- Employment certificate from the employer,
- Copies of pay slips for last few months and TDS certificate.
- Latest Form 16 issued by employer Bank statements.
Home loan is really critical and important financial decision in our lives. Before you finalise your bank to secure home loan, try to get more information on current interest rates from different banks. First, gather some more information about how much each bank can give you.
After applying for a Home Loan there are lots of parts included in availing Home Loan starting with identifying your property to filling up the loan application form. Following are the important stages in Home Loan approvals:
How is my Home loan Eligibility Calculated
The borrower’s eligibility of getting a housing loan depend upon his/her repayment capacity & the banks establish this repayment capacity by considering various factors such income, spouse’s income, age, number of dependants qualifications , assets, liabilities, stability and continuity of occupation and savings history. Eligibility Factors in Housing loan Your Home Loan eligibility is determined by your repayment capacity and the value of the Property
- Spouse’s income
- No. of dependants
- Stability and continuity of occupation
- Savings history.
Tax Benefits in Home Loan
The home loan borrower enjoys Tax Benefits on both Interest paid & the Principal re-paid. Under Section 24(d) of Income Tax, the deduction of interest payable on the home loan is up to a maximum of Rs. 1,50,000.
Under Section 80(c) of Income Tax, Principal amount for the repayment of loan along with other savings & investments is eligible for tax deduction up to a maximum limit of Rs. 1, 00,000.
Documents required in Home Loan
Generally, the documents required to process your loan application are almost similar across all the banks; however they may differ with various banks depending upon specific requirement etc. Following documents are required by financial institutions to process the loan application:
- Age Proof
- Address Proof
- Income Proof of the applicant & co-applicant
- Last 6 months bank A/C statement
- Passport size photograph of the applicant & co-applicant
- Copy of audited financial statements for the last 2 years.
- Copy of partnership deed if it is a partnership firm or copy of memorandum of association and articles of association if it is a company.
- Profit and loss account for the last few years.
- Income tax assessment order.