Home loans are available from banks and other financial organizations for the acquisition of financial assets. You can also use this amount to purchase, build, renovate, or extend your home and repay it over a specified period. The property secures home loans, and if you don’t pay back the loan, the lender can seize the property and sell it to recoup the debt.A home loan’s eligibility is determined by the applicant’s income, credit history, property valuation, and location. The maximum loan amount is calculated using these factors.
TYPES OF HOME LOANS WE PROVIDE
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Features and Benefits Of Home Loan
Here are some of the essential characteristics and benefits of home loans that you should be aware of.
1. The application process is simple
Visiting a bank’s physical branch to apply for a loan typically takes a lot of time and effort. Furthermore, you’ll need to complete several documents and forms. However, with Insta Loan Services, every process is straightforward. All you have to do is fill out a short application form and supply the required documentation and submit them.
2. Adaptable Tenor
You will be given the option to repay your home loan based on the loan you are taking. Furthermore, the Insta Loan Services will decide the certain repayment period. It will be flexible, enabling you to arrange your budget and avoid any financial hardship.
3. Committed Support
There’s no doubt that banking and related activities like loans, the entire process can sometimes be quite confusing and tiring. Not with Insta Loan Services, as you get hardworking relationship managers and total time and satisfaction. Therefore, you can have all your questions and concerns addressed at any time throughout the entire process. Furthermore, you can receive support anytime after the application is complete and know anything regarding processes like repayment, interest rate, and others.
4. Minimum Interest Rates
You can get home loans with a minimum interest rate per year if you are employed or self-employed. Furthermore, we promise customized home loan deals with no hidden fees and loan consolidation at a low-interest rate.
To expedite the application and verification process, make sure you meet all of the essential criteria before applying for home loans. Insta Loan Service has distinguished the eligibility for salaried and self-employed workers, which you can follow below.
- Age: The first parameter is the individual’s age applying for the home loan. To apply for a house loan as a salaried individual, you must be at least 21 years old. Furthermore, you can apply for a home loan until you are 70 years old if you are a government employee with a pension. However, if you work for a private company, you can only apply until you are 60 years old.
- Employment: You will be required to work for a public sector undertaking company, government institution, or public companies such as private limited companies or limited companies when it comes to your employment. Furthermore, you can apply if you work for a proprietorship firm such as an individual proprietorship or a HUF, a partnership firm such as an LLC, a multinational corporation, or an institution administered by a proprietorship firm.
- Documents: You’ll need to provide your KYC documents and income tax returns from the previous two years. In addition, an application form, bank statements from the last six months, salary stubs, and documentation connected to the property you’re using as collateral for a housing loan.
- Age: When applying for a housing loan, you must be at least 23 years old and no more than 70 years old. Furthermore, you can seamlessly apply for a house loan if you are a CA, a qualified doctor, and an architect. Plus, if you are a business owner, a partner in a partnership firm, a corporation director, or a sole proprietor.
- Documents: You must provide your application form, KYC documentation, bank statements from the previous six months, ITRs from the last two years, and collateral documents.
Query Related to Home Loan
Several factors determine your Home Loan eligibility. The basic guidelines apply to both salaried and self-employed workers. Some banks require self-employed people to have a higher take-home pay percentage.
- Your Current Income:- Salaried persons must present three months’ worth of tax forms as well as a bank statement showing where their paycheck was deposited in the previous six months. Self-employed professionals must provide a one-year statement of accounts in which they get credits for services rendered.
- Continuity of employment/business:- Salaried employees can use their income tax returns, Form 16, Form 26AS, and other documents to prove their job continuity. To establish the links, they can also show a statement from the Provident Fund account. Income tax returns and other financial documents, including a balance sheet and profit and loss statements, can be filed by self-employed businessmen and professionals.
- Current Obligations:- An applicant may have outstanding personal loans, vehicle loans, or other loans for which they’re making monthly payments. When calculating Home Loan eligibility, you must account for these installments as well.
- Credit History:- The applicant’s repayment track record is really important. CIBIL or other bureaus track every borrower’s loan activities. They create your credit history profile and quantify it by calculating your credit score based on this information. This is a number that ranges from 300 to 900. The higher your credit score, the more likely you are to get approved for a loan. Defaults, repeated loan requests, and missed payments, to name a few examples, can all lower your credit score. For evaluating HL eligibility, a score of 600 or higher is deemed fair.
- Value of the Property:- The price of the property you buy is essential. The cost of the project that the financing bank will finance must be determined. Banks often finance up to 75% to 90% of the property’s value (also known as LTV or Loan to Value Ratio), with the remaining amount being your contribution, or margin, as they call it.
- Legal Position:- A mortgage on the land and building they have financed is the primary security for every house loan. It would be best first to form the mortgage and then register it with the appropriate registering authorities. To do so, you must have the legal authority to create the mortgage. As a result, banks and financial institutions demand a legal scrutiny report from their panel of lawyers, who conduct a 30-year search to establish the ownership chain.
- Age of the Borrower:- The borrower must be at least 21 years old when applying for a house loan. In general, the age of maturity should be 65 years old. Some institutions have increased the time limit to 70 years.
Every customer must adhere to RBI’s Know Your Customer (KYC) guidelines. You must submit documentation pertaining to your KYC, employment, business, and earnings.
- Identity Proof:-
- Aadhar Card
- PAN Card
- Voter ID
- Driving License
- Address Proof:-
- Lease Agreement
- Aadhar Card
- Registered Rent Agreement
- Driving License
- Latest electricity or gas bill
- Signature Proof
- Loan application form duly filled
- Property Documents:-
- Copies of any property records dating back 30 years can be used to prove the line of ownership.
- Certificate of encumbrance for 30 years
- If you live in the property being mortgaged, a receipt for property taxes paid is required.
- Income Proof Documents:-
- If you’re a salaried employee, you’ll need your latest six months’ receipts (In addition, you can provide IT returns for the past three years along with Form 16).
- If you are self-employed, IT returns for the previous three years are required (Some banks accept two years of IT returns).
- A statement of your account for the previous year showing where your salary has been credited (in the case of salaried people).
- In the case of self-employed people, a profit and loss statement and a balance sheet for the last two years are required.
- If applicable, sales tax and GST registration certificates.
- In the case of partnership firms, the partnership deed is the legal document that acts as a link between the partners (if the applicant is one of the partners).
- In the case of limited corporations, a certificate of incorporation is required (if the applicant is one of the directors).
- Documents Required from Non-Resident Indians (NRIs) Applications:-
- Valid passport and visa (attested copy)
- Employer identity card
- Proof of address, including the present abroad address.
- Employees of the merchant navy should have a copy of their Continuous Discharge Certificate (CDC).
- PIO card is given by the Government of India (for PIOs)
- Documents must be attested by FOs/Rep. Offices, Overseas Notaries Public, Indian Embassy/Consulate personnel, or Indian Branch/Sourcing outfits officers.
- Completed and properly filled out – home loan application.
- Three passport-size photos.
- Identity proof (anyone):- Passport/Voter ID Card/PAN/Driving License
- Residence proof (anyone):- Recent copy of Gas Bill/Utility Bill/Driving License/Passport/Aadhar Card.
If you’re unsure how to get a home loan, you can apply for one online using Instaloanservices’ website. Also, you can visit our nearest branch or call our customer service department. When you decide to receive a home loan, fill out the application online to expedite the process.
Applying for a House Loan can be a complex procedure, and information on Home Loans can be confusing because each bank has its own Home Loan plan and interest rate. Comparing individual prices and making an informed decision can become tough.
Instaloanservices can assist you in gathering all of the information in one place, allowing you to compare the various rates on a single screen. In addition, depending on your demographics, income, and repayment capacity, we can assist you in securing the greatest home loan arrangement. We can help you with many elements of your home loan because we have over 30 years of experience. This includes assisting you in selecting a bank that offers the following services:
- The lowest rate of interest.
- Easy documentation.
- Lowest processing fee.
- The fastest loan processing time.
- Foreclosure terms and prepayment of mortgage installments.
- Transaction fees such as the cost of establishing a mortgage and paying stamp duty.
Our home financing experts can assist you with
- Check your profile.
- Analyze your previous repayment record.
- Acknowledge the various policies used by banks to finance home loans.
- Understand the fine print, particularly when it comes to home loan offers that appear to be too good to be true.
Poor credit score, late loan repayment, credit report error, the employer not falling into the lender’s lending category, frequent job changes, incomplete documentation, borrower’s age, property issues, not obtaining No Dues Certificate from previous lenders, high level of debt, and so on can all cause your home loan application to be rejected.
To avoid being rejected for a home loan, ensure that:
- Your business or job is stable (from the last two years at least.)
- You have a good credit score (650 or above.)
- Your documentation is accurate and complete.
- The property you want to buy is on the lender’s list of approved properties.
- Your previous lenders provide you a ‘No Dues Certificate.’