
What
is Home Loan?
• The home loan is an amount of money that an individual borrows from a
bank or money lending company at a certain rate of interest to be
paid with the EMI every month. The property is taken as a security by
the money lending company for the Home Loan.
•
The
property can either be commercial or personal in nature.
•
When
the borrower cannot pay the dues, the lender will possess all the
legal rights to recover the outstanding loan amount by the sale of the
property in question.

Types
of Home Loans:
•
Home
Purchase Loan: This is the loan that one takes for purchasing a home.
•
Home
Improvement Loan: This loan covers expenditure related to repairs of
your home or even renovation.
•
Home
Construction Loan: This loan comes in handy when you are building a
new house.
•
Land
Purchase Loan: Someone wishing to buy a plot of land for constructing
his/her own house can avail this loan.
•
Home
Extension Loan: Suppose you plan to add another room, garage,
bathroom or kitchen to your home. This is the loan that you should
apply for and this also comes in handy if you are planning to have
another floor.
•
Joint
Home Loan: These are loans taken by two people or even more. For
instance, spouses can apply for joint home loans.
•
Home
Loan Balance Transfer: You can use this mechanism to switch your
outstanding loan amount to a different lender with better terms and
conditions and lower interest.
•
Top
Up Home Loan: This kind of loan helps you borrow some more money
above the outstanding loan amount. There are attractive rates of
interest offered by several organisations depends upon your profile
and property area.

Summary of Initial documents to apply home loan are as mentioned below:
Salaried
Applicant
-
Application form with photograph duly signed.
-
Identity, residence and age proof.
-
Last 6 months bank statements.
-
Last 3 months Salary-slips.
-
Processing fee cheque.
-
Form 16 / Income Tax Returns.
Additional
Docs for SEP / SENP:
-
Proof of business existence.
-
Business profile.
-
Education qualification certificate and proof of business existence.
-
Last 3 years Income Tax Returns with computation of Income.
-
Last 3 years CA Certified / Audited Balance Sheet and Profit &
Loss of Account.
Download Complete Document Checklist HERE