A Home Loan is a secured loan provided by banks or financial institutions to help individuals purchase, construct, or renovate a residential property. The property in question is mortgaged as collateral until the loan is repaid in full.

Advantages of Home Loan

  1. Ownership of a Dream Home
    Enables you to purchase your desired house without making a full upfront payment.

  2. Tax Benefits
    Under Section 80C and Section 24(b) of the Income Tax Act, borrowers can claim deductions on principal and interest paid on the loan.

  3. Low Interest Rates
    Home loan interest rates are relatively lower compared to personal loans due to their secured nature.

  4. Flexible Repayment Tenure
    Repayment tenures can extend up to 30 years, making EMIs affordable.

  5. Appreciation in Property Value
    Investment in real estate often results in value appreciation, providing long-term financial gain.

  6. Balance Transfer Facility
    Option to transfer the loan to another lender at a lower interest rate.

  7. Home Renovation/Extension
    Loans are also available for repair, renovation, or expansion of existing property.


Eligibility Criteria

While eligibility may vary by lender, the general criteria include:

  1. Age :Salaried: 21 to 60 years  Self-Employed: 25 to 65 years

  2. Income :Minimum monthly income requirements depend on city and lender policies.

  3. Employment Type :Salaried individuals with at least 2-3 years of job experience.Self-employed professionals with a stable business record.

  4. Credit Score :A good credit score (650 and above) enhances loan eligibility and better interest rates.

  5. Repayment Capacity :Lenders evaluate monthly income, liabilities, and other EMIs.

  6. Co-Applicant Option :Adding a co-applicant (spouse/parent) can increase eligibility.

Documents Required

For Salaried Individuals:

Identity Proof (Aadhaar card, PAN card, Passport, Voter ID)

Address Proof (Utility bill, Rent Agreement, Passport)

Latest 3-6 months’ salary slips

Form 16 or latest 2 years’ ITR

Bank statements of the last 6 months

Employment Certificate or Appointment Letter

Property documents (Agreement to Sell, Title Deed, etc.)

For Self-Employed Individuals:

Identity and Address Proof

Business proof (GST registration, trade license)

Income Tax Returns for last 2-3 years

Profit & Loss statement, Balance Sheet (CA-certified)

Bank statements (6–12 months)

Property-related documents