Home loan

Overview of Home Loan

A Home Loan is a long-term financial solution designed to help individuals and families purchase, construct, renovate, or extend a residential property. It enables customers to own a home while repaying the loan in affordable monthly installments over a flexible tenure.

Home loans are offered by banks and NBFCs at competitive interest rates, with repayment tenures extending up to 30 years, making home ownership more accessible and financially manageable. Depending on eligibility, applicants can avail funding for new homes, resale properties, construction projects, or home improvement purposes.

At Vidhi Consultancy, we provide expert guidance throughout the home loan journey—from assessing eligibility and selecting the most suitable lender to documentation support and loan disbursement. Our focus is on securing optimal interest rates, transparent terms, and a smooth, hassle-free process.

A home loan not only helps fulfill the dream of owning a home but also offers tax benefits under applicable income tax laws, making it a financially prudent investment when structured correctly.

Benefits of Home Loan

A home loan is not only a pathway to home ownership but also a strategic financial tool that offers long-term value, stability, and tax efficiency. Key benefits include:

1. Affordable Home Ownership

Home loans enable individuals to purchase or construct a home without depleting their savings, allowing repayment through manageable monthly installments over an extended tenure.

2. Attractive Interest Rates

Compared to other forms of credit, home loans are offered at relatively lower interest rates, making them a cost-effective financing option.

3. Flexible Repayment Tenure

Borrowers can choose repayment tenures of up to 30 years, helping balance EMIs with overall financial commitments.

4. Tax Benefits

Home loan borrowers can avail tax deductions on:

• Principal repayment under Section 80C
• Interest paid under Section 24(b)
  (as per applicable income tax laws)

5. Higher Loan Eligibility

With the option of adding a co-applicant, borrowers can enhance loan eligibility and secure a higher loan amount.

6. Asset Creation & Long-Term Value

A residential property is a tangible asset that typically appreciates over time, contributing to long-term wealth creation.

7. Transparent & Regulated Financing

Home loans are governed by RBI regulations, ensuring structured processes, transparency, and borrower protection.

8. Improves Credit Profile

Timely repayment of home loan EMIs strengthens the borrower’s credit history and overall financial credibility.

At Vidhi Consultancy, we help clients leverage these benefits by structuring home loans with optimal interest rates, suitable tenures, and seamless execution.

Documents Required for Home Loan

1. Identity & Address Proof
   • PAN Card (mandatory)
   • Aadhaar Card / Passport / Voter ID / Driving License
   • Recent passport-size photographs
2. Income Proof
   • For Salaried Individuals:
     • Latest 3–6 months’ salary slips
     • Form 16 or Income Tax Returns (last 2–3 years)
     • Last 6 months’ bank statements (salary account)
   • For Self-Employed / Business Owners:
     • Income Tax Returns with computation (last 2–3 years)
     • Audited financial statements (P&L, Balance Sheet)
     • Last 6–12 months’ bank statements (business & personal)
3. Employment / Business Proof
   • Employment confirmation letter / ID card (for salaried)
   • Business registration documents (GST, Shop Act, Partnership Deed, MOA/AOA, etc.)
4. Property Documents
   • Agreement to Sell / Sale Deed
   • Approved building plan & allotment letter (if applicable)
   • Property tax receipts
   • Occupancy / Completion Certificate
   • Chain of property documents (as required)
5.  Other Documents
   • Processing fee cheque (as applicable)

Eligibility Criteria for Home Loan

Home loan eligibility is determined based on the applicant’s financial profile, repayment capacity, and creditworthiness. While criteria may vary across banks and NBFCs, the following standard parameters are generally considered:

1. Age Criteria
   • Minimum age: 21 years
   • Maximum age at loan maturity:
     • Salaried: up to 60–65 years
     • Self-employed: up to 70 years
2. Employment Status
   • Salaried Individuals:
     Employed with a reputed private company, MNC, or government organization with stable income.
   • Self-Employed / Professionals:
     Business owners, entrepreneurs, or professionals with a minimum of 2–3 years of business continuity.
3. Income Requirements
   • Minimum monthly income as per lender norms
   • Stable and consistent income source
   • Higher income improves loan eligibility and sanction amount
4. Credit Score
   • A CIBIL score of 700 or above is preferred
   • Higher credit score ensures better interest rates and faster approvals
5. Loan Amount & Repayment Capacity
   • EMI should generally not exceed 40–50% of monthly income
   • Loan eligibility is calculated based on income, existing liabilities, and tenure
6. Property Eligibility
   • Property must be legally clear and approved by the lender
   • Residential property only (new, resale, or under construction)
7. Co-Applicant (If Applicable)
   • Spouse or immediate family member can be added to enhance eligibility
   • Co-applicant income increases loan sanction amount

At Vidhi Consultancy, we assess eligibility accurately and recommend the most suitable lenders to maximize approval chances while ensuring financial comfort.