As the most populous city in of one of the largest states in the country, Indore has a number of people who live and work there. The city is also popular as a location for higher education and it has also become a popular tourist destination over the years. As of the 2011 population census, the city had a population of close to 20 lakh.
There are a number of people who wish to buy housing property in the city and these people are covered by banks and NBFCs that offer them loans for the same. Here are details of which institutions offer the same and what other details need to be noted before applying for a loan.
Indore is one of the many cities in which it is easier, relatively speaking, to get a loan for financing activities related to property purchase, expansion, and so on. The table below lists a few of those institutions:
|Karnataka Bank||Sundaram BNP Paribas Home Finance|
|Kotak Mahindra Bank||Aditya Birla Capital|
As with all loan amount disbursements, there are certain criteria that a person needs to fulfil in order to be considered eligible to receive the loan. Here are some of the generic criteria for the same:
? While not all home financing institutions allow it, the minimum age required to apply for a home loan is 18 years. The age limit can sometimes be 21 years also. Again, with the maximum age limited, it can vary from 65 years to 70 years of age. This depends on the institution that will be granting the loan.
? While the person applying for a loan can either be self-employed or employed by a business, the annual net income should be over Rs.5 lakh.
? Credit ratings matter. A good credit rating is necessary to be able to obtain a loan.
? While it does not matter if the person applying for the loan owns their current place of residence or not, as long as they have resided there for a year prior to applying for the loan.
? While the institution will fund a maximum of close to 80% of the total amount required for purchase/expansion/renovation of a given property, it is the responsibility of the applicant to raise the rest of the amount required for the same.
Home loans are typically obtained for high amounts. This requires proper verification before disbursement and for this purpose, KYC documents are mandatory. Here are details of what kind of documents are likely to be required:
|Type of documentation||Purpose||Permitted documents|
|Identity proof||This is to provide a photographic identity and to provide a proof for the given address||
|Income proof||This is to serve as proof of income which indicates that the loan applicant can meet their obligations||
|Loan application form||To serve as a request for a loan application||
|Other documents||To serve as additional proof for the institution granting the loan||
Home loans can be offered for a variety of purposes, not just for buying a house. The purpose could be purchase, or renovation, or expansion. Some of these reasons and the loans that are granted for the same are stated in the table given below:
|Home Loan type/purpose||Details|
|Loan for new or pre-owned property||You can avail this if you want to buy property which could either be new or pre-owned.|
|Loan for construction of property||You can avail this loan if you want to construct a house or building on property that you already own.|
|Loan for property expansion||You can avail this loan if you wish to increase the size of your house or property.|
|Loan for home improvement/renovation||You can avail this loan if you want to redesign, or redecorate, or renovate your property.|
|Loan for NRIs||You can avail this loan if you are an Indian citizen residing in a different country and want to buy or own property in India.|
A home conversion loan is also an option that people have when it comes to home loans. It is also possible to get the benefit of a home loan balance transfer in order to acquire the benefits of a lowered interest rate.
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