One of the basic human requirements- of a shelter or a roof over our heads can either be fulfilled by renting a home or by buying one. Buying a home is a great idea when an individual is ready to settle in a particular place and has the financial means to pay for the property. Home Loans are one of the best debt instruments that can be utilized when purchasing a home. Along similar lines are home construction loans that can be utilized to build or construct a residential property. The features of these loans are different from those of Home Loans.
Banks and Non-Banking Financial Companies (NBFCs) provide Home Loans to eligible candidates who satisfy all their specified conditions. Home Loans have a lower rate of interest as compared to unsecured loans as the property being bought acts as a mortgage security until the amount borrowed from the lender is repaid in full, along with the interest.
The eligibility criteria and required Home Loan documents vary from one financial institution to the other.
So, there is a necessity to check the basic guide of Home Loan eligibility criteria before selecting any lender. The basic eligibility criteria of Home Loans are as follows:
Lenders provide Home Loans of a minimum value that generally ranges around Rs 30 lakhs and the maximum amount is around Rs 10 crores.
The minimum and maximum Home Loan amount that can be borrowed are determined by the financial institution after considering the city or town of the applicant; similarly, the minimum income condition for the applicant is decided based on the city.
The documentation requirements for a Home Loan generally include the following:
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.