Purchasing a house comes with a requirement for substantial funds. Many buyers thus prefer to avail a home loan to finance such purchase. Courtesy the rising popularity of housing finance; the top seven Indian cities have experienced a 12% growth rate in the housing loan market. Also, a 19% rise was noticed for the loan segment in other parts of the country between 2013 and 2019. The availability of home loans online has also become a contributor to this residential real estate drive.
All About E-Home Loan Eligibility Criteria and Documents Required
E-housing finance is an entirely digital process that offers convenient and faster approval contrary to the traditional paper-based method of obtaining this advance. Nonetheless, before availing such a facility, individuals must be aware of the qualifying parameters and documents required for an e-home loan.
Eligibility Criteria for E-Home Loans
Similar to any other loan facility, an excellent financial profile is required for any Indian resident who opts for housing finance. Both self-employed and salaried applicants can avail the funds by fulfilling required eligibility. The e-home loan eligibility criteria also include –
Self-employed – 25 – 70 years.
Salaried – 23 – 62 years.
A minimum of Rs.25,000 monthly salary suggests the lower threshold of income criteria.
- Work experience
Self-employed – A minimum of 5 years of business continuity.
Salaried – At least three years of employment experience.
- CIBIL score
A credit score above 750 is an added eligibility that helps secure an online home loan with better terms.
For example, applicants who hold a promising financial record with no history of previous defaults, high credit rating, etc. can negotiate their e-home loan interest rates with their lender.
Documents Required for E-Home Loans
Along with a duly filled application form, lenders also require a few important documents that can verify the eligibility parameter for an e-home loan.
KYC documents are widely regarded as proof of individuals’ identity, address, and age. These documents are authorised by the government and hence accepted across all lenders. So, the following KYC documents required for e-home loan can verify these three aspects of borrower eligibility.
- Driving license
- Voter ID
- Birth certificate
- Ration card
- Various utility bills
- 10th class pass certificate
- Income and business proof
When it comes to income proof, home loan eligibility criteria for salaried individuals and self-employed applicants are different.
- Salary slips for a minimum of the past three months
- Employment proof from the employer
- Form 16
- ITR for the previous three years
Providing a promotion or increment letter would add to an applicant’s eligibility for the housing loan.
- Past three years’ IT returns filed
- Business or professional practice license
- Business accounts statements attested by a C.A.
- Registration certificate or lease deed of the establishment
Besides, the applicant must also submit a few property documents to complete the application process.
Property Documents Required
- Detailed cost estimation of house construction
- The original copy of allotment letter, sale deed or stamped sale agreement with an authorised builder
- Occupancy proof if the property is ready to move in
- Utility, maintenance, and tax receipts of the property
- Advance payment receipts
- An approved blueprint of the construction plan
- Original copy of the land’s tax payment
- Account statement or receipt verifying the payment to seller or builder
- NOC from builders and sellers
Factors That Can Affect E-Home Loan Eligibility
Getting acquainted with the mandatory eligibility parameters and documents required for e-home loan is essential to start the application process. Individuals should, however, also known factors that can affect their home loan eligibility.
- Credit profile with a past record of default in payments
- Current CIBIL score
- Existing monetary commitments as debt
- Monthly earnings
- Respective property
- Location of the property
However, the fundamental factors that can adversely affect borrowers’ eligibility are their credit history, score and income. So, individuals should always prioritise timely loan repayment and also try to increase their income by adding proof of business earnings or investment returns with the documents to get a home loan online quickly.
Also, acquiring an online housing loan with lenders who approve with minimum paperwork and simple qualifying criteria is required for a hassle-free application processing.
Some lenders also reduce the hassles of loan processing with their pre-approved offers. These offers are also applicable to several advance facilities like loans against properties and home loans. Moreover, borrowers can take a look at their pre-approved offer by entering their contact details.
Lastly, depending on the loan amount and eligibility, documents required for e home loan may vary. Different lenders may also require additional documents that prove applicant eligibility. However, the list, as mentioned earlier, is the most accepted documentation for e-home loans in India by major financial institutions.