- A home loan is a type of loan provided by banks or financial institutions to help individuals purchase, construct, or renovate a house. It allows borrowers to buy property by paying a small down payment and repaying the rest in monthly installments (EMIs) over a fixed tenure.
- Features of a Home Loan
- 🏡 High Loan Amount: Depending on the borrower’s income and eligibility, lenders offer up to 80-90% of the property’s value.
- 🏡 Flexible Repayment Tenure: Borrowers can choose repayment periods between 5 to 30 years.
- 🏡 Low Interest Rates: Home loan interest rates are generally lower than personal loans and vary between fixed and floating rates.
- 🏡 Tax Benefits: Borrowers can claim deductions under Section 80C and 24(b) of the Income Tax Act for principal and interest repayment.
- 🏡 Prepayment & Foreclosure Options: Some banks allow prepayment with low or no extra charges, helping borrowers save on interest.
- 🏡 Balance Transfer Facility: Borrowers can transfer their existing home loan to another lender with better interest rates and terms.
- 🏡 Joint Home Loan Option: A home loan can be taken with a co-applicant, increasing loan eligibility.
- Eligibility Criteria for Home Loan
- Lenders assess an applicant’s financial stability before approving a home loan. The key eligibility factors include:
- ✅ Age: 21–65 years (varies by lender)
- ✅ Income Stability: A steady income from salaried or self-employed sources
- ✅ Employment Status: Salaried employees should have at least 2–3 years of work experience, while self-employed individuals need a stable business history
- ✅ Credit Score: A 750+ credit score is preferred for better loan approval chances
- ✅ Existing Loans & Debts: A low debt-to-income ratio improves eligibility
- ✅ Property Valuation: The property should be legally approved and meet the lender’s requirements.
- Documents Required for a Home Loan
- 📜 Identity Proof: Aadhar Card, PAN Card, Passport, Voter ID
- 📜 Address Proof: Utility Bills, Rent Agreement, Passport
- 📜 Income Proof:
- Salaried: Salary slips, Form 16, Bank Statements
- Self-employed: ITR, Business Proof, Profit & Loss Statements
📜 Property Documents: Title Deed, Sale Agreement, NOC from Builder/Society
📜 Employment Proof: Offer letter, Employment certificate (for salaried individuals)
Office Address: Laxmi Narayan Finance Pvt Ltd
Location:
F-35, Office No.345 Parkash Complex second Floor, 116/2 Shivaji nagar Behind Observatory Pune Maharashtra India -411005