Eligibility required to apply for a home loan
One must meet the below-given eligibility criteria which may vary from bank to bank in order to apply for a home loan:
- The applicant must have an age limit between 18 to 70 years. (Age limit may vary from bank to bank).
- He or she must be an Indian resident.
- Both salaried and non-salaried individuals can apply for a home loan.
- He or she must have a good credit score of at least 750 from a recognized credit agency.
- Salaried persons must be over the age of 21 at the time of loan initiation and under the age of 60 or superannuation at the time of loan maturity, whichever comes first.
- Non-salaried professionals must be at least an age of 21 years old at the time of loan initiation and no more than 65 years old at the time of loan maturity.
Documents required to apply for a home loan
To apply for a home loan, you must provide the documents indicated below:
- Duly filled application form
- Proof of identity: PAN Card (mandatory), Passport, Aadhaar Card, Driving Licence, Govt Employee ID, Voter ID and passport size photographs.
- Proof of address: Aadhaar Card, Driving License, Voter ID, Government of India Issued Photo ID, Govt Employee ID, Utility bills and Property Tax Receipt.
- Signature proof: Passport, PAN Card, Notarized affidavit with ID & Address proof
- Income proof for salaried individuals: 3 months payslip, 6 months bank statement, Form 16
- Income proof for self-employed individuals: ITR, Computation of Income, P&L, Balance sheet, Tax Audit Report, 6 months bank statements, CPC and tax paid challan (if required), and Business proof.
Tax benefits on home loan
Section 80C allows you to deduct the principal portion of your EMI for the year. The amount that can be claimed is limited to Rs 1.5 lakh. However, the house property must not be sold within 5 years of occupancy in order to claim this benefit. Apart from the deduction for principal repayment, a deduction for stamp duty and registration fees can also be claimed under section 80C, but only up to Rs 1.5 lakhs in total. In case the loan is availed jointly, each of the loan borrowers can claim up to Rs 2 lakh in home loan interest and up to Rs 1.5 lakh in principal payments u/s 80C. A home loan must be used to acquire or build a home, and the house must be constructed within 5 years of the end of the fiscal year in which the loan was undertaken. Section 24 allows you to deduct the interest part of your EMI paid for the year from your overall income up to a ceiling of Rs 2 lakh. This exemption is available from the year in which the house is constructed.
Home Loan Interest Rates
|Sr No.||Banks||Interest Rates In %|
|1||Kotak Mahindra Bank||6.65 to 7.30|
|2||State Bank of India||6.75 to 8.05|
|3||Bank of Baroda||6.75 to 8.60|
|4||ICICI Bank||6.75 to 7.55|
|5||HDFC Bank||6.75 to 7.65|
|6||Union Bank of India||6.80 to 7.40|
|7||Punjab National Bank||6.80 to 9.00|
|8||Central Bank of India||6.85 to 7.30|
|9||Punjab & Sind Bank||6.85 to 7.60|
|10||Bank of India||6.85 to 8.85|
|Source: Bank Websites|