Home loan with Moneyedge

Home finance eligibility is always inversely proportional to the rate of interest. If the rate is more, eligibility will be less and vice-versa.

If you opt for a longer tenure, your eligibility will improve. EMIs too will be less. The only downside to this is that you will end up paying more interest.

Indian banks and financial institutions always recommend keeping the EMI to Income Ratio between 50 to 60 percent. This enables you to accommodate any future loans or to pay off existing loans if any. Do keep in mind that unsettled loans could affect your eligibility.

Banks also scrutinize your credit repayment history from CIBIL (Credit Information Bureau India Limited), which is the country's regulator and first credit information bureau. They keep detailed records regarding the credit history relation between you and lenders/creditors. A negative entry can bring down your eligibility significantly.

The most popular type of home loan is the loan for purchase of a new or a preowned home. This loan is also commonly available and is offered by many banks in different variants. The interest rate is either floating or fixed. It generally ranges anywhere between 9.85% and 11.25%. Most banks offer around 85% of the total amount as a loan.

Several banks offer loans for land purchase. Purchasing land is a flexible option, the buyer can save funds and construct a house whenever their finances allow or own the land as an investment. Up to 85% of the cost of the land is given as loan by lenders like MoneyEdge.

This loan is specially designed for people who want to construct a place according to their wishes rather than buying a pre-constructed house. The approval process for this type of loan is different as it takes into account the cost of plot as well. The most important clause when applying for a home construction loan is that the plot must have been purchased within a year for the plot cost to also be included in the loan amount. The loan amount is decided based on a rough estimate of the construction cost. The amount may be disbursed at one go or in multiple instalments. Popular home construction loans include the schemes offered by Bank of Baroda, UCO Bank and Canara Bank.

Thinking of making some changes to your home, like constructing an extra balcony? Some banks also offer loans for house expansion including alteration to current structure and construction of new rooms. HDFC Home Extension loan and house renovation loan offered by Bank of Baroda are popular in this category.

People who have already availed a home loan and have purchased a house with it but want to move to a new house can opt for home conversion loans. By transferring the current loan to a new house, borrowers can fund the purchase of the new home and also need not repay the previous home loan.

Though it offers convenience, this home loan segment is also very expensive.

There comes a time when renovation and repair work like external and internal repair, painting, construction of overhead water tanks and electrical renovation might become a necessity. But if you lack the finances to carry these out, banks like Union Bank of India,Vijaya Bank offer specialised home improvement loans.

This option can be availed when an individual wants to transfer their home loan from one bank to another owing to reasons like lower interest rates or better services offered by the other bank. This is done to repay the remaining loan at a revised, lower interest rate offered by the other lender.

Specially designed to support non-resident Indians in buying a residential property in India, the formalities and application procedure for this type of loan is different from the others. Generally, most of the private and public sector banks offer NRI loans as a product of their housing loan portfolio.

Bridged Loans are short term loans that are designed for existing homeowners who are planning to purchase new property. It aids borrowers to fund the purchase of a new house until a buyer is identified for the existing property. This type of loan usually requires the mortgage of a new house with the bank and is extended for less than two years. Several banks like Vijaya bank and HDFC offer bridged loans.

Not a widely known segment of home loans, stamp duty loans are offered to cover the stamp duty charges during the purchase of a property.

1. Documents for Home Loan

• Loan application form.
• 3 photographs passport sized.
• Identify proof
• Residence proof
• Bank Account Statement/Passbook for last 6 months.
• Signature verification by bankers of the applicant.
• Liabilities statement and Personal Assets.
• Property detailed documents
• Salary Certificate (original) from employer. (For salaried individuals)
• Form 16/IT Returns for the past 2 financial years. (For salaried individuals)
• IT Returns/Assessment Orders copies of the last 3 years. (For self-employed professionals)
• Challans as proof of Advance Income Tax payment. (For self-employed professionals)
• Proof of business address for non-salaried individuals. (For self-employed professionals)
• IT returns/Assessment Orders copies of the last 3 years. (For self-employed Business owners)
• Challans as proof of Advance Income Tax payment. (For self-employed Business owners)

2. NRI Loan applicants are generally required to submit the following documents along with duly filled loan application form to avail a NRI home loan:

• KYC Documents
• Copy of valid passport and visa
• Copy of valid address proof
• PAN Card or Form 60 (If customer does not have a PAN card)
• Passport size photographs of applicant/co-applicant(s)
• Any of the following identity documents:
  • Driving License
  • Voter ID Card
  • Job card issued by NREGA duly signed by a state government officer
  • Documents issued by Govt. Departments of Foreign Jurisdiction (Social Security Card, Work/Resident Permit, Green Card etc.)
  • Letter issued by the Foreign Embassy/Mission in India
  • PIO/OCI Card issued by Government of India
  • Stamped and notarized declaration with Ration Card/Passport of parents/grand-parents/spouse of PIO to establish their Indian citizenship
  • Proof of Income
• Bank statements including NRE/NRO accounts for last 6 months
• Credit Bureau Report
• Details of the ongoing loans of the business entity and the individual along with photocopy of the sanction letter
• Photocopy of the employment contract, appointment letter or offer letter
• Embassy attested Salary Certificate/Slip (for salaried NRI applicants)
• Balance Sheet/Profit & Loss Account of past years (for non-salaried NRI applicants)
• Other Documents
  • Copy of the Allotment Letter/Buyer Agreement
  • Title Deed & Prior Deeds
  • Encumbrance Certificate
  • Land Tax Receipt (Latest)
  • Possession Certificate
  • Approved Building Plan
  • Property Sketch
  • Any other documents as required by the bank

3. Compulsory Documents

Salaried

1. PAYSLIP OF 3 MONTHS
2. 6 MONTHS SALARY CREDIT STATEMENT
3. FORM 16 (2 YEARS)

Self Employed

1. ITR (3 YEARS)
2. BALANCE SHEET & PROFIT & LOSS A/C
3. PROOF OF BUSINESS ADDRESS