Frequently Asked Questions

Ans: Home loan is taken to buy a house, Construct a house, Home Renovation, Purchasing a plot and constructing on it, Home extension.

Ans: Yes, you can take Pre-sanction by submitting profile documents along with PF cheque.

Ans:  Loan eligibility is calculated based upon your Gross Monthly Income and Total Property Cost.  You can avail a maximum of 85% for a total property cost upto 20 lakhs. If it is above 20 lakhs 80% will be sanctioned by the Banks.
Eg: your total property cost around 20lakhs bank will sanction only 85% of property cost (2000000*85/100 = 17lakhs).

A co-applicant refers to a person who applies along with the borrower for a loan. This is done so that the income of the co-applicant can be used to supplement the borrower’s income and increase his/her eligibility.

No, Banks and housing finance companies (HFCs) have allowed only a few specified relations to be co-applicants. Although, it must be noted that it is not compulsion or legal requirement to have a co-applicant. Banks also do not allow a minor to be a co-applicant.

Most of the banks in our country allow a few specified relations to be co-applicants. Brother-brother, father-son, mother-son, husband-wife etc are acceptable combinations for borrower and co-applicant.

The following relationships cannot be a co-applicant for a loan:
Married daughter & Mother/Father
Sister and Sister
Sister and Brother

Success rate of your loan approval could be better
Increased eligibility can help you buy a bigger house and get a bigger loan too
Tax benefits for both the applicants and co-applicants

We give you a standard list of documents your bank will ask for. Besides this you need to submit details of the property or home you are obtaining the loan for.
Document requirements differ from bank to bank.
1. Identity proof
– Driving license
– Voters ID
– Passport
– PAN card
– Ration card
– Employee ID
– Bank passbook
– Letter from a recognized public authority or public servant verifying your photograph
– Confirmation letter from your employer or another bank verifying your photograph
2. Address proof – Driving license
– Voters ID
– Passport
– Ration card
– Bank passbook or Bank account statement
– LIC policy/ receipt
– Utility bill – telephone, electricity, water, gas (less than 2 months old)
– Letter from any recognized public authority verifying residence address of the customer
– Letter from your employer
3. Age proof
– Driving license
– Passport
– Bank passbook
– PAN card
– Birth certificate
– 10th standard mark sheet
4.Income proof
Income proof and property proof vary for a salaried individual and a self-employed individual.
a. Self Employed/Businessmen
– A brief introduction of Business/Profession
– Balance Sheet, profit and loss account statement of income, proof of income tax returns for the last 3 years certified by a CA
– Photographs
– Receipts of advance tax payments if any made
– A photocopy of Registration Certificate of establishment under Shops and Establishments Act/Factories Act
– Registration Certificate for deduction of Profession Tax
– Certificate of Practice
– Receipts of Bank loans
– Proof of investments (FD Certificates, Shares, any other fixed asset)
b. Salaried individuals
– Income Proof (any one of the following):
Latest Pay slip
Form 16
Increment/Promotion letters
Appointment letter
Pay slip (Last 2 months) with salary account bank statement
Certified letter from Employer
IT returns ( for three years )
– Investment proof (FD certificates, shares, any fixed asset etc.)
– Documents supporting the financial background of the borrower (liabilities and assets if any)
– Photographs
5. Property documents

If a flat is purchased from a builder, you need the following property documents:
– Original copy of your agreement with the builder
– 7/12 extract – This is issued by the concerned land authorities giving details such as the survey numbers, area, date from which current owner is
registered as owner etc.
– Property register card, which is obtained from the City Survey Department
– N.A. permission for the land from the collector, if its agricultural – If the land is agricultural and is being utilized for residential/ commercial/industrial use, then such agricultural land has to be converted to non-agricultural land and a Non-Agriculture Order has to be obtained from the Collector of the district where the property is located.
– Search Report and Title Certificate – A search report and title certificate can be obtained from an advocate who will conduct a survey of the title of the property by visiting the office of registrar. A legal opinion can avoid any legal hassles later and is mandatory to be filed with the agreement for sale.

– Development agreement between the owner of land and the builder
– Copy of order under the Urban land Ceiling Act
– Copy of building plans sanctioned by the competent authority
– Commencement certificate granted by the Corporation
– Building completion certificate
– Latest receipts for taxes paid towards the land or property or flat to be purchased
– Partnership deed or memorandum of association of the builders firm If a flat is purchased from a Cooperative Society, you need the following property documents
– Original share certificate of the Society
– Allotment letter from the Society in your name
– Copy of the lease deed, if executed
– Certificate of the registration of the society
– Copy of the bye laws of the Society
– No objection certificate from the Society
– 7/12 extract or property register card in the Society’s name
– Copy of N.A permission for the land from the collector
– Search Report and Title Certificate
– Copy of order under the Urban Land Ceiling Act
– Copy of the building plans sanctioned by a competent authority
– Commencement certificate granted by Corporation
– The latest receipts of taxes paid for the property
– Original Agreement to assign / Deed of assignment If you are constructing on your own land, then you will need the following property documents.
– Original sale deed of land and extract of Index II
– 7/12 extract or property register card in your name
– Copy of N.A. permission for land from the collector
– Search and title report
– Copy of tax paid under Urban Land Ceiling Act (obtained from Commissionerate of Urban Land Ceiling and Urban Land Tax)
– Copy of the building plans sanctioned by a competent authority
– Building permission granted by the Corporation
– The latest receipts of taxes paid for your land
– Estimate of the cost of construction certified by the architect

Interest rates can be calculated at a flat rate keeping the outstanding amount (i.e, the amount on which interest is calculated) constant throughout the loan tenure or at a reducing balance rate, which lowers the outstanding amount as the loan is paid back.

Ans. No Guarantor Required.

Ans: Maximum is 20 years and Minimum is 5 years.

Pre-Emi is the Emi that is paid when a property is under construction and it is calculated on the disbursed amount and you will be paying the interest part alone for the loan amount disbursed. However, the actual emi will be paid only after the construction is completed and the entire loan amount is disbursed.

Ans: NRI Stands for Non Resident Indian. An Indian citizen who holds a valid Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad.

Ans: Yes NRI can avail Home loans. The NRI loans are made available for the following purposes:
Self-construction of a property on a plot of land
Finance the purchase of a plot of land allotted by a society/development authority
Renovate/improve an existing property in India
Purchase of a house either under construction or on a resale
Non-resident Indians are also permitted to purchase an existing house or flat. The RBI has not prohibited banks from providing financing to NRIs for the purchase of a second house, but the loan on the house is for the self-occupation of the NRI upon their return to India. Loans are also offered to NRIs against NRE deposits. These loans can be repaid out of NRE funds but the interest would be charged at a commercial rate. Loans to Non-Resident Indians are also provided against FCNR deposits.

Ans: Power of Attorney can be father, mother, brother, sister, spouse, friends and relatives.

Ans: NRI loan is processed in the city where PoA stays and property should be in the same place. However, an NRI can submit the documents through his PoA. The documents needs to be notarized by the Indian embassy and has to be scanned and forwarded to PoA. Bank will reach out to the PoA from the concerned branch and will proceed further.

Ans:  A Loan that gets approved based on the salary/savings account transactions and its given only for account holders.

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