Are you thinking about moving into a bigger house but are worried about the money you’d need? Or have you been planning to renovate your house but are facing financial constraints?  

Banks and other financial institutions, these days, offer a range of home loans to prospective home buyers. 

The criteria for home loan eligibility is quite easy to fulfill for salaried employees as well as self-employed individuals. Here they are:

  • Your age must be between 24 to 65 (at the time of completion of your home loan)
  • You should be a salaried individual or self-employed
  • Your CIBIL score should be at least 750 or above 

Additional Read: 5 Ways to Boost Your Home Loan Eligibility

Once you have checked your eligibility, the next step would be to know of the documents needed for home loan

Know what are Documents required for home loan

Before you apply for a housing loan, you need to have the following documents ready:

A. Age Proof:

  1. Life Insurance Policy
  2. PAN Card
  3. Passport
  4. Birth Certificate
  5. Driving License
  6. School Leaving Certificate

B. Photo Identity Proof

  1. Aadhaar Card
  2. Voter ID
  3. PAN Card
  4. Driving License
  5. Passport
Home Loan Documents

C. Address Proof

  1. Bank Statements
  2. Property Tax Receipt
  3. Voter ID
  4. Utility Bills
  5. Property Registration Documents

D. Employment Details

  1. Appointment letter
  2. A true certified copy of Form 16
  3. Salary slips of the last three months
  4. Annual increment letter

E. Income Proof

  • Copy of bank statements of your salary account of the last six months

F. Loan Details

  • Details of any current loan along with bank statements

G. Processing Fee Cheque

  • To be issued from the salary account for a salaried customer or the business account in case of self

Despite having all the documents required for a loan in order, your loan application could still get rejected. Here are a few ways to better your chances:

A. Choose a longer loan tenure

Home loans with a longer tenure can improve your loan eligibility because the EMI that you will have to pay will be low. It makes you more likely to make your payments on time and allows you more time for repayment.

Additional Read: Top Factors Affecting your Home Loan Tenure Decision

B. Improving your CIBIL score

Lenders consider your CIBIL score as a critical determinant to approve or reject your loan application. A credit score of above 750 makes you a sound candidate for home loans. It also allows you to negotiate low home loan interest rates.

C. Having an additional source of income

Your eligibility can also improve with an additional source of income. This can include part-time business, rental income, rent from equipment or machinery, etc.

D. Adding a co-applicant

You could add an earning family member with a strong credit score as a co-applicant. This also increases the amount you are eligible to borrow as a home loan since your EMI affordability rises.

Lay your financial worries to rest and consider applying for a loan when you are planning to purchase a house or make renovations to your existing one. Tata Capital could be your perfect companion on your journey to owning your dream home.

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