A Step-by-Step Guide to Home Loan Application Process

RBI’s decision to keep the repo rate unchanged has allowed financial institutions to offer home loans at a lower interest rate. With easy application and hassle-free disbursal, applications for housing credit are processed faster once the applicant submits all the essential documents. 

It is imperative for homebuyers to stay well aware of the financial institution’s eligibility criteria before disbursing a housing loan. It is also essential for the borrowers to know their financial obligations and apply for the loan amount accordingly to avoid any financial distress in future.

Read on to know more about the application process, eligibility and documentation.

Application process of home loan

Usually, the home loan application process varies from salaried to self-employed individuals. To know how to apply for a home loan, individuals can follow the step-by-step guide below:

For salaried 

Step 1- Firstly, borrowers need to visit the lender's official website and open the application form. In the form, borrowers need to fill in the employment, financial and personal details, including name, employer, income, years of service, property details, etc.

Step 2- Fill the application form by entering property details 

Step 3- You need to pay the security fee online to book a home loan with the respective housing finance companies. After that, a relationship manager will get in touch with you and explain the loan sanction and disbursal process.

Step 4- After the payment, borrowers need to upload all the necessary documents essential for a home loan application through the lender’s online portal. It is suggested to keep all the necessary documents scanned before beginning the home loan application process to ensure hassle-free loan applications.

For non-salaried

Non-salaried individuals can avail home finance from reputed HFCs by following the steps mentioned below:

Step 1- Applicants need to enter their personal details such as name, mobile number, PIN code along with employment status

Step 2- Now, one can verify the details with the OTP sent to their mobile number

Step 3- Individuals will be asked to provide necessary information regarding personal, financial, employment details along with the years of business establishment

Step 4- After filling in the details, individuals can submit the form. After that, a representative from the respective housing finance company will connect you to explain the loan details.

Thus, the home loan process is hassle-free and straightforward, which provides quick access to finances to purchase a house. Further, individuals can also avail home loan tax benefits and substantially save on principal and interest repayment.

To plan out their financials, individuals can also take the help of a home loan eligibility calculator to determine the loan amount they are eligible for, depending on their income and repayment capacity. Moreover, they can also use the home loan EMI calculator to figure out their monthly obligations and payable interest based on the current home interest rate. One can adjust the loan amount or tenor to arrive at the most suitable EMIs to avoid financial distress.

Besides knowing how to apply for a housing loan, individuals must meet the eligibility parameters and produce certain documents to ensure that their application is not rejected.

Eligibility and documentation of home loan 

Both self-employed and salaried individuals can avail credits by meeting separate sets of eligibility requirements. Check out the criteria mentioned below and apply based on your profile-

For salaried 

  • Must have a fixed income source

  • Must be within the age bracket of 23-62 years 

  • Applicant must be a citizen of India

  • One must have an experience of 3 years

For self-employed

  • Applicant must have a business vintage of more than  5 years 

  • Must be an Indian resident

  • One must be within 25-70 years 

Individuals need to apply with the following set of documents to reduce the loan processing time:

  • KYC documents

  • Income proof (latest salary slip for salaried applicant and profit-loss document and TR documents for self-employed individuals

  • Account statement of last 6 months

  • Business proof of at least 5 years

  • Passport-sized photographs

Further, applicants must provide a set of property documents for housing credit, such as sale agreement, an allotment letter, and additional documents.

Reputed housing finance companies can avail exclusive pre-approved offers online on a suite of secured and unsecured financial products for eligible borrowers. These offers simplify the loaning procedure and reduce the hassle of documentation. Intending borrowers can check their pre-approved offer by submitting their essential credentials.

 

Thus, by knowing the home loan application process in detail, individuals can conveniently apply for the credit and fulfil their dream of purchasing a house.



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