Home Loan Eligibility and Documentations Required

There are also specific penalties that you have to keep in mind after you get the home loan. As soon as you receive your home loan, make sure you repay it as quickly as possible. Also, keep in mind that early payment might get you a prepayment clause. Banks earn their money based on the interest you pay them, and the faster and sooner you reimburse the loan, the lesser money you have to pay as the rate of interest.

Talking about penalties in home loans, if you choose to pay the entire loan before the tenure, a prepayment penalty is charged. Knowing about such corrections is much better than taking a loan and spending more and more in the form of such sentences. Good research about this also avoids the misunderstanding between you and the bank.

There are certain unique features of a Home Loan. They are listed below:

I. You can get Home Loan varying from Rs 2 lacs to Rs 200 lacs. Everything is dependent on your eligibility, income, and reimbursement capacity.

II. A home loan is a secured loan wherein collateral are needed.

III. The maximum loan tenure for a home loan is 20 years.

IV. A Home Loan processing fee is a one time charge paid by the home loan drawee to the bank.

V. Your age increases your chances of faster approval. For example, if you want a loan at a younger age, and you earn nicely. With age, your loan eligibility may come down if you have an excellent monthly income.

VI. You can also transfer the loan from one bank to another if required. This increases the chances of lessening the cost of the loan.

Let us go through the list of documentation required for all the applicants for the Oriental Bank Home Loan:

• Id Card of the Employer
• Duly filled application form with three passport size photographs
• PAN Card/ Voter ID Card/ Driver’s Licence - any of them as the proof of identity
• The present copy of Telephone Bills/Water Bill/ Electricity Bill/ Piped Gas Bill or a copy of Aadhar card/ Drivers License - any of them as proof of your Address.

Property Papers:

• Permission for construction document where applicable
• Registered Document for Sale (only for Maharashtra)/Allotment Letter/ Stamped document for Sale
• Certification of Occupancy if it is ready to move property
• Approved photocopy or a xerox blueprint and registered agreement of the builder, Deed of Conveyance for new property
• Bank account statements or payment receipts showing all payments done with the builder or Seller account

• Bank account statements of the past six months of all the bank accounts where you have an account.
• If previous loans are taken from different banks, then the loan account statement for the last year.

Proof of income for salaried applicant/ proof of income for Co-Applicant/ proof of income for Guarantor:

• Salary Slip or Salary certificate of the last three months.
• A copy of form 16 for the previous two years or the copy of I.T. Documents for the last two financial years, marked by I.T. Dept.

• Business address proof
• Last three years I.T. Returns
• The last 3 years Balance sheet and profit and loss account
• Details of Business License
• TDS Certificate
• Qualification certificate if you are a C.A./ Doctor or other professionals.

Eligibility Criteria for Home Loan

Eligibility criteria for a home loan have standard guidelines over all the banks and non-banking financial companies (NBFCs). Moreover, there could be a particular criterion for each lender as per their requirements. If you understand the eligibility criteria, it will lead you to a smoother process of application. The requirements are mentioned below:

• The age should be 18-40 years.
• The minimum income should be Rs 25,000.
• Credit score should be above 750.
• 2 years of work experience is required.
• The loan amount is to be decided by the lender.
• The LTV Ratio should be up to 90%.