Home Loan

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Types of home loans:There are many types of home loans. The major ones are Loan to buy property with house.Loan to build a house in their property.Loan to own a flat.Loan to buy a property and then construct a house.Loan to renovate the existing house

Amount of home loan one can avail:The amount one can avail for home loan solely depends on the income of the person (mainly salary) i.e. after excluding monthly expenses,amount of charity, subscription charges.The loan amount can only be 80 per cent of the estimated amount to buy or construct the house or flat, the other 20 per cent of the above said expenditure should be met by the person itself.Ex:If the estimated amount to buy the flat or house is ₹10 lakh only 80%i.e. only ₹8lakh will be granted as loan.

The plan and estimated amount must be prepared by a certified engineer, this must be approved by the bank for getting the loan sanction.Documents to get a home loan:Salary details:salary certificate for employees and income tax return certificate for person doing business. For NRI: salary certificate and bank statement for the last 6 months. This is to prove that the person is not insolvent and has relevant source to repay the loan.Property document: Residence ownership proof,Tax paid receipts, No obligation certificate, utility certificate, property location sketch

Acceptance certificate: A certificate from the person explaining the location, materials for constructing, the distance from road, estimated time for the completion of construction, etc KYC:( Know your customer): personal documents comes under KYC which includes ID proof, Aadhaar card, PAN card, and good civil score. For receiving huge amount we can increase the repayment period.Make sure to collect the loan repayment schedule before accepting the loan and study the schedule before making a decision considering the amount one gets after all the expenditure.Consider two or more banks before taking a loan