You are currently viewing How to get a bank loan for your residential property

How to get a bank loan for your residential property

Share to someone you can help

 

In this article, you will know how to get bank loans for your residential property and what are things you should be keeping in mind before applying for a bank loan.

Availing loans from the bank is an easy job, not the way you thought it would be, it’s a lengthy and forever no ending process. 

In this article, you not only know about what are the documents and eligibility criteria in addition to that you will know what happens after you submit the documents.

It’s mostly in general about how all the banks follow the procedure. It might have slightly different procedures depending upon bank to bank. 

Let’s get to know what are the different types of home loans you will get and at the end of this article you will find the procedures.

Types of home loan 

  1. Land purchase loans/ plot loans: This is one of the most preferred types of loan most would prefer,  to buy the piece of land or for residential construction according to their needs.

These loans enable you to borrow from the lender for buying Plot/Land.

Benefits of owning Land/Plot Loan

  • Get loans from 75% to 80% 
  • Longer tenure options of 15 years 
  • Easy balance transfer options to other banks 

Eligibility Criteria to get Land/Plot loan

  • 18-65 years 
  • Salaried or self-employed 
  • Credit score 700 and above 

Processing and other charges 

  • Average processing min 3000 or .05 of the loan amount 

Documents required to get Plot/Land Loan

  • Age proof 
  • Income proof 
  • Property document 
  • Land /plot related documents 
  • Layout drawings / Plot 

Time process 

  • 10-15 working days if every document is clear 

 

  1. Home purchase Loans.                                                                                                                                   These loans are provided to purchase your desired type of residence like Villa Apartment Rowhouses Individual constructed houses.

Benefits of getting home purchase loan

  • Get loan upto 90%

 

Eligibility Criteria to get Land/Plot loan

  • 18-65 years of age 
  • If you are a employee you should have 2 years of minimum experience 
  • If you are self employed you should have a minimum of 5 years of experience.
  • Credit score should be 750 for both Employee and self employed.

Processing fee and other charges 

  • 3000 or 0.5 percent of total sale consideration of sale value 

 

Documents required to get a home purchase loan. 

  • Age proof 
  • Address proof 
  • Income proof 
  • Identity proof 
  • Existing loan proof 
  • Documents of the property you want to purchase

 

3. Home construction Loan

These are the loans provided if you already have land that you own and want to construct a house, these loans are disbursed according to the construction stages of your home. 

Benefits of getting home construction loan 

 

Eligibility criteria for a Home construction loan 

  • 18-65 years of age 
  • If you are an employee you should have 2 years of minimum experience 
  • If you are self-employed you should have a minimum of 5 years of experience.
  • The credit score should be 750 for both employees and self-employed.

Documents required for a home construction loan 

  • Age proof 
  • Address proof 
  • Income proof 
  • Identity proof 
  • Existing loan proof 
  • Documents of the property.

 

  1. Home improvement loan 

These loans are provided for constructing additional floor or room or any kind of construction extension you want to do for your home, if you don’t have any savings that can afford the cost of extension you can easily avail this loan.

Benefits of owning Home improvement loan 

 

Eligibility criteria for Home improvement loan 

  • Age 18-65
  • Salaried 
  • Self employed 
  • Professionals 

Documents required for Home improvement loan 

  • Age proof 
  • Address proof 
  • Income proof 
  • Identity proof 
  • Existing loan proof 
  • Documents of the property.
  • Estimated quotation of the improvement plan  

 

  1. Balance transfer 

If you already have home loan and repaying it now and if you want to switch over to a different loan provider, the major reason for switching over to another lender mainly for the lower interest rates and if you need any top up on the existing loan

Benefits of balance transfer

  • To get lower interest rates 
  • Additional top up on existing loan 

 

Eligibility criteria for balance transfer 

  • Age 18-65
  • Past history of repayment track without failing to repay on time 

Documents required for balance transfer 

  • Age proof
  • Income proof 
  • Address proof 
  • Property related documents 
  • Bank statement of loan repayment 
  • Loan statement  

 

How does the bank process go on after submitting documents?

In this section of the article, I will be giving you the general aspects that every bank or NBFC goes through once you submit the document.

 

This process may not be common for every loan provider, every loan provider has their own protocol to follow before sanctioning loan amount, it’s just to make you understand what procedures that usually one follows.

 

Why does delay happen for your loan sanction? 

This might have different reasons depending upon which lender you choose for, in this modern-day and age due to its high competition Everyone is quick.

 

It usually takes 10-15 working days, if any delays happening probably the below reasons might be causing you the super delay in sanctioning a home loan.

 

If all the documents are in place how much time does it take?

 

What is the technical valuation of the property?

 

How to get instant approval and sanctioning a Home loan?

 

Leave a Reply