Home Loans

The home loan applicant should be at least 21 years of age and should have a regular income source. The loan needs to be terminated on or before the applicant turns 65 years of age. Along with this, applicant needs to furnish a minimum of 6 months of income proof.

LOAN AMOUNT

The loan amount differs in all the NRI applicants depending on various numbers of factors like income, age, qualifications, number of dependants, income stability, etc.

However, you can increase the loan amount in various numbers of ways. If the applicant has a earning spouse or fiancée, they can increase the loan amount by applying together as co-applicants. For this, you need to submit your proof of marriage. Additional securities like fixed deposits, LIC policies and bonds will enhance your loan eligibility. However, the most important factor is the repayment ability of the applicant. The total cost includes transfer charge, stamp duties and registration charges.

DOCUMENTS REQUIRED FOR HOME LOANS

For Self-employed applicant, below documents are required:

  1. Copy of pass book or copy of the applicants accounts statement for the past 6 months.
  2. Copy of the applicants ration card.
  3. Applicants business mentioning including the nature of business, suppliers, client list, employee strength and geographical spread, etc.
  4. If the business is in partnership, the copy of partnership deed, 3 years P & L a/c, B/S, income computation certified by CA along with individual income tax computation and tax returns for 3 years.
  5. In the case of proprietorship, 3 years P & L a/c, B/S, income certified by a CA and an income tax return file.
  6. If the applicants business is a Pvt. Ltd. three year’s remuneration certificate, the company’s annual report, the board resolution for fixing remuneration and individual IT returns.

Documents Required For Employed Persons:

  1. Latest certificate of salary or the original slip.
  2. Copy of Form no.16 A (TDS Form) from the employer’s applicants.
  3. The original certificate for all the other allowances from the employer’s applicants that are not mentioned in the salary slip.
  4. A copy of the applicant’s bank pass book or statement of the applicant’s bank accounts for last 6 months.
  5. A copy of the applicant’s voter ID along with the applicants Company's ID otherwise the applicant’s passport / ration card.
  6. Passport size photograph of both the applicant & co-applicant.

The loan will be approved once the property is selected and all the required legal documents are submitted. Each document is verified before processing the loan to safeguard the safety of the applicant. The 371 Clearance and the 230 A Clearance of the seller from the appropriate income tax authorities are also needed if applicable. Once the above documents have been submitted & verified, the bank disburses the registration of the conveyance deed, loan amount and investment of the applicant's own contribution. The disbursement is always in the favour of the builder.

Documents Required For Disbursement:

  • Loan agreements
  • Disbursement requests
  • Post-dated cheques
  • Personal guarantors’ document

STAMP DUTY

  1. In accordance with the STAMP ACT, stamp duty is payable.
  2. Stamp duty is paid on the agreement value of the market value whichever is higher.
  3. On the basis of the stamp duty ready reckoner which is issued by the Indian government every year on January 1st, the stamp duty authorities determine the market value of any property.
  4. Only document with a paid stamp duty is considered a legal document and it is considered as the suitable evidence in the law court.

After paying the stamp duty on the document, the property needs to be registered in the respective district with the Sub Registrar. All the documents need to be registered as per the provisions of the Registration Act, 1908. All the parties furnishing the document need to admit in front of the Sub Registrar of assurances that they have well executed the document that has been presented for registration. Two independent witnesses further indentify the parties.

Photographs and left hand thumb impressions of the parties are taken and both these are later attached on the additional pages of the documents. The Sub Registrar records the whole content of the document. If any particular documents that requires a compulsory registration is not registered then, the legal title is not issued on the purchaser. The title in such a case is considered as defective and the documents could be presented in the court of law.