Home Loan

All You Need To Know About Home Loan For Salaried Persons


Are you a salaried person looking for an affordable and convenient way to buy a home? Home loans and housing loans are great options for salaried individuals, as they provide easy access to funds to purchase a home. In this blog post, we’ll cover everything you need to know about a home loan for salaried persons, from eligibility requirements to loan repayment options. Read on to learn more.

Home Loan- An Overview

When you’re looking to buy a home, the process can be overwhelming. However, a home loan is one of the most common ways people finance their dream home, and understanding the basics of housing loans can help make the process easier.

Banks or other financial institutions usually provide a home loan. In most cases, they have secured loans, meaning they are backed by collateral—usually your home itself. The amount you can borrow depends on various factors, including your credit score, income level, and property value.

The terms and conditions of a home loan vary depending on the lender. Common home loan terms are 15, 20, or 30 years. You will also need to make monthly payments to your lender that include both the principal (the amount you borrowed) and the interest.

When you apply for a home loan, you’ll likely need to provide some documents like bank statements and tax returns to prove your income and creditworthiness. Your lender may also require you to purchase private mortgage insurance if you don’t have a large enough down payment.

The Eligibility Criteria

It’s important to understand what requirements you must meet in order to apply for housing loans in India.

  • The person must be between 18-70 years of age. 
  • The applicant should be a salaried employee or a self-employed individual with a regular source of income.
  • Their income must be more than Rs. 25,000 a month, depending on the city of residence.
  • Their credit score must be above 750 to apply for housing loans.

The Documents Required

Before applying for a home loan, it is important to know what documents are required to get the loan approved by the lender. The lender will use these documents to assess your creditworthiness and determine whether or not you qualify for the home loan

  • Proof of Identity: This includes documents such as a passport, driving license, PAN card, or Aadhaar card. 
  • Proof of Residence: This includes documents such as an electricity bill, landline bill, water bill, or rental agreement. 
  • Income Proof: This includes salary slips, bank statements, and income tax returns. 
  • Bank Statements: You will need to provide copies of your bank statements for the last three months. 
  • Property-Related Documents: You will need to provide documents such as the sale deed, title deed, mutation certificate, and other relevant documents related to the property.

It is important to remember that each lender may have different requirements regarding the documentation they require. Be sure to check with your lender beforehand to ensure you have all the necessary documents ready when applying for your home loan

The Application Process for Housing Loans

For salaried persons in India, the process is relatively straightforward and easy to understand. 

  • The first step to obtaining a home loan is to gather all of your financial documents and prepare them for submission. These documents include your income tax returns (ITR) for the last two years, salary slips, and any other documents related to your finances that you may need to provide. Once you have all of these documents together, you will need to fill out an application form provided by the lender.
  • Once the application form is completed and submitted, the lender will assess your eligibility based on their criteria. After they approve your application, they will issue you a sanction letter outlining the terms and conditions of the home loan
  • The lender will verify all the documents and check for any discrepancies before disbursing the home loan amount. 
  • Once the lender provides the loan amount, you will need to start making timely repayments according to the loan repayment schedule provided by the lender. It’s important to note that late payments may result in additional charges or even foreclosure of housing loans, so be sure to make payments on time every month. 

The Benefits Of Housing Loans

If you’re a salaried individual, taking out a home loan can be one of the most rewarding investments you make. While it’s true that the responsibility for managing and paying off the loan comes with it, the potential benefits far outweigh the risks. Here are some of the key advantages of opting for housing loans if you’re a salaried individual: 

  • Affordable interest rates- The interest rate on your home loan is determined by factors such as your personal credit score, income bracket, and type of employment. As such, whether you opt for a fixed-rate or an adjustable-rate mortgage will depend on which kind of rate suits your needs best. 
  • Quick loan disbursal- Generally, it takes less than 48 hours to complete all paperwork and get the final approval from verified lenders. In comparison, when applying for other loans, you would need at least a month to obtain formalities like background checks and character verification before getting into negotiations about your eligibility for funds. 
  • Lower risk– You also have lower risk when investing in a home because many banks offer insurance against unexpected events like death or disability, where they would pay back part or all of the outstanding balance on your mortgage, should anything happen to you.
  • Tax benefits- Taking out a home loan also allows you to avail several tax benefits. The Indian government has various tax deduction schemes, such as Section 80C of the Income Tax Act, which lets you deduct up to Rs. 1.5 lakh on the principal component of your home loan. 


Understanding how housing loans work is essential for making an informed decision when it comes to financing your dream home. It’s important to know what kind of loan you’re getting into, how much you can afford, and what kind of terms you can expect. With the right knowledge, you can find the best loan for your financial situation. For more information, head over to Piramal Finance