For most Indians, buying a house is probably one of life’s biggest achievements. Finding the right house and then getting a suitable home loan are almost equally important. But it is not just a lack of finances that makes people opt for home loans. There are many other benefits that you can enjoy when you get a home loan.
In simple words, a home loan is a specified amount of money that you borrow from a financial institution such as a bank or a lending company. You pay a certain EMI on a monthly basis to pay off the loan. The property is regarded as a security by the lender. In case that the borrower is not able to pay off the loan, the legal rights of recovering the loan amount are with the lending company.
A home loan has a much wider scope and not just buying a new house. There are various types of home loans:
Unlike other loans that may be considered a liability, when you undertake a home loan, you are basically building up an asset. This asset in most cases will only appreciate with time. This makes taking a home loan quite advantageous.
A home loan has the ability to turn your dream into a reality. It makes buying a house affordable.
Home loans are quite flexible. You can choose a repayment term for as many as 30 years, making the monthly instalments well within your reach. As per your budget you can choose an EMI and pay off the loan.
Considered to be the biggest tax-saving instrument, home loans allow you to save a great deal. Under Sections 24, 80C and 80EEA of the Income Tax Act, you can claim up to INR 5 lakhs as tax deduction.
Your house is an asset that can offer you the highest appreciation benefits. Unlike a car, the value of this asset will not decrease because of depreciation.
With Piramal Finance, from your loan application to the payment journey, the procedures are easy-to-understand and transparent. Our dedicated customer care team offers you constant support whenever you need it.
Though going through the loan application may seem a difficult task, if you do your homework, you can sail through this process in a hassle-free manner. The home loan documents that are needed along with the loan application are mostly based on the profession/occupation of the applicant. Let us first take a look at the documents that are common for all:
a. Aadhar Cardb. Driver's Licencec. Voter's ID Cardd. Passport
a. An Identity Proof with the permanent addressb. Telephone Billc. Electricity Billd. Water Taxe. Property Tax receiptf. Post-paid Mobile Bill
a. Stamped agreement of the sale/ Sales Deed or the letter of Allotmentb. NOC from the builder/ housing societyc. Possession Certificated. Detailed Construction cost estimatione. Bank Account statementf. In case of Constructed Apartment - Occupancy Certificate
a. Salary Slips (latest)b. Form-16
a. GST Registration Certificateb. Trade Licensec. Partnership Deedd. Import Export Codee. SEBI Registration Certificatef. Memorandum of Associationg. ROC Registration Certificate
a. Balance sheetb. Profit and Loss Statement Sheet
The list of documents discussed above are important. The home loan documents need to be submitted so that the lender can verify your financial standing and other essential details. The home loan documents can either be physically handed over to the company executives or through the online company portal page.
When you submit all the housing loan documents timely and in an orderly manner, you allow quicker verification and thus quicker processing of your home loan. Missing out on an important document will cause unnecessary delays in the verification. This would directly affect the other formalities.
When you are aspiring to buy the dream house through a home loan, preparing yourself in advance can be very helpful. Make sure your tick all the boxes in the home loan documents list. Getting things in order will make the application process simpler and quicker.
If the property against which you seek loan is under construction, the loan may be obtainable without some of the above mentioned documents. But keep in mind that the property must be registered and a “Completion Certificate” has to be obtained.
The application procedure of every bank/financial institution is different. However, in most cases if the borrower already has a home loan from a particular lender, he can get the home loan sanctioned without any documentation. Some lenders also allow digital sanction if the borrowers apply for a home loan online, without any documentation.
It should be noted that at the time of disbursal/ verification the documents may be required.