Everyone wants to live in a home that they can call their own. But with real estate prices soaring, buying a home with just your savings can be quite a hassle. The easiest solution is to apply online for a Home Loan which eases your financial burden significantly. Before applying for a loan, consider your finances and choose a home loan that suits your needs.

Research your options carefully, evaluate the EMIs, tenure, additional charges, and, most importantly, read through the fine print. To ease your home-buying experience, companies like Bajaj Finserv offer nil foreclosure charges and even provide refinancing options.

With a myriad of offers and packages, many banks and lenders try to encourage borrowers to avail of loans. You should know that Bajaj Finserv offers one of the best Home Loan Interest Rates in India. Let’s walk you through a few tips that will serve as a guide to qualifying for a Home Loan.

A Start to Finish Home Loan Guide

Are You Eligible for a Home Loan?

The first issue you need to address is whether you are qualified to apply for a Home Loan. The qualifications for a Home Loan depend on various factors such as:

  • Type of Employment:

    Housing Loan Eligibility and approval vary depending on whether you are a salaried individual, self-employed, or part of a company/firm. For a salaried individual, your monthly income is taken into consideration. If you are self-employed or part of a firm, you should have been in the business for a minimum of 5 years.

  • Age:

    You should be between the ages of 20 and 70 to avail of a Home Loan. Note that your repayment capacity is calculated by the number of earning years you have left.

  • Dependents:

    If you have many dependents, it means that your capacity to repay the loan is lower. This could result in a higher interest rate on your loan.

  • Existing Liabilities:

    If you’re currently repaying another loan, your eligibility reduces as you already have a financial liability.

  • Credit Score:

    Your credit score is a reflection of your financial stability and credibility. A good credit score may lead to quicker loan approvals and lower rates of interest.

  • Type and Age of the Property:

    A lender will investigate into whether the property is already built, or under construction. Properties that are more than 15 years old or properties auctioned by banks may delay your loan sanction.

With financial institutions like Bajaj Finserv, you can avail of loans starting from INR 30 lakhs all the way to a maximum of INR 15 crores.

What Documents do You Require for a Home Loan?

Here we list the standard documents required for a Home Loan. Some lenders may request additional documents based on their requirements and policies.

Depending on the Type of Employment

If you are a salaried individual:
  • Payslip of the last 3 months
  • Bank statement of the salary account for the last 6 months
  • IT returns / Form 16 (last 2 or 3 years)
  • A valid address proof
  • A valid ID proof such as a passport or a PAN card
  • Information on insurance, mutual funds and other savings
If You are Self Employed or a Business Owner:
  • Income tax returns for the last 3 years
  • Bank account statement for the last 6 months
  • Balance sheet of your business
  • Partnership deed in case of a partnership
  • Memorandum of Agreement in case of a company
  • IT returns/Form 16 (last 2 or 3 years)
  • Proof of Continuity for 5 years
  • A valid address proof
  • Valid ID of the individuals that have an ownership stake in the company
  • Information on insurance, mutual funds and other savings

Depending on the Type of Property

For an Under Construction Property:

  • Development plan of the property
  • No Objection Certificate (NOC) from the developer
  • The agreement between you and the developer
  • Mother deed of the plot

For a Resale Property :

  • Registration of the property by the seller
  • No Objection Certificate (NOC) from the bank (if there is a current loan taken by the seller that isn’t closed yet)
  • Mutation certificate from the municipality. Mutation of a property is a change or transfer of title entry in local municipal records.
  • Sale deed, conversion premium, or power of attorney to convert the leasehold property to a freehold property

With Bajaj Finserv, you can keep track of your documents and paperwork without having to leave the comfort of your home. You can also use a Home Loan Calculator available on the Bajaj Finserv website to help you estimate the cost of your Home Loan.

Stay well-informed of your Home Loan eligibility and your financial situation to take advantage of the benefits of a Home Loan and invest in a home that you will cherish forever.

Check your Home Loan Eligibility Apply for Home Loan Online