What is a Home Loan?
A home loan, also known as a housing loan, is offered by Satyanarayan Finance in to help individuals purchase, construct, or renovate a residential property. The borrower repays the loan in monthly installments (EMIs) over a predefined tenure, usually ranging from 5 to 30 years.
Key Features of Home Loans
Loan Amount: Borrowers can get up to 75-90% of the property value as a loan, depending on their income and repayment capacity.
Tenure: Flexible repayment periods, typically ranging from 5 to 30 years.
Interest Rates: Offered as either fixed (constant rate) or floating (varies with market conditions) rates.
Prepayment Options: Borrowers can make prepayments or foreclose the loan to save on interest, often without extra charges.
Top-Up Loans: Option to avail an additional loan on the existing home loan for other financial needs.
Tax Benefits: Offers tax deductions under Sections 80C and 24(b) of the Income Tax Act for principal and interest payments, respectively.
Benefits of Home Loans
Affordable Home Ownership: Helps you buy or build your dream home without needing to pay the full cost upfront.
Lower Interest Rates: Compared to personal loans, home loans usually have lower interest rates.
Capital Appreciation: Investing in real estate often results in long-term value appreciation.
Builds Credit Score: Timely EMI payments improve your credit profile.
Financial Flexibility: Long tenures and EMIs reduce the burden of large one-time payments.
Tax Savings:
Section 80C: Deduction of up to ?1.5 lakhs on principal repayment.
Section 24(b): Deduction of up to ?2 lakhs on interest paid.
Section 80EE/80EEA: Additional benefits for first-time homebuyers.
Eligibility Criteria for Home Loans
Eligibility varies across lenders but generally includes the following:
Age:
Salaried: 21–60 years
Self-Employed: 21–65 years
Income:
Salaried: Minimum monthly income requirement (?25,000 or more, depending on the lender).
Self-Employed: Stable income and a minimum annual profit requirement.
Employment Stability:
Salaried: Minimum of 2 years of work experience.
Self-Employed: Minimum of 3 years in current business/profession.
Credit Score: A good credit score (750 or higher) increases loan approval chances.
Property Valuation: The property being purchased/constructed must meet the lender’s approval criteria.
Documents Required for Home Loan
Here is a list of commonly required documents for a home loan application:
1. Identity Proof (any one)
PAN Card
Aadhaar Card
Passport
Voter ID
Driving License
2. Address Proof (any one)
Passport
Utility Bill (Electricity/Water/Gas)
Aadhaar Card
Ration Card
3. Income Proof
For Salaried:
Latest 3 months’ salary slips
Last 6 months’ bank statements
Form 16 or Income Tax Returns (ITR)
For Self-Employed:
Income Tax Returns (last 3 years)
Balance sheet and profit & loss statement (CA-certified)
Bank statements (last 12 months)
4. Property Documents
Sale agreement or builder-buyer agreement
Title deeds
No Objection Certificate (NOC) from the builder/society
Approved building plan
5. Other Documents
Passport-size photographs
Proof of down payment
Loan application form (duly filled)
RATE OF INTEREST AND TENURE: 3% AN D 1 TO 20 YEARS