Owning a house is an aspiration today. It is a matter of self-esteem for the youth to purchase their first house, whereas for middle-aged people, buying a bigger house is a way to improve their living standards. Lots of housing plans and easy disposal of home loans support you to make this dream into reality.
A home loan is an instrument which helps you to buy the house of your dream by giving you access to the necessary funds at the right time. Apply for the loan is hassle-free for all – be it salaried people, self-employed businessmen or professional.
Criteria for a home loan
The general requisites for getting a housing loan, irrespective of whether you are salaried or self-employed, include stable earnings and a strong credit profile. Your incomes reflect your capability to repay the loan, while your credit profile signifies your inclination and attitude to repay loans on time.
To ascertain your ability to avail of a house loan, the lender will ask you to present certain documents required for home loan, which may vary based on your work profile. The lender requires these documents to determine the source, stability and frequency of income for the loan to be granted.
Here is a list of documents required for home loan which are needed for processing home loans in India:
Documents to be submitted by salaried individuals
Salaried people are usually required to provide the following home loan documents:
- Salary slips of the last past three months.
- Bank account statements including salary account details, of the past six months
- Latest income tax return filings.
- Letter of employment in case the tenure in the present job is less than a year.
Documents to be submitted by self-employed people
Business people and self-employed professionals require to submit home loan documents such as their financial standing as well as that of their business or professional practice –
- Income tax returns along with the income of the last three financial years.
- Balance sheets and income details with schedules and annexure accredited by auditors.
- Current account statements of the business entity and savings account statements of the individual of the past six months.
- Details of current loans of both – the individual and the business, including the unpaid amount, payments and security.
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