Personal is an unsecured loan taken by salaried professional/self- employed individual from a bank or a non-banking financial company (NBFC) to meet their personal needs. It is provided on the basis of key criteria such as income level, credit and employment history, repayment capacity, etc. Personal loan is not secured against any asset, and the borrower does not put up collateral like gold or property to get it, and the lender can’t auction anything you own.
Documentation Required for Personal Loan:
The documents required to get a personal loan are different for a salaried professional and a self- employed individual.
For salaried applicants:
- Proof of Residence : Rent Agreement / Utility Bill (not more than 3 months old) / Passport (any one)
- Proof of Identity : Passport / Driving License / Voters ID (any one)
- PAN Card
- Income Proof : Latest 3 months Bank Statement / Salary slips for last 3 months
- 2 passport size photographs
For self-employed applicants:
- PAN Card
- KYC Documents: Proof of Identity, Address and Date of Birth such as Aadhaar Card
- Proof of Residence: Leave and License Agreement / Utility Bill (not more than 3 months old) / Passport (any one).
- Income proof (audited financial for the last 2 years)
- Latest 6 months Bank statement
- Office address proof
- Proof of residence or office ownership
- Proof of continuity of business
Q) What are the main factors that effects home loan?
Income : Income is the first and foremost deciding factor, because lender always think about the repay capacity of a borrower and lender will approve the loan based on your monthly income either you are a salaried professional / Self-employee individual.
Company Status/ Business age:Banks define companies in different categories based on varies factors, and depending upon these categories they decide the status of your firm. If you are a salaried professional, status of your company will decides the maximum loan and interest rates. If you are a self employed individual banks will consider the age of your own business in terms of their categorization.
Credit & Payment History:In order to sanction a loan banks do follow the credit history/ CIBIL score of every applicant. Positive payment history and better CIBIL score help to get the maximum loan amount at low interest rates.
Applicant Age: The maximum tenure for home loan is 30 years and because of this long tenure lenders consider that age also the deciding factor
Q).What is the maximum limit of home loan that I can get?
The maximum loan amount depending on various eligibility factors, and it is varies from lender to lender. Banks provide maximum upto 85% of loan against the value of property and it’s upto 15 Cr.
Q) What is the minimum salary to be eligible for Home loan?
Most of banks accept 25,000 as a minimum salary to be eligible for house loan and it may differ from bank to bank.
Q).Are self-employed individuals eligible for a home loan?
Yes, many lenders in the financial market offer housing loan to the self employed individuals. But the eligibility criteria may varies from lender to lender.
Q).What are the age limit for Home loan?
For a salaried professional eligible age: 23 years - 62 Years
And for self-employed individual eligible age: 25 Years - 70 Years
Q). What is the maximum tenure for home loan?
The maximum home loan tenure offered by all major lenders is 30 years.
Q). Can I get a 100% home loan?
No, as per RBI regulations the maximum amount you get is 85%
Q). How many types of home loans do the banks provide?
The various types of home loans that are generally available are:
- Land-purchase loan
- Home-purchase loan
- Home-construction loan
- Home-extension loans
- Home-improvement & Renovation loans
- NRI-home loans