Home loans from Aadhar Housing Finance Ltd.
Aadhar Housing Finance Ltd. is a financial organization ‘which was set up to provide housing finance mainly to the middle and low income groups of society. Established with the objective to promote faster growth of this sector, these home loans have been aimed at a target group which includes individuals who may be salaried, self-employed and earn agriculture based income. Aadhar Housing Finance Ltd. is promoted by the International Finance Corporation (IFC) along with Dewan Housing Finance Ltd. (DHFL) and currently has operations running in 9 Indian states.
Aadhar offers multiple home loans to suit different requirements, which are as follows:
Home loan for salaried employees, home loans for self-employed, home extension loan, home improvement loans, loan for plot purchase and/or construction and loan against property.
Features of Aadhar Housing Finance Ltd. Home Loans:
Aadhar offers various home loans, each with a unique set of features to address different needs. Following are the highlighting features of these home loans.
Home Loan for Salaried Employees:
- Avail this loan for an amount up to Rs 12 lakh (amount must not exceed 80% of the property cost).
- An affordable home loan which can also be availed by individuals with an income of Rs 5,000 per month onwards.
- Loan can be taken for a tenure of up to 20 years but must not extend beyond the applicant’s retirement age or for 60 years, whichever occurs earlier.
- EMI payable depends on factors like interest rate, quantum of loan and tenure of loan.
- You may apply for this loan either individually or jointly.
- This loan may be applied for by salaried employees like teachers, railway employees, police employees, 3rd/4th grade government / private employees.
Home Loan for Self-Employed:
- You can avail this loan for a maximum amount of Rs 12 lakh (amount must not exceed 80% of the property cost).
- One of the distinguishing features of this loan is that it involves minimal paperwork.
- Quick loan processing means that you get the money just as you need it.
- Maximum tenure allowed for this loan is 20 years and shall not extend beyond the applicant’s retirement age or 65 years, whichever occurs earlier.
- You can apply for this loan as an individual or jointly with a co-applicant.
Home Extension Loan:
- This loan may be used for the purpose of constructing an additional room or floors in an existing house.
- This loan can be availed for a maximum tenure of up to 20 years. The tenure shall not extend beyond the applicant’s retirement age or 60 years (65 years for self-employed applicants).
- EMI payable shall be dependent on factors like factors like interest rate, tenure of loan and quantum of loan.
- You may apply for this loan as a sole applicant or jointly with a co-applicant.
Home Improvement Loan:
- This loan may be used for the purpose of making improvements to the interiors of your home like repainting, flooring, roofing, plastering, plumbing, electrical work, replacing grills, doors, windows, parapet wall, boundary wall, underground/overhead water tank, etc.
- You may avail this loan for a maximum amount of up to Rs 12 lakh. However, the loan amount requested must not exceed 80% (for existing Aadhar Housing customers) / 50% (for new Aadhar Housing customers) of the cost estimated for the improvement work you plan to carry out.
- This loan is available for a maximum tenure of 10 years. The tenure shall not extend beyond the applicant’s retirement age or 60 years (65 years in case of self-employed individuals).
- EMI payable is dependent on factors like tenure of loan, quantum of loan and applicable interest rate.
- This loan can be applied for by individuals or jointly with a co-applicant.
Loan for Purchase and/or Construction:
- This loan may be used to purchase of non-agricultural land which is situated within the limits of the local/municipal development authority.
- This loan is available for a maximum amount of up to Rs 12 lakh. However the requested loan amount must not exceed 75% of the cost of the plot / 80% of the construction cost.
- You may avail this loan for a maximum tenure of 20 years. However, the tenure shall not extend beyond the applicant’s retirement age or 60 years (65 years in case of self-employed individuals).
Loan Against Property (LAP):
- This loan allows salaried or self-employed individuals procure finance against their property.
- This loan can be obtained for a maximum amount of up to Rs 12 lakh. However, the amount
- must not exceed 60% of the property cost.
- This loan is available for a maximum tenure of up to 15 years. The tenure must not extend the retirement age or 6o years (65 years in case of self-employed individuals).
Aadhar Housing Finance Ltd. Home Loan – Documentation:
To apply for any of the Aadhar Housing Finance home loans, applicants must provide the following documents.
- Photo ID proof – Passport / Driving License / PAN Card / Aadhar Card / Voter Card.
- Proof of Residence – Passport / electricity bill / telephone bill / Ration card / Letter from Employer / Bank Statement / Pass Book with address.
Self-employed Applicants – Employed Professionals & Businessmen:
- KYC documents.
- Last 3 month’s salary slip.
- Most recent Form-16 (if salary above Rs 17,000).
- Copy of all bank statements / passbooks for the last 6 months.
- Company’s Profile (if employed with a not so well known organization).
- KYC Documents
- Income Tax Returns for last 3 years (copy) along with calculation of income, duly attested by a Chartered Accountant.
- Balance sheet and P&L A/c for last 3 years, duly attested by a Chartered Accountant.
- Last 1 year’s bank statement for Savings & Current A/c.
- Partnership Deed (copy, if applicable)
- Tax Deduction Certificate / Form-16A (copy, if applicable)
- Contract Details (if applicable)
- Copy of tax paid/self-assessment tax paid Challan.
- Educational qualification certificate (only for self-employed professional applicants)
- Professional practice certificate copy (only for self-employed professional applicants)
- Certificate of salary (only for self-employed professional applicants who are also doctors with a salaried income).
Aadhar Housing Finance Ltd. Home Loan EMI Calculator:
Taking a home loan is a major decision which must be done with due consideration of one’s finances. Payment of regular EMI’s can affect one’s budget, hence it is helpful to know how much the loan is going to cost you. For that purpose, the Aadhar Housing Finance Ltd. Home Loan EMI calculator is a helpful tool. All you need to do is provide information pertaining to our chosen home loan like tenure of loan, interest rate and amount of loan. Armed with those details, the calculator shall display the EMI you will be required to pay.
- What are the factors to determine a salaried applicant’s repayment capacity?
An applicant’s repayment capacity is judged based on factors like their age, educational qualifications, stability / continuity of income, assets & liabilities, saving habits, number of dependents in the family, etc.
- What are the factors on which the self-employed applicant’s repayment capacity rests?
A self-employed applicant’s repayment capacity depends on the following factors:
- Applicant must be less than 65 years of age.
- Applicant is a self-employed trader or involved in the service industry.
- Applicant must have either inherited the current business they are engaged in or must have been in the present line of business for at least 5 years.
- Borrower must be able to contribute a minimum of 20% of the total amount required.
- Registration like that for Sales Tax or any other which is required as per local laws or by statutory authorities is mandatory.
- The business premises must not be present on encroached land without a title to the property or have been constructed out of accordance with the approved plan.
- Who can be a co-applicant on loans for self-employed and salaried individuals?
A co-applicant must be a family member of the applicant. It may be a spouse, parents or children.
- Is there any processing fee levied on home loans by Aadhar Housing Finance?
Yes, a processing fee of 1.5% shall be levied on the sanctioned loan amount.
- Is there a pre-payment fee levied on pre-closure of the home loan?
There is no pre-payment fee levied on home loans with a variable rate of interest. However, home loans carrying fixed rate of interest shall have a prepayment fee of 3% on the outstanding loan amount.