Features of Home Loan

Buying a home is a lifetime dream. Earlier people use to live in villages and often had some land of their own. This scenario has changed radically. In search of jobs and a better lifestyle, people are moving to cities especially metros. Once they begin to stay in metros like Delhi, they never go back to their hometown permanently and wish to build or buy a house there only. With this on the rise, the home loans too have risen. Indian citizens do not feel the burden of taking a low interest home loan. In fact, the ease of documentation and repayment has encouraged many to opt for loans.  This has empowered even the economically weaker section of the society to think towards buying a home.

Why is it easy to take home loans?

To understand the 'Why', it is vital to know the features of home loan.

·         Low interest rate: As the home loan is a loan against property in Delhi, and all over the country, the interest rates are usually low, ranging between 10 % to 10.5%.

·         If you have had a consistent income, then you also get to enjoy the Pre Approved status. This means that your loan is already approved. All you have to do is to fill the details and pay the processing fee.

·         A new feature called, 'Home Loan Insurance' is also added to provide comfort to the people who fear bank frauds.

·         When taking a home loan, you are allowed to chose the rate of interest as fixed or floating. This largely depends upon your source of income. If you are salaried, then you may opt for a fixed loan, else a floating loan.

·         The process of applying and getting the loan is rather quick and very easy.    

 

The documentation for salaried and self-employed individuals is also different. Below mentioned is the list of documents required for both.

·         Residence proof, Aadhaar card, Identity card, passport, age proof, and Pan card are the essential documents and needed in both cases.

·         Bank Statements: Last 6 month's statements needed for salaried as well as self-employed person.

·         Education qualification is required for the self-employed.

·         Salary slips: needed for both.

·         Form 16.income tax returns: Needed in both cases.

·         Proof of the existence of business for the self-employed

·         Last three years balance sheet (either audited or CA certified) for the self employed