With decades of experience of the promoter and key personnel in the real estate, at Shanta Sriram, we acknowledge that it is crucial to choose a trustworthy bank/financial institution - as home loan is a long term decision which lasts for 15-25 years. The loan repayment process can not only influence your lifestyle, it can also turn into a burden in the long run. In light of the above factors, our efficient and professional team facilitates loans to our esteemed customers at very competitive interest rates in the industry while reading the fine print and making the customer aware of it. In short, it creates transparency while tailoring a loan package that totally meets your needs.
Home Loan Eligibility criteria By various Banks
Your Home Loan eligibility is determined by your repayment capacity, taking into consideration, factors such as:
- Spouse's income
- No. of dependants
- Stability and continuity of occupation
- Savings history
The most important concern of banks in determining your loan eligibility is that whether or not you are contentedly able to pay off the amount you borrow.
General Documents For Home Loans
Generally the documents required to processing your loan application are almost similar across all the banks; however they may differ with various banks depending upon specific requirement etc. Following documents are required by financial institutions to process the loan application:
- Age Proof
- Address Proof
- Income Proof of the applicant & co-applicant
- Last 6 months bank A/C statement
- Passport size photograph of the applicant & co-applicants
- Employment certificate from the employer (If Salaried)
- Copies of pay slips for last few months and TDS certificate (If Salaried)
- Latest Form 16 issued by employer Bank statements (If Salaried)
- Copy of audited financial statements for the last 2 years (If Self Employed)
- Copy of partnership deed if it is a partnership firm or copy of memorandum of association and articles of association if it is a company (If Self Employed)
- Profit and loss account for the last few years (If Self Employed)
- Income tax assessment order (If Self Employed)
Home Loan Process & Various Steps Involved
There are various steps involved in getting a Home Loan from selecting your property to filling up the loan application. Following are the various stages in Home Loan:
- The first step involved in the process is to find your property depending on all your needs, post that collect the necessary price sheets & you can start searching for the lender who can offer the best Home Loan deal after checking your eligibility criteria.
- Know the Home Loan Eligibility: Banks offer the loan amount only after checking your profile & based on various eligibility criterias like age, income, assets & salary banks lend you the money.
- Select the Best Home Loan after evaluation: Comparing home loan interest rates is the primary feature in the home loan selection, however other fees & charges like Application fees, processing fees, legal charges, should not be neglected when comparing various loan offers. Read through all the terms and conditions of the loan like pre payment penalties
- Applying for the Loan : After you have selected your lender, you have to fill in the application form wherein the lender requires complete information about your financial assets & liabilities; other personal & professional details together with the property details & its costs.
- Documentation & Verification Process: You are required to submit the necessary documents to the bank which will be verified together with the details in the application.
- Credit & default check: Bank also checks credit history through the Cibil Score which plays a critical role in deciding & approving your loan application. Low Credit Score implies that the bank upfront rejects your application on the basis of earlier credit defaults; on the other hand high credit score gives a green signal to your application.
- Bank sanctions Loan & Offer letter to the borrower: After the credit appraisal of the borrower bank decides the final amount & sanctions the loan, the bank further sends an offer letter to the borrower which constitutes the details like rate of interest, loan tenure & repayment options etc.
- Acceptance Copy to the Bank: The borrower needs to send an acceptance copy to the bank after the borrower agrees with the terms & conditions in the offer letter.
- Bank checks the legal documents: The bank further asks the legal documents of property from the borrower to check its authenticity so as to keep them as a security for the loan amount given. The next step involved is the valuation of the property by the bank which determines the loan amount sanctioned by the bank.
- Signing of agreement & the loan disbursal: The borrower signs the loan agreement & the bank disburses the loan amount.