A home loan is a sum of money borrowed from a bank or a financial institution for the purchase or construction of a house. It is a secured loan where the property is pledged as security to the lender till the loan is repaid. A bank or financial institution holds the property or document until the loan is repaid with interest on the loan.
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Different types of home loans are available in the market to meet different needs of borrowers:
Home purchase loan
It is the most common type of home loan for buying or constructing a new house/apartment.
Home improvement loans
Are used to renovate an existing home.
Home extension loans
Are available to customers if they want to expand or expand their home, such as adding a new house or a new wing.
Loan against property
Loan against property is for people requesting loan against already existing property.
Land Purchase Loans are sought for buying land as an investment or building a house in the future.
Balance transfer loans
These are taken to pay off an existing home loan, enabling borrowers to borrow at a lower interest rate.
The documents required to apply for home loan?
The documents to be submitted while applying for a home loan vary from one lender to another. However, common documents required by most lenders include:
Jobber Persons Information:
Identity Proof: Passport, Driving License, Voter ID or PAN Card
Address Proof: Aadhaar Card, Passport, Driving License, Voter ID or Utility Bill
Bank statement of last 3 months
Last 3 months salary slip
Information on Self-Employed Persons:
Identity Proof: Passport, Driving License, Voter ID or PAN Card
Address Proof: Aadhaar Card, Passport, Driving License, Voter ID or Utility Bill
Proof of Income: Audit report for last two years
Latest 6 months bank statement
Office address proof
