each and every party that is involved. The parties involved should execute the same on the legal stamp paper and should notarize it. Banks promote the co-borrowing as the same reduces the risk in terms of repayment of the loan. The bank can also insist in terms of getting the insurance as far as protection of repayment is concerned. It is essential for the borrower and co-borrower that they safeguard the loved ones by properly following terms & conditions as the future is quite uncertain and one should be ready to encounter any situation.
Every bank that offers loan will look into many criteria prior to sanctioning it. Among the long list of factors, few important ones are:
It’s a crucial aspect for home loan consideration. Unless the applicant is salaried and employed for at least 2 years in the current profession or if the applicant is self-employed with minimum 5 years of total earnings loan will not be processed.
The younger the applicant is there is more probability of getting loan. Most banks offer home loan for salaried employees only if they are between the age group of 20 to 60 years. However for self-employed this will change to 24 to 65 years.
Apart from the applicant’s company’s performance, individual credit rating has a lot of importance. Good credit rating will increases the chance of getting the loan with more flexibility on loan amount, EMI, tenure and interest rates. Default payment records, fraudulent tracks, and outstanding loan, will reflect negatively on the applicant, this could lead to bank’s cancelling the loan request or will charge high rate of interest.
If the applicant is working with an employer who has high reputation and impressive turnover, the credibility of the applicant will respectively increase. Being a part of reputed and high turnover companies is an asset for the applicant especially when it comes to applying for home loan.
For this factor, not just present status is considered, the past records of financial stability holds lot of value in deciding the eligibility for home loan. It is a key to success in all fields if you have good financial records, this can decide the interest rate percentage, loan amount and tenure when applying for loan.
SBI offers home loan only post thorough scrutiny of the applicant’s request. It has fast approval processes with minimal and easy documentation. The list for the same is here:
Criteria Salaried Self employed Age 18 years to 70 years 21 years to 70 years Income ₹120,000 p.a. ₹200,000 p.a. Loan Amount Offered ₹500,000 – ₹10,000,000 ₹500,000 – ₹20,000,000 Tenure 5 years – 30 years 5 years – 30 years Current Experience 2 years 3 years Documentation 1) Identity & residence proof 1) Identity & residence proof 2) Application form with photograph 2) Application form with photograph 3) Form 16 3) Education qualifications certificate & proof of business existence 4) Last 3 months salary slip 4) Business profile 5) Processing fee cheque 5) Last 3 years profit/loss & balance sheet 6) Last 6 months bank salaried credit statements 6) Processing fee cheque 7) Last 6 months bank statements
It is possible to get home loan with just 15-20 days from this bank if you have all necessary documentation and if you meet all criteria. This bank offers competitive pricing and also maintains transparent process.
Employment Type Eligibility Criteria Salaried Individuals Government employees or individuals in reputed companies.
Minimum Age: 24 years
Maximum Age: 60 years at the time of loan maturity Professionals Professionals – Doctors, Engineers, Dentists, Architects, Chartered Accountants, Cost Accountants, Company Secretary, Management Consultants only
Minimum Age: 24 years
Maximum Age: 65 years at the time of loan maturity Self Employed Individuals All tax filing individuals
Minimum Age: 24 years
Maximum Age: 65 years at the time of loan maturity
If you are looking for the home loan which has flexible rules when it comes to the repayment of the loan than Bajaj Finserv is the right choice for you. Bajaj Finserv offers the home loan with the advantage of part payment & fore closure. Following is the eligibility criteria for applying for the home loan through Bajaj Finserv:
There are two important factors when it comes to the eligibility for Bajaj Finserv home loans. First the applicant should be in the position to repay the loan. Secondly, the credit worthiness of the applicant which can be checked through the employer of the salaried applicant & through the business stability in case of self-employed & businessmen. Following is the eligibility criteria in terms of income for a salaried applicant:
City of Residence Minimum Income (Monthly) Thane, Delhi /NCR and Mumbai ₹60000 Chennai and Bangalore ₹45000 Pune, Ahmedabad, Hyderabad and Kolkata ₹45000 Coimbatore, Surat, Aurangabad, Vadodara, Jaipur & Nashik ₹35000
Citi bank offers the home loan at very competitive interest rate. They have 24*7 customer support for the assistance of home loan. Online application option is also available.
Eligibility Criteria:
HDFC bank is a global bank with the headquarters in Mumbai. The bank has been ranked in the top 100 Most Valuable Global Brands. HDFC is trusted name amongst the customers. The bank offers variety of home loans like new home loans, resale home loans & loans for constructing the home. HDFC offers the home loan with no hidden charges.
The bank is providing affordable home loan & the customer service is commendable. The repayment tenure of IndusInd bank is quite wide compare to other banks & financial institutes.
The process of home loan application is easy & hassle free when it comes to Kotak Mahindra bank. Approval of the loan is simple & loan amount can be disburse in 4-5 days. Online application option is also available.
Particulars Salaried Empldoyees Self-employed Professionals Age 21 – 60 years 21 – 65 years Income ₹480,000 per annum ₹480,000 per annum Repayment tenure 5 – 25 years 5 – 25 years Work experience 2 years 3 years
PNB has the housing finance section that caters to variety of needs when it comes to home loan. The name of the brand itself is a great proof of its expertise in housing finance. PNB has many different types of loan option available when it comes to home loan like home purchase loan, home construction loan, home extension loan, home improvement loan, home loans for NRIs etc.
Standard chartered is a global bank with the branches in 70 different countries across the globe. If you are looking forward for low finance home loan with less processing charges than this is one if definitely for you.
TATA capital is known to provide customize home loans to their customers depending upon the need of the customers. They have number of home loans including the home loan, home construction loan, home renovation loan etc. the range of repayment tenure is as wide as 30 years.
If husband and wife, any one of them is a co-borrower and both of them are paying the EMIs for the home loan, and because of the conflict, any one of them stops paying the EMI then the other borrower faces the problem.
In case if the prime borrower or co-borrower meets death, then the rest of the amount that has to be paid by the borrower, who is alive. It becomes the person’s responsibility to repay the amount and that can create a burden for the person.
if husband and wife are the borrowers of a home loan and the husband decides to inherit property to the parents or siblings and not to wife or let’s say he decides to equally distribute the property between parents and wife, the if a wife is not co-owner but just a co-applicant then it can create a huge trouble for her.
in the case of default, the home loan applicant assets can be at risk be it co-borrower of borrower.
Home Loans Interest Rates Comparison of Top Banks/NBFC (updated 28 Aug,2020)
| Banks/NBFC | Institution Type | Minimum Loan Amount | Maximum Loan Amount | Minimum Tenure | Maximum Tenure | Home Loan Interest Rates | Fees & Charges |
|---|---|---|---|---|---|---|---|
| Axis Bank | BANK | ₹3,00,000 | ₹500,00,000 | 1 Year | 30 years | 8.00% – 11% | Up to 1% (min of ₹10,000) + GST as applicable |
| Bajaj Finserv | NBFC | ₹20,00,000 | ₹350,00,000 | 10 Years | 20 years | Salaried: 8.85% – 10.30% | Up to 0.80% + GST as applicable |
| Self Employed: 9.25% – 11.15% | Up to 1.20% + GST as applicable | ||||||
| Citibank | BANK | ₹2,10,000 | ₹10,00,00,000 | 1 Year | 25 years | 8.00% – 16.00% | ₹10,000 + 0.20% of the Loan Amount + GST as applicable |
| DHFL | HFC | ₹1,00,000 | ₹30,00,000 | 1 Year | 30 years | 10% – 19.07% | ₹2,500 + GST as applicable |
| HDFC Bank | BANK | ₹1,00,000 | ₹10,00,00,000 | 1 Year | 20 years | 8.80% – 9.55% | Up to 0.50% or ₹ 3,000 (whichever higher) + GST as applicable |
| ICICI Bank | BANK | ₹5,00,000 | ₹3,00,00,000 | 1 Year | 30 years | 8.35% -9.10% | 0.5% + GST as applicable |
| IDFC | BANK | ₹10,00,000 | ₹10,00,00,000 | 1 Year | 30 years | Salaried: 8.90% – 10.35% | ₹10,000 to 0.20% of the Loan Amount + GST as applicable |
| Self Employed: 9.05% – 10.8% | |||||||
| Indiabulls | NBFC | ₹15,00,000 | ₹30,00,00,000 | 1 Year | 30 years | 8.80% | ₹10,000 to 1.00% + GST as applicable |
| IndusInd Bank | BANK | ₹1,00,000 | ₹1,00,00,000 | 1 Year | 30 years | 8.00% – 16.00% | ₹5,000 to 2% + GST as applicable |
| Kotak Mahindra Bank | BANK | ₹5,00,000 | ₹10,00,00,000 | 5 years | 20 years | 8.90% | 0 for online application; Offline application – Upto 1.25% + GST as applicable |
| LIC Housing | HFC | ₹1,00,000 | ₹10,00,00,000 | 1 Year | 30 years | 9.15% – 10.10% | ₹10,000 – ₹15,000 + GST as applicable |
| PNB Housing Finance Ltd. | HFC | ₹50,000 | ₹ 75,00,000 | 1 Year | 30 years | 9.00% – 12.50% | 1% + GST as applicable |
| Punjab National Bank | BANK | ₹1,00,000 | ₹500,00,000 | 3 Months | 30 years | 8.70% – 9% | 0.35% + GST as applicable (Min- ₹2,500/; Max- ₹15,000/) |
| Standard Chartered Bank | BANK | ₹10,00,000 | ₹35,00,00,000 | 1 Year | 25 years | 9.31% – 9.85% | Up to 1% + GST as applicable |
| State Bank of India | BANK | ₹5,00,000 | ₹200,00,000 | 5 years | 30 years | 9.10% – 9.45% | ₹10,000 + 0.20% + GST as applicable |
| Tata Capital | NBFC | ₹2,00,000 | ₹500,00,000 | 1 Year | 30 years | 8.8% – 11.25% | 0.5% + GST as applicable |
| Reliance Home Finance Ltd. | HFC | ₹1,00,000 | ₹10,00,00,000 | 1 Year | 30 years | 8.90% | Up to 2% + GST as applicable |
| Vastu Housing Finance Corporation Ltd. | HFC | ₹500,000 | ₹50,00,000 | 1 Year | 20 Years | 12.5% – 15.5% | Up to 2% + GST as applicable |
Home Loan Eligibility Criteria for Salaried Employee
Home Loan Eligibility Criteria Salaried Employee Eligible Age (Min-Max) The applicant’s age should be minimum 24 years and maximum 60 years at the time of applying for a home loan if the applicant is a salaried employee. Eligible Income Salaried applicants should have a minimum monthly income of ₹25,000 per month in a metro city, and a minimum monthly income of ₹20,000 in other cities.
Minimum Loan Amount The salaried applicants can avail a Home loan starting from ₹100,000, based on their eligibility.
Maximum Loan Amount The salaried applicants can avail a Home loan up to ₹35 Crores, based on their eligibility.
Eligible City 180 Cities across India.
Co-applicant Not mandatory, but only immediate family members can apply as a co-applicant.
Employment The salaried employees should have a minimum of 2 years of total work-experience, and at least 6 months in the current company.
CIBIL Required (750-900)
Home Loan Criteria for Self-Employed Professionals
Home Loan Eligibility Criteria Self-Employed Professionals Eligible Age (Min-Max) The applicant’s age should be minimum 24 years and maximum 65 years at the time of applying for a home loan if the applicant is a self-employed professional. Eligible Income Self-employed applicants should have a minimum monthly income of ₹36,000 per month in a metro city, and a minimum monthly income of ₹30,000 in other cities. Minimum Loan Amount The self-employed applicants can avail a home loan starting from ₹100,000, based on their eligibility. Maximum Loan Amount The self-employed applicants can avail a home loan up to ₹35 Crores, based on their eligibility. Eligible City 180 Cities across India. Co-applicant Not mandatory, but only immediate family members can apply as a co-applicant. Employment The self-employed applicants should have a minimum of 5 years of turnover, before they can apply for a home loan. CIBIL Required (750-900)
Factors that decide an Applicant’s Eligibility for Home Loans
Every bank that offers loan will look into many criteria prior to sanctioning it. Among the long list of factors, few important ones are:
It’s a crucial aspect for home loan consideration. Unless the applicant is salaried and employed for at least 2 years in the current profession or if the applicant is self-employed with minimum 5 years of total earnings loan will not be processed.
The younger the applicant is there is more probability of getting loan. Most banks offer home loan for salaried employees only if they are between the age group of 20 to 60 years. However for self-employed this will change to 24 to 65 years.
Apart from the applicant’s company’s performance, individual credit rating has a lot of importance. Good credit rating will increases the chance of getting the loan with more flexibility on loan amount, EMI, tenure and interest rates. Default payment records, fraudulent tracks, and outstanding loan, will reflect negatively on the applicant, this could lead to bank’s cancelling the loan request or will charge high rate of interest.
If the applicant is working with an employer who has high reputation and impressive turnover, the credibility of the applicant will respectively increase. Being a part of reputed and high turnover companies is an asset for the applicant especially when it comes to applying for home loan.
For this factor, not just present status is considered, the past records of financial stability holds lot of value in deciding the eligibility for home loan. It is a key to success in all fields if you have good financial records, this can decide the interest rate percentage, loan amount and tenure when applying for loan.
SBI Home Loan Eligibility Criteria Eligibility Criteria:
SBI offers home loan only post thorough scrutiny of the applicant’s request. It has fast approval processes with minimal and easy documentation. The list for the same is here:
Criteria Salaried Self employed Age 18 years to 70 years 21 years to 70 years Income ₹120,000 p.a. ₹200,000 p.a. Loan Amount Offered ₹500,000 – ₹10,000,000 ₹500,000 – ₹20,000,000 Tenure 5 years – 30 years 5 years – 30 years Current Experience 2 years 3 years Documentation 1) Identity & residence proof 1) Identity & residence proof 2) Application form with photograph 2) Application form with photograph 3) Form 16 3) Education qualifications certificate & proof of business existence 4) Last 3 months salary slip 4) Business profile 5) Processing fee cheque 5) Last 3 years profit/loss & balance sheet 6) Last 6 months bank salaried credit statements 6) Processing fee cheque 7) Last 6 months bank statements
ICICI Home Loan Eligibility Eligibility Criteria:
It is possible to get home loan with just 15-20 days from this bank if you have all necessary documentation and if you meet all criteria. This bank offers competitive pricing and also maintains transparent process.
AXIS Bank Home Loan Eligibility If you are looking for a bank that offers fast service with less interest rate, this is the best option. It is very transparent and flexible in its eligibility criteria. Eligibility Criteria:
Employment Type Eligibility Criteria Salaried Individuals Government employees or individuals in reputed companies.
Minimum Age: 24 years
Maximum Age: 60 years at the time of loan maturity Professionals Professionals – Doctors, Engineers, Dentists, Architects, Chartered Accountants, Cost Accountants, Company Secretary, Management Consultants only
Minimum Age: 24 years
Maximum Age: 65 years at the time of loan maturity Self Employed Individuals All tax filing individuals
Minimum Age: 24 years
Maximum Age: 65 years at the time of loan maturity
Bajaj Finserv Home Loan Eligibility Criteria Eligibility Criteria:
If you are looking for the home loan which has flexible rules when it comes to the repayment of the loan than Bajaj Finserv is the right choice for you. Bajaj Finserv offers the home loan with the advantage of part payment & fore closure. Following is the eligibility criteria for applying for the home loan through Bajaj Finserv:
There are two important factors when it comes to the eligibility for Bajaj Finserv home loans. First the applicant should be in the position to repay the loan. Secondly, the credit worthiness of the applicant which can be checked through the employer of the salaried applicant & through the business stability in case of self-employed & businessmen. Following is the eligibility criteria in terms of income for a salaried applicant:
City of Residence Minimum Income (Monthly) Thane, Delhi /NCR and Mumbai ₹60000 Chennai and Bangalore ₹45000 Pune, Ahmedabad, Hyderabad and Kolkata ₹45000 Coimbatore, Surat, Aurangabad, Vadodara, Jaipur & Nashik ₹35000
Citibank Home Loan Eligibility Criteria
Citi bank offers the home loan at very competitive interest rate. They have 24*7 customer support for the assistance of home loan. Online application option is also available.
Eligibility Criteria:
HDFC Bank Home Loan Eligibility Criteria Eligibility Criteria:
HDFC bank is a global bank with the headquarters in Mumbai. The bank has been ranked in the top 100 Most Valuable Global Brands. HDFC is trusted name amongst the customers. The bank offers variety of home loans like new home loans, resale home loans & loans for constructing the home. HDFC offers the home loan with no hidden charges.
IndusInd Bank Home Loan Eligibility Criteria Eligibility Criteria:
The bank is providing affordable home loan & the customer service is commendable. The repayment tenure of IndusInd bank is quite wide compare to other banks & financial institutes.
Kotak Mahindra Bank Home Loan Eligibility Criteria Eligibility Criteria:
The process of home loan application is easy & hassle free when it comes to Kotak Mahindra bank. Approval of the loan is simple & loan amount can be disburse in 4-5 days. Online application option is also available.
Particulars Salaried Empldoyees Self-employed Professionals Age 21 – 60 years 21 – 65 years Income ₹480,000 per annum ₹480,000 per annum Repayment tenure 5 – 25 years 5 – 25 years Work experience 2 years 3 years
PNB Housing Finance Ltd Home Loan Eligibility Eligibility Criteria:
PNB has the housing finance section that caters to variety of needs when it comes to home loan. The name of the brand itself is a great proof of its expertise in housing finance. PNB has many different types of loan option available when it comes to home loan like home purchase loan, home construction loan, home extension loan, home improvement loan, home loans for NRIs etc.
Standard Chartered Bank Home Loan Criteria Eligibility Criteria:
Standard chartered is a global bank with the branches in 70 different countries across the globe. If you are looking forward for low finance home loan with less processing charges than this is one if definitely for you.
Tata Capital Home Loan Eligibility Criteria Eligibility Criteria:
TATA capital is known to provide customize home loans to their customers depending upon the need of the customers. They have number of home loans including the home loan, home construction loan, home renovation loan etc. the range of repayment tenure is as wide as 30 years.
Ways to Improve Housing Loan Eligibility Apart from these, having good relationship with the bank manager is an add-on. Every branch manager has discretionary rights to alter loan requirements. Strive to maintain a good financial track record, to enjoy home loan benefits.
Can siblings take joint Home Loans in India? Yes, siblings are allowed to take joint loan from any bank for home loan. And with the help of this both can avail tax benefits under Income Tax Act section 80C. However, here are some of the points to be kept in mind while taking a joint loan with a sibling.
Can a Home Loan be transferred completely to a co-borrower? The number of people, who are availing the advantages of the home loan, is increasing day by day rapidly. Many home loan borrowers are now preferring to go for a joint home loan options due to various benefits such as the benefit to avail higher loan amount, income tax benefits and many more to name a few. A co borrower is the person that shares the ownership of the home loan in an asset with you or group or individual. The factors such as credit rating and CIBIL scores are being taken in to the consideration as far as home loan joint application is concerned. However, there are certain eligibility rules and conditions that have to be satisfied that can be mentioned as follows. Home loan co-borrower and co-applicant is one and the same thing if we take a larger picture in the consideration because the person is sharing equal responsibility as far as the repayment is concerned. Hence, in special cases, the lender may consider to transfer the loan completely to a co-borrower. However, there can be some disadvantage in being a co-borrower in certain cases that can be discussed as follows. To avoid such cases, It is very essential that the home loan applicants are having separate legal liability agreement that has all the terms and conditions mentioned. The agreement should have stated and classified the liability of each and every party that is involved. The parties involved should execute the same on the legal stamp paper and should notarize it. Banks promote the co-borrowing as the same reduces the risk in terms of repayment of the loan. The bank can also insist in terms of getting the insurance as far as protection of repayment is concerned. It is essential for the borrower and co-borrower that they safeguard the loved ones by properly following terms & conditions as the future is quite uncertain and one should be ready to encounter any situation.
If husband and wife, any one of them is a co-borrower and both of them are paying the EMIs for the home loan, and because of the conflict, any one of them stops paying the EMI then the other borrower faces the problem.
In case if the prime borrower or co-borrower meets death, then the rest of the amount that has to be paid by the borrower, who is alive. It becomes the person’s responsibility to repay the amount and that can create a burden for the person.
if husband and wife are the borrowers of a home loan and the husband decides to inherit property to the parents or siblings and not to wife or let’s say he decides to equally distribute the property between parents and wife, the if a wife is not co-owner but just a co-applicant then it can create a huge trouble for her.
in the case of default, the home loan applicant assets can be at risk be it co-borrower of borrower.
Home Loan Documents Required Home Loans help to fullfil all housing finance related needs. But to do so, they need certain documents to be sure of the borrower. Also, home loans are secured loans. As such, the lenders need to have the property documents before they approve the loan. Different lenders have their own specific requirements, criteria and documents required. Here is a complete list of the documents required for a home loan. b. For Self-Employed Individual: IT returns for last 2 years along with computation of income tax for past 2 years certified by a Chartered accountant c. For Self-Employed Non- Professionals: IT returns for last 3 years along with computation of income tax for past 2 years certified by a Chartered accountant
List of the Common Documents Required for the Home Loan b. For Self-Employed Individual: IT returns for last 2 years along with computation of income tax for past 2 years certified by a Chartered accountant c. For Self-Employed Non- Professionals: IT returns for last 3 years along with computation of income tax for past 2 years certified by a Chartered accountant
Documents Required for Salaried Individual
Documents Required for Self-Employed -Professionals
Documents Required for Home Loan Balance Transfer There are many reasons why people transfer their home loan from one financial institute to another. Most prominent reason is lower interest rate which saves cost of borrowing. You must identify the objective of transferring the loan before actually doing it. The process of home loan balance transfer is not much different than applying for the home loan. That is the reason why documentation part is very important for transferring the home loan from one financial institute to another. The process not just includes the documentation but also the validation of documents. The documents are r validated by the bank or NBFC that you apply to. One has to accept that the reliability of a person for repayment is decided from the documents that the person has to offer. The documents of the applicant will describe if he / she will able to repay the loan amount or not. The prerequisite key documents for home loan transfers are the following: Ability to reimburse the credit takes factors, for example, age, capabilities, pay, and life partner’s salary, number of dependents, resources, reserve funds history, liabilities, dependability and persistence in occupation in thought. The candidate is called as the individual and the co-candidates can be candidate’s mate, guardians, or even real youngsters. The co-candidate requires not be co-proprietor of house, but rather co-proprietor of property should be the co-candidate. In Floating-rate of intrigue credits any adjustment in the base rate will be directly affecting financing cost of the Home Loan.Purpose Documents Proof of both identity and residence (any 1) 1. Valid Passport 2. Voter ID Card 3. Aadhaar Card 4. Valid Driving Licence Proof of income 1. Last 3 months’ Salary Slips 2. Last 6 months’ Bank Statements, showing salary credits 3. Latest Form-16 and IT returns Other documents 1. Employment Contract / Appointment Letter in case current employment is less than 1 year old 2. Last 6 months’ Bank Statements showing repayment of any ongoing loans 3. Passport size photograph of all the applicants / co-applicants to be affixed on the Application Form and signed across 4. Cheque for processing fee favoring ‘The New bank’ Documents for a Balance Transfer Loan 1. A letter on the letter head of the existing lender stating the list of property documents held by them 2. Latest outstanding balance letter from your existing financial institution on their letter head 3. Photocopy of the property documents (including Own Contribution Proof) Additional Documents for Loan Takeover / Transfer Salaried Self Employed Loan statement (loan track) and list of property documents (LOD) in possession of existing lender Yes Yes Last 12 months’ statement of bank account from which loan EMI is paid Yes Yes Application Form and KYC Salaried Self Employed Application Form with photo and signed by Primary Borrower and Co-borrower(s) Yes Yes Identity Proof of Primary Borrower and Co-borrower(s) Yes Yes Residential Address proof of Primary Borrower and Co-borrower(s) Yes Yes Age Proof of Primary Borrower and Co-borrower(s) Yes Yes Office address – ownership / lease / rent agreement / utility bill Yes Income Proof Salaried Self Employed Last 3 years’ Form 16, last 6 months salary slip, last 6 months’ bank account statement showing salary credit Yes Last 3 years ITR (self and business), profit and loss account, balance sheets certified / audited by a CA. Last 12 months bank account statement (self and business) Yes Certificate and Proof of Business Existence Yes Business Profile Yes
Documents Required for Under-construction Home Loan
Documents Required for Senior Citizens/Pensioners
Documents to collect from Lender after closing a Home Loan Basically there are just 5 documents to be received once you close your existing home loan and the list of these documents are below:
ICICI Bank Home Loan Documents Required Documents Required:
Documents Salaried Self Employed Self-Employed Non Professional Application form with photograph duly signed Yes Yes Yes Identity, residence and age proof Yes Yes Yes Last 6 months bank statements Yes Yes Yes Last 3 months Salary-slips Yes Yes Yes Processing fee cheque Yes Yes Yes Form 16 / Income Tax Returns Yes Yes Yes Proof of business existence Yes Business profile Yes Education qualification certificate and proof of business existence Yes Yes Last 3 years Income Tax Returns with computation of Income Yes Yes Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account Yes Yes
Axis Bank Home Loan Documents Required Documents Required:
Purpose Salaried Self Employed Proof of Identity and Address Passport or Voter’s ID card or Driving License or Job Card issued by NREGA or Aadhaar Card or PAN card (PAN Card only as identity proof) or any other document as acceptable to the Bank. Passport or Voter’s ID card or Driving License or Job Card issued by NREGA or Aadhaar Card or PAN card (PAN Card only as identity proof) or any other document as acceptable to the Bank. Proof of income Latest 3 Months salary slip showing all deductions and Form 16 IT returns for the last 2 years and computation of income for the last 2 years certified by a CA Bank statement or Pass Book where salary or income is credited Last 6 months Last 6 months Guarantor form Optional Optional
Bajaj Finserv Home Loan Documents Required
Citibank Home Loan Documents Required
HDFC Bank Home Loan Documents Required Documents Required:
Criteria Salaried Employees Self-employed Professionals Identity Proof Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card Resident Proof Latest Utility Bill/ Ration Card/Passport Latest Utility Bill/ Ration Card/Passport Income Proof Salary slips of the latest three months Income tax returns for the last three years Form number 16 to validate the income Balance sheet of the last three years to gauge profit and loss, validated by the CA/CS Income Tax Returns Current account statement of the business firm of 6 months Bank statement of the latest six months Savings account statements of all the applicants of 6 months Form number 26as for income tax filing
IndusInd Bank Home Loan Documents Required Documents Required:
Document Type Salaried Employees Self-employed Professionals Application Form Filled application form with 2 passport size photographs. Filled application form with 2 passport size photographs. Identity Proof Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card Resident Proof Latest Utility Bill/ Ration Card/Passport Latest Utility Bill/ Ration Card/Passport Education Proof NA Education certificates Income Proof Salary slips of the latest three months Income tax returns for the last three years Form number 16 to validate the income Balance sheet of the last three years to gauge profit and loss, validated by the CA/CS Income tax returns Current account statement of the business firm of 6 months Bank statement of the latest six months Savings account statements of all the applicants of 6 months Form number 26as for income tax filing
Kotak Mahindra Bank Home Loan Documents Required Documents Required:
Document Type Salaried Employees SELF-EMPLOYED PROFESSIONALS Application Form Filled application form with 2 passport size photographs. Filled application form with 2 passport size photographs. Identity Proof Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card Resident Proof Latest Utility Bill/ Ration Card/Passport Latest Utility Bill/ Ration Card/Passport Income Proof Salary slips of the latest three months Income tax returns for the last three years Form number 16 to validate the income Balance sheet of the last three years to gauge profit and loss, validated by the CA/CS Income tax returns Current account statement of the business firm of 6 months Bank statement of the latest six months Savings account statements of all the applicants of 6 months Form number 26as for income tax filing
PNB Housing Finance Ltd Home Loan Documents Required Documents Required:
Document Type Indian Resident NRI Application Form Filled application form with 2 passport size photographs. Filled application form with 2 passport size photographs. Identity Proof Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card Resident Proof Latest Utility Bill/ Ration Card/Passport Latest Utility Bill/ Ration Card/Passport Income Proof Salary slips of the latest three months Passport Copy Form number 16 to validate the income Work Permit copy (if applicable) Income tax returns Last three months’ salary slips Bank statement of the latest six months Appointment letter issued by current employer Proof of shop or firm establishment (for businessmen) Last two year’s income statement testified by the employer Office address Proof (for businessmen) Last 6 months bank statement for regular salary
Standard Chartered Bank Home Loan Documents Required Documents Required:
Document Type Salaried Employees Self-employed Professionals Application Form Filled application form with 2 passport size photographs. Filled application form with 2 passport size photographs. Identity Proof Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card Resident Proof Latest Utility Bill/ Ration Card/Passport Latest Utility Bill/ Ration Card/Passport Income Proof Salary slips of the latest three months Income tax returns for the last three years Form number 16 to validate the income Current account statement of the business firm of 6 months Income tax returns Form number 26as for income tax filing Bank statement of the latest six months
Tata Capital Home Loan Eligibility Documents Required Documents Required:
Document Type Salaried Employees Self-employed Professionals Application Form Filled application form with 2 passport size photographs. Filled application form with 2 passport size photographs. Identity Proof Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card Passport/ Voter’s ID/ Driving License/ PAN Card/ Aadhar Card Resident Proof Latest Utility Bill/ Ration Card/Passport Latest Utility Bill/ Ration Card/Passport Education Proof NA Education certificates Income Proof Salary slips of the latest three months Income tax returns for the last three years Form number 16 to validate the income Balance sheet of the last three years to gauge profit and loss, validated by the CA/CS Income tax returns Form number 26as for income tax filing Bank statement of the latest six months
Why are these Documents Required? Indian Loan Bazaar is one of the leading DSAs where you can get Home Loan at reasonable interest rate without any hassle and stress. We understand your emotions for your home as it is the place where you make best of your memories with your family and near and dear one’s. We also understand the value of your time and the difficulty which you face while the documentation regarding your home loan, hence we try to keep it as minimal as it can be. Documentation is a very important part, as this is the only way by which lenders can know their customer in a better way. The documentation process regarding a home loan is bit complicated as it as a secured loan. Here you need to give a guarantor and security in form of any of your property paper or anything else, so that we can build a trust on you and can lend you without any risk. Well, banks & financial institutions ask for numerous documents because of following reasons:
Why is the Income Proof Necessary? When you are looking for a Home Loan you must be looking for lump sum money. Mortgage or property loan is the easiest form of loan that can be a help here. In mortgage loan you need to mortgage one of your assets say land to the lender. You get a lump sum amount of money against the asset you are mortgaging. Now the question is why should one need an income proof to avail such loan? Mortgage Loans are easy to avail but it is not easy to access in case of dispute. According to the guidelines of mortgage loan if the borrower fails to repay the loan amount then the lender can easily cease the asset that is being mortgaged. The lender put the asset on sale and realise the money. But in case of asset, if we consider it as land, it is not easy to sell it off so quickly and realise the money. Hence the lender checks on borrowers’ income proof so that they can be sure of the EMIs. There is also a possibility of lowering down the property value in future, so it gets risky for the lender in mortgage loan.
What is Khata ? Khata is one of the essential legal revenue documents. It is required while authorizing any property for trade. Khata is basically an account of a person who is having a property in Bangalore which contains the tax details of the property. This Khata i.e. account is basically with Municipal Corporation. Khata (account) contains all the details related to the property which includes the property’s owner name, property size, location of the property and all the other details which are required for filling the property tax. In Bangalore, Khata decides evaluation of the property’s owner. In Khata the nature of property is also mentioned like whether the property is commercial or residential in nature. As when this is mentioned in the Khata it becomes easy in Licensing and for using it for trade purpose and to acquire Loan on it. Details which a Khata contain are:- All the above mentioned details are very important for filling the Property tax. Overall Khata is the document which licence the property and ensure that your property is eligible for paying the property tax. There are two types of Khata in Bangalore one is A Khata and the second is B Khata. These two are different in nature having their own significance. What is A Khata? A Khata is a register which contains the details of the property like, its name and their other tax details too. A Khata is basically the Khata which was being talked about above. If a property is in Khata A that means that for that property the property taxes are being paid. And they are having no outstanding tax amount on them. There are two elements of A Khata those are:- The Khata Certificate The Khata Certificate is fundamentally a document that a property proprietor / owner requires to enlist his / her property or for the exchange of the ownership that basically happens when a property is sold or even if an owner wants to transfer his / her property to any other. With a specific end goal to make a demand for the Khata authentication the proprietor of the property needs to compose a letter to the BBMP (Bruhat Bangalore Mahanagara Palike ) and furthermore join their most recent paid assessment receipt to it. These reports should be submitted with the board alongside a standard cost of Rs. 25 for every property they present the letter for. It is this permit or declaration issues by Khata that will empower the property proprietors to apply for water and power associations or so far as that is concerned getting their hands on a business permit. The Khata Extract The Khata extract is the document which contains all the documents regarding the property details. Those details are name of the owner, area of the property, tax details, plot number and mainly such details. What is B Khata? B Khata is totally different from the A Khata. B Khata contains the Name of properties which have outstanding taxes on them. And the taxes are yet to be given. Those properties which are in B Khata have yet not received their Khata certificate or any legal status. How to apply for a Khata? If you have not applied for Khata of your Property don’t delay this as from the above details now it would be clear to you that how important is Khata. For applying for a Khata all you need is to take an application form from the BBMP, fill that complete from and submit it to the revenue officer of the concerned area along with the tax details paper of the property. Why is Khata important? It is very important to have Khata of a property because you will need a Khata for taking electricity connection, water connection and even for any kind of loan.
What is Sale Deed ? A sale deed is a legal document which has all the information regarding the sale, purchase and transfer of a property. A sale deed holds lots of importance as it proves your ownership on a particular property which you purchased. A sale deed when talking basically is the main document which has all the details related to the deal of the property. A sale deed denotes proof that you have paid a particular amount against your house and hence it belongs to you now. This deed also contains some other information such as details the of previous owner, previous to previous owner, value paid against the property, location and dimensions of the property. Sale deed is also a declaration that you are selling your property with your own will. A sale deed is prepared by an authorised lawyer on behalf of an individual. The sale deed declaration should include all details of the property, ownership and the financial deal and it has no fixed format.Who prepares a Sale Deed?
Information a Sale Deed contains:
What is Patta ? If you own a piece of land then Government issues a legal document as a proof of ownership of the land. This piece of document is called Patta. Patta generally issues in the name of the owner of the land. But government issues Patta only for those properties which are in constant use. As for example if your land is unproductive then you can’t get the Patta for it. You will only get the document issued if there is any house or building built on it. If there are multiple owners for a single plot then a single Patta is being issued for all the owners. But in that case the there must be a division of the property. If there is an undivided land Patta will not get issued. Patta is a legal document and definitely it has immense importance when it comes to property dealing. It is an important ownership record that is required to set up right of ownership for the owner of the particular land under the law. Also holding a Patta will make things much easier, especially the government’s compensation from the plot and such will become much easier for the owner. Patta, on the other, works like a Will Draft. Those who don’t have any Will Paper before his / her death then the land ownership will be automatically transfer to the next family member if the deceased person held a Patta for the land. There will be a small name transfer and renewal process that one must go through to transfer the name (s) of the Patta holder. Patta is issued by the administrative authority or Tehsildar of the district. There is a small process of obtaining the Patta. The owner (s) has to submit an application or requisition along with necessary documents and details of the owner. There might be an interview of the owner or verification and inspection of the land and the owner. There is a specific format of the required details that the owner has to follow during the process of obtaining Patta. The authority will enquire and do survey of the land as well. The Patta does not need annual or monthly renewal. The renewal takes place only at the time of name transfer. Home Loan Application Form is the first basic step to start the processing of home loan, post validation of all details in the application form the bank with process the loan and will let you know the next steps to make your dream come true.Is it compulsory for every property owner to have a Patta?
Where can we obtain Patta?
What is Home Loan?
Which factors determine my home loan eligibility?
What is the difference between a fixed rate and floating rate home loan? Ans. The rate of interest associated with fixed rate loans remain unchanged during the entire tenure of the loan. On the other hand, the interest rates applicable on floating rate loans can be revised from time to time depending on the RBI key policy rates. The equated monthly instalments can increase or decrease depending on the prevailing RBI rates in the case floating rate type loans.
Can I prepay my outstanding home loan amount? Ans. Yes, you can choose to prepay your outstanding loan amount either partially or in full before the completion of your loan tenure. While banks do not charge any prepayment fee on floating rate loans, fixed rate home loans attract a penalty up to 2% of the loan amount if prepaid through refinance.
Can I avail tax deductions on my home loan? Ans. Yes, you can avail tax benefits on both the interest and principal component paid against your home loan. As per Section 80C of the Income Tax Act, you can avail deductions up to Rs.1.50 lakh on the principal amount repaid annually. Under Section 24 of the IT Act, taxpayers are also eligible for benefits up to Rs.2 lakh on the interest repaid against a home loan annually.
Who can be a co-applicant? Ans. The co-applicant can be an immediate family member such as your spouse, your parents or even your major children. It is also mandatory for all co-owners of the property to be co-applicants while applying for a loan. However, the co-applicant need not be a co-owner.
What is Pre-EMI? Ans. Pre-EMI is defined as the interest that is to be paid to the loan provider until the entire loan amount is disbursed. The Pre-EMI is payable on a monthly basis until the last disbursement, post which the regular EMI will be applicable comprising the principal and interest components.
What are the types of home loans available? Ans.
What is MCLR? Ans. Marginal Cost of funds-based Lending Rate is the benchmark rate set by a lending institution below which they cannot provide loans to their customers.
Can I switch from a fixed rate to a floating rate during my home loan tenure? Ans. Yes, you can switch from a fixed to floating rate of interest on your home loan during the repayment tenure. However, you will be charged a conversion fee by the lender in such cases.
When does my loan repayment period begin? Ans. The loan repayment period begins only after the loan provider has disbursed the entire home loan amount. However, you will be required to pay the interest i.e. pre-EMI on the partially disbursed loan on a monthly basis, in most cases.
Can I take 2 home loans at the same time? Ans. Yes, you can take 2 home loans at the same time provided that your lender approves your eligibility to manage 2 Equated Monthly Instalments (EMIs) at the same time. However, the tax benefits on the second house will be different and you will be required to establish the property as self-occupied or let-out property.
Can I get 100% financing on a home loan? Ans. No. Banks/financial institution do not grant 100% of the property value as home loan. Home loan lenders establish a margin on their loan i.e. the percentage of the cost that the lending institution will be covering. For example, if the margin on the loan is set at 10%, the bank will cover 90% of property value. In such cases, you will be required to a make a down payment of the balance amount, i.e. 10% in order to cover for the rest of the cost.
Does having a personal loan affect home loan eligibility? Ans. When determining your home loan eligibility, the lender makes sure that your monthly repayments are not being affected by any other ongoing loans such as personal loan, two-wheeler loan, etc. However, other ongoing loans ultimately tend to affect your eligibility as your overall spending power is reduced. If your other loan commitments exceed 50%-60% of your monthly income, your home loan application may be rejected.
Is personal loan better than home loan? Ans. If you are buying a house, home loan is the best option. Usually you will not be eligible for a personal loan for as high an amount required for the purchase of a house. If you want extra money for non-specific personal needs, then go for a personal loan. Home loans also have an added advantage of top-up loans wherein you can request a top up on your loan amount to cover additional needs such as furnishing your house.
Can I buy a house with two loans? Ans. No, you cannot avail two home loans for the same property. Any such practice will be considered fraudulent. The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) ensures that fraudulent practices such as availing two housing loans for the same asset/property are prevented.
How do joint home loans work? Ans. A joint home loan can be availed by adding a co-applicant such as your spouse, parents, or an immediate family member on your application. Adding a co-applicant will increase your home loan eligibility as the lending institution will also be considering the co-applicant’s income and credit score when determining your loan eligibility. All co-owners of the property are required to be the co-applicant for a loan. However, the co-applicants need not necessarily be the co-owner of the concerned property.
How is my Loan Eligibility Calculated? Ans. Loan eligibility is dependent on primarily the following factors:
My loan got rejected even though i have a decent salary package? Ans. The final decision to grant a loan lies with the credit department of a bank. Some of the reasons why a loan can be rejected are: Possible Way Out:
Already running several loans and hence a bank may not be comfortable with your existing leverage levels vis-a-vis your salary level.
a)If you have a spouse who is also working, you can add her as a co-applicant to boost the combined salary levels or
b) Try to pay off some of your debt so that your leverage levels can come down or
c) Do a balance transfer/debt consolidation/re-financing of your existing loans such that the rate of interest on loans can also come down and additional loan can also be providedPossible Issue:
Issues in your credit history as reflected in your CIBIL, Equifax reports.Possible way out:
a) If the issue is a minor one like some delay in payment of credit card due then we can try your application in some other bank who can possibly take a lenient view on the deviation.
b) If you think that the credit report is erroneous and you have sufficient documentary proof we will represent the case to the bank and try to convince the credit team.
c) If the issue is a major one like write off, settlement of any past dues etc then it might be difficult to obtain a loan. Certain mitigation factor like if you/your spouse/your parents have an own house in India can give comfort to certain banks to give you a loan.Possible Issue:
Most banks have certain internal credit parameters to evaluate a loan which is kept confidential and not shared with us. Several demographic, financial and credit aspects go into these internal evaluation. You might not have met the minimum cut off for obtaining a loan.Possible way out:
Finance Buddha can re-apply for your loan in one of the other 10 plus lenders that we are affiliated to
Home Loan Subsidy by the Government
The government launched the ‘Pradhan MantriAwasYojana – Housing for All’ scheme with the aim that every Indian household should have a pucca house by 2022. Under the scheme, home loan interest subsidy can be availed by individuals if they meet the necessary criteria. The interest subsidy is provided under the Credit Linked Subsidy Scheme (CLSS).
What is Credit Linked Subsidy Scheme (CLSS)?
Credit Linked Subsidy Scheme is one of the components under the Pradhan Mantri Awas Yojana (PMAY). Under it, the central government offers interest subsidy on home loans availed by applicants who fall under:
- EWS (Economically Weaker Section)/LIG (Low Income Group)
- Revised EWS (Economically Weaker Section)/LIG (Low Income Group)
- MIG – I (Middle Income Group 1)
- MIG – II (Middle Income Group 2)
Affordable Housing through Credit Linked Subsidy
- EWS /LIG: Under the Economically Weaker Sections (EWS) or Low Income Group (LIG) scheme, the interest subsidy is offered at a rate of 6.50%. The interest subsidy is offered during the tenure of the loan or for 15 years depending on whichever is lower. The interest subsidy is provided for loans up to Rs.6 lakh with the maximum subsidy amount being Rs.2.20 lakh.
- Revised EWS/LIG: Interest subsidy under revised EWS/LIG is offered at 6.50%. The subsidy is offered for the actual tenure of the home loan or for a period of 20 years. The maximum subsidy amount is Rs.2.67 lakh. The subsidy can be availed on home loans that were approved on or after 1 January 2017.
- MIG – I: Applicants who fall under the MIG – I category can avail subsidy at the rate of 4% with the maximum loan amount being Rs.9 lakh. The maximum loan term taken into consideration for the calculation of subsidy is 20 years. Under the scheme, the maximum subsidy amount is Rs.2.35 lakh.
- MIG – II: Under MIG – II, the maximum loan amount for subsidy is Rs.12 lakh and beneficiaries can avail an interest subsidy of 3%. Under the category, the maximum subsidy amount that can be availed is Rs.2.30 lakh The maximum term of loan on which subsidy will be calculated is 20 years.
Pradhan MantriAwasYojana – Credit Linked Subsidy Scheme (PMAY-CLSS) Details :
Criteria EWS/LIG Revised EWS/LIG MIG – I MIG – II Woman Ownership Yes Yes N/A
N/A Annual Household Income EWS – Up to Rs.3 lakh LIG – Rs.3 lakh to Rs.6 lakh EWS – Up to Rs.3 lakh LIG – Rs.3 lakh to Rs.6 lakh Rs.6.01 lakh – Rs.12 lakh Rs.12.01 lakh to Rs.18 lakh Maximum loan amount for Subsidy Up to Rs.6 lakh Up to Rs.6 lakh Up to Rs.9 lakh Up to Rs.12 lakh Subsidy %
6.50%
6.50%
4%
3% Maximum Subsidy Amount
Rs.2.20 lakh Rs.2.67 lakh Rs.2.35 lakh Rs.2.30 lakh NPV
9%
9% 9% 9% Maximum term of loan on which subsidy will be calculated 15 years
20 years
20 years
20 years Carpet area EWS – 30 sqm LIG – 60 sqm EWS – 30 sqm LIG – 60 sqm 160 sqm 200 sqm Validity
2022
2022
31/3/2020
31/3/2020 Applicability
Loans approved on or after 17/6/2015 Loans approved on or after 01/01/2017 Loans approved on or after 01/01/2017 Loans approved on or after 01/01/2017 Location
All statutory towns as per 2011 census and the towns added subsequently All statutory towns as per 2011 census and the towns added subsequently All statutory towns as per 2011 census and the towns added subsequently All statutory towns as per 2011 census and the towns added subsequently Property should be Family’s 1st home 1st home 1st home 1st home
Are You Eligible to Avail the Benefits Under PMAY?
In order to avail the benefits under PMAY, you need to make sure that that the eligibility criteria mentioned below are fulfilled:
- Should not own a pucca house in your name or in the name of any other member of the family.
- The ownership of the house should either be in the name of the female member of a household or in joint ownership with your wife (applicable to EWS/LIG and revised EWS/LIG schemes only).
- Should meet the income criteria as per various categories under the scheme.
- The carpet area of the house should be 30 sqm for EWS beneficiaries, 60 sqm for LIG beneficiaries, 160 sqm for MIG – I beneficiaries, and 200 sqm for MIG – II beneficiaries
- Should not have taken a home loan or availed interest subvention benefit under the scheme.
Maximum Subsidy That Can Be Claimed
Under CLSS, the maximum subsidy you can claim is Rs.2.67 lakh. The amount can be availed under the revised EWS/LIG scheme. The subsidy is offered at the rate of 6.50%.
Frequently Asked Questions (FAQs) on Home Loan Subsidy
1. Which central nodal agencies are operating the disbursal of subsidy under CLSS?
National Housing Bank (NHB) and Housing and Urban Development Corporation Limited (HUDCO) are the central nodal agencies that are operating the disbursal of subsidy under CLSS.
2. How is the subsidy disbursed to the central nodal agencies?
First, an advance subsidy is disbursed at the start of the scheme by the central government. The remaining subsidy will be released after 70% of the earlier amounts are utilized on a quarterly basis or based on claims raised by the CNA.
3. Do Primary Lending Institutions (PLIs) have to enter into MOUs with the central nodal agencies for claiming subsidies?
Yes, they will be required to enter into an MOU with one of the central nodal agencies if they want to claim benefit under CLSS.
4. Can I avail the subsidy if I purchase a newly constructed house that is being resold?
Yes, you can avail of the subsidy as under the definition of new construction, the resale of a new construction house is included.
5. Is carrying out repairing work to the existing house covered under CLSS?
Yes, it is covered. However, repairing work can be undertaken only in kutcha and semi-pucca houses. In case it is a semi-pucca house the benefit can be availed only if extensive renovation needs to be carried out to make it a pucca house
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