Home Loan

• Identity Documents
  1. Photograph
  2. PAN, Aadhar Card, Election ID card or Passport
  3. Aadhar Card, Election ID card, Passport, Utility Bill
  4. Documents of property being purchased

• Income Document – Salaried Applicant
  1. Salary Slips for last 3 months
  2. Form 16
  3. Income tax returns for previous 3 years
  4. Bank statement for last 6 months
  5. Detail of existing loans in business with repayment schedules

• Income Documents – Self Employed
  1. Complete financial statements for last 3 years
  2. Income tax returns for last 3 years
  3. Bank statement of Current & Saving accounts
  4. Detail of existing loans in business with repayment schedules

• Floating Rate increases / decreases with the changes in the market rate and monetary policies of Reserve Bank of India.
• Fixed Rate does not change during the entire duration of the loan irrespective of any change in the market conditions.

The borrower also has the option to switch from one type of rate to another as per the policy of the financial institution.

Generally bank charges a one-time processing fee before sanctioning a loan.

Loans are repaid in the form of equal monthly instalments over the tenure of the loan (EMI).

• Prepayment means repaying a part of the loan in advance and is generally allowed by a financial institution. However, there can be restriction on the maximum number of times a loan can be repaid during a year.
• Foreclosure means complete repayment of loan ahead of schedule. Foreclosure of loan is generally allowed without any charge.

The tax benefit on home loan is divided into two sections-

1. 1. Tax exemption on repayment of the home loan principal: This is the deduction allowed under Tax Section 80C with a maximum annual tax deduction of Rs, 150,000 under the section.
   2. Tax benefit on the interest rate for home loan- Under Section 24 of the Income Tax Act, you can avail the tax benefit on the amount of interest paid on a home loan to the maximum limit of Rs. 2 lakhs for a self occupied property.
   3. Tax benefit for Joint Borrowers: In case of joint home loans, each of the co-borrowers is eligible to receive a total of Rs. 3.5 lakhs (1.5 lakhs under section 80C + 2 lakhs under section 24) as tax exemption. Hence, if a married couple co-signs for a home loan, they can claim a total tax exemption of Rs. 7 lakhs on their home loan.

• Identity Documents
  1. Photograph
  2. PAN, Aadhar Card, Election ID card or Passport
  3. Aadhar Card, Election ID card, Passport, Utility Bill
  4. Documents of property being mortgaged

• Income Documents – Salaried Applicant
  1. Salary Slips for last 3 months
  2. Form 16
  3. Income tax returns for previous 3 years
  4. Bank statement for last 6 months
  5. Repayment schedule of existing loans

• Income Documents – Self-Employed
  1. Complete financial statements for last 3 years
  2. Income tax returns for last 3 years
  3. Bank Statement of all current and savings bank account
  4. Detail of existing loans in business with repayment schedules