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Eligibility Criteria
If you want to take a loan from a bank, you will have to meet a specific set of eligibility criteria. Moreover, you will have to show proof of the fact that you fulfill the eligibility criteria and this proof will be in the form of various documents that are to be submitted to the bank.
The Eligibility Criteria
If a person wants to take a loan against property, then he/she must take cognizance of the following rules:
» The minimum age of the person should be 21 years
» The maximum age with respect to salaried individuals is 60 years and for self employed individuals is 65 years
» The minimum net income should be Rs. 150,000 per annum. However this amount varies from one city to another and from one bank to another
» The Minimum loan amount that a person wants to apply for should not be less than Rs 200,000. However this amount varies from one city to another and from one bank to another
» The Maximum Loan amount should no be more than Rs 15 crores. However, this amount is varies from one city to another and from one bank to another
» If you want to take a loan against your residential property then you will get around 65% of the market value of the property
» The minimum work experience that salaried individuals must have is 3 years and more of continuous employment
» A self employed individual needs to be in the same line of business for more than 3 years.
Documentation for Resident Indians
When you choose a loan, you must go through a documentation process, which at times, is long drawn out. However, it's important that you submit all the documents pertinent to the loan that you are taking otherwise your loan application will be rejected.
First and foremost you will need to submit your complete loan application form along with your passport size photograph.
Here are some of the other documents you need to submit for various purposes.
Proof of Identity of the Prospective Borrower
Here are some of the documents that can be submitted as proof of identity:
» PAN Card
» Driving License
» Defense Identity Card
» Voter's Identity Card
» Passport
...And many more
Proof of Residence of the Prospective Borrower
Here are some of the documents that can be submitted as proof of residence:
» Electricity Bill
» Post Paid Mobile Bill ( In Some Cases)
» Property Tax Receipts
» Life Insurance Policy
» Passport ( Can be used both as proof of residence and proof of individual's identity)
» Telephone Bill
...And many more
Proof of Age
A person also needs to submit his/her age proof. They can do so by submitting one amongst the following documents:
» Passport
» HSC School Leaving Certificate
» The LIC Policy which clearly states the age of the applicant
» Premium receipts of the LIC that also indicates the age of the applicant
» Employer Letter that confirms the age of the applicant
» Birth Certificate
» Voter's Identity Card
Financial Documents
These documents are very important, as without these a bank cannot judge your capability to pay back the loan:
For Salaried Individuals
» The latest IT returns that are acknowledged, along with, bank's statement for the last 3 months
OR
» The latest salary slip, which also has information about statutory deductions, along with Form 16
For Proprietors/Self-Employed Individuals
» Profit and Loss balance sheet of the preceding two years that has been certified by a C.A. and also copies of acknowledged IT returns of the preceding two years, as well as, last six months bank statements.
OR
» A C.A certified computation of the income earned by the individual for the last 2 Years
For Partnerships
» Profit and Loss balance sheet of the preceding two years that has been certified by a C.A. and also copies of acknowledged IT returns of the preceding two years, as well as, last six months bank statements, Letter of Authority, Proof of Office, and the Partnership Deed
OR
» A C.A certified computation of the income earned by the individual for the last 2 Years