A massive sense of accomplishment runs through whenever a person buys a home. It is one of the major financial decisions for an average household in India as the brimming rates of properties make it difficult. That is why, majority of homebuyers opt for a home loan to fulfil their dream of owning a home, which also gives them tax benefits. This year, if you have plans to buy a home, you should also consider taking a home loan from reputed lenders. It will help you save money for contingencies as you won’t pay the entire amount in one go from your savings.
You can easily avail of a home loan if all the required documents are in place. Here is the complete list of documents, you will need while applying for a home loan:
Identity Proof: It can be any of the following-
- Aadhar card
- Voter ID
- PAN Card
- Driving License
Address Proof: It is an essential document for a home loan, and can be either of the following-
- Driving License
- Aadhar Card
- Registered Rent Agreement
- Utility Bill (Less than three months old)
Financial Documents: Some of the essential financial documents for a home loan are-
- 6-months Bank statement
- Salary slip of last three months
- Form 16 for the last two years
- Passport size photograph
- Employment appointment letter from your employer in case of a salaried individual, if the current employment is less than one year old
Property Documents: These are the documents related to the property, which you want to buy-
- Sale deed
- Transfer of ownership
- A cancelled cheque needs to be presented to the bank for validation of your bank account.
- Some of the other essential financial documents are-
- For Salaried Individuals – 3-months salary slip, Form 16, bank statement
- For Self-employed Individual – IT returns of the previous two years with the computation of tax up to 2 years by a certified CA
- For Self-employed Non-professionals- IT returns of the last three years with the calculation of tax up to 2 years by a certified CA
- Duly filled home loan application form
Documentation of home loans is an essential part as it is the only way for the lender to know their customers. As the home loan is a secured loan, it requires a level of trust built between you and the bank or the lender to complete the process.
Why Should You Opt for a Home Loan?
- Home loan offers flexible repayment schedules. The loan repayments usually lasts for longer durations. In between its tenure, you can also choose prepayment for the remaining principal amount.
- Any principal repayment you make towards the home loan is deductible under section 80C of the IT Act 1961. Consequently, you can avail tax benefits.
- While taking a home loan, you also have the option to choose between floating or fixed interest rates, which you can select depending upon your requirements.
- Real-estate investment is a fruitful option for the long run as it gives better returns, depending upon the market.
These are only a few benefits of taking a home loan. If you are also thinking of buying a property in the future for investment or residential purposes, consider taking a home loan from reputable banks like Axis bank. They offer various features and benefits to its customers with one of the best interest rates on home loans. In addition to attractive interest rates, they also offer prepayment options with no charges, smaller EMIs and much more for your convenience.
One of every person’s dream is to buy a house where they can live happily with their families and build memories. Unfortunately, rising costs of real estate in the country can break this dream of an average Indian household. However, you can transform this dream into reality by applying for a home loan online. Make sure you know what defines your loan eligibility before applying for the same.