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Home Loan

What is the maximum loan I can avail of?

You can avail of a maximum of 80% (may very case to case) of the cost of the property including the cost of the land.
How will Bank decide the loan amount I am eligible for?

Subject to the above, repayment capacity as determined by banks will help to decide how much you can borrow. Repayment capacity takes into consideration factors such as income, age, qualification, number of dependents, spouses income, history, and of course Banks main concern is to make sure you can comfortably repay the amount borrowed.
When can I make an application?

You can make an application at any time after you have decided to acquire/construct a property, even if the property has not been selected or the construction has not commenced.
What are the supporting documents to be submitted along with an application?

  1. FOR ALL APPLICANTS:
    1. Allotment letter of the co-operative society / association of apartment owners.
    2. Copy of approved drawings of proposed construction/purchase/extension.
    3. Agreement for sale / sale deed / detailed cost estimate from architect / engineer for the property to be purchased/constructed/extended/renovated.
    4. If you have been in your present employment / business or profession for less than a year, mention on a separate sheet details of occupation for previous
    5. years, giving position held, reasons for change and period of the same.
    6. Application Processing Fees.
    7. Proof of Residence: Attested copy of any one of the following:
      1. Ration card;
      2. Passport;
      3. Driving Licence;
      4. Voters identity card;
      5. Current Telephone /Electric Bill /Gas Bill.
    8. Proof of Identity: Attested copy of any one of the following:
      1. Passport;
      2. Driving License;
      3. Voters Identity Card;
      4. Identity Card issued by Employers(if employed in State/Central Govt.)
      5. PAN Card
    9. Certificate of loan outstanding issued by the lender (for refinance cases only).
    10. Any other information regarding your repayment capacity that is necessary and will assist
      banks in appraising the loan proposal.
  2. IF YOU ARE EMPLOYED:
    1. Verification of Employment Form.
    2. Latest original salary slip / salary certificate showing all deductions.
    3. If your job is transferable, permanent address where correspondence relating to the application can be mailed.
    4. A letter from your employer agreeing to deduct the EMI towards repayment of the loan from your salary. This will expedite the processing of your loan application
    5. Your updated original Bank Pass Book/s or original Bank Statement/s Showing salary and savings entries for the last six months.
    6. A photo-copy of your Form-16 (issued by your employer) for the last Assessment year.
  3. IF YOU ARE SELF EMPLOYED:
    1. Balance Sheets and Profit & Loss Accounts of the business/profession Profession along with copies of Individual Income Tax Returns for the last three years certified by a Chartered Accountant.
    2. A note giving information on the nature of your business/profession, form of organization, clients, suppliers, etc.
    3. Copies of Individual Tax Challans for the last three years.
    4. Copy of Advance Tax Challan (if any.)
    5. Your updated original Bank Pass Book/s or Original Bank Statements/s showing savings entries for the last 12 month.
Who can be co-applicants?

Proposed owners of the property, in respect of which you are seeking financial assistance, will have to be co-applicants. However, all co-applicants need not be co-owners.
What is the maximum period in which I can repay the loan?

You can repay the loan over a maximum period of 20 years under both the FRHL(Fixed rate home loan) and the ARHL(Adjustable rate home loan) Repayment will not ordinarily extend beyond your age of retirement (if you are employed) or on your reaching 65 years of age , whichever is earlier.
When can I take disbursement of the loan?

You can take disbursement of the loan after the property has been technically appraised, all legal documentation has been completed and you have invested your own contribution in full. Own contribution is the total cost of the property less loan amount.
Do I get a tax benefit on the loan?

Yes, You are eligible for certain tax benefits on principal and interest components of a loan under the income Tax Act 1961 .As the benefits could vary each year, please do check out the current benefits available.