It depends significantly on who applies for a loan whether it is an individual (salaried or self-employed), whether it is a sole proprietorship firm, a partnership firm or a limited company.
It depends on the value of the mortgaged property as mentioned in the agreement. A bank generally finances up to a limit of 60-80 percent of the value of the property as mentioned in the agreement.
If you are buying a flat for Rs 40 lakhs, you will get a loan of up to a maximum of Rs 32 lakhs (80 percent of Rs 40 lakhs). The difference between the value mentioned in the agreement and total amount actually paid (legal charges, stamp duty, registration etc) will have to be financed from the buyers own resources.
AGE OF APPLICANT
The minimum stipulated age for a borrower is 22-25 years and the maximum age varies between 58-65 years. The maximum age is the age at the expiry of the loan. For example, if your age is 45 years and the maximum age fixed by the bank is 60 years, you can get a loan for a 15-year tenure only.
The income determines the repaying capability of a borrower.If the income is lower than the required income level to service the instalments, a co-applicant can be added. The income considered in such a case will be of both the applicant and the co-applicant.
AGE OF PROPERTY
Whether it is a new property or under-construction property is significant too. The amount of loan disbursed depends also on this.
PURPOSE OF LOAN
The purpose for which a loan is sought to buy a site, built-up property, under-construction property, renovation of a property or to build a house is taken into account.
Once a property has been identified, you can approach a bank or housing finance company with the loan application.These are the documents that need to be submitted and charges paid at that time: Application form Processing fee (may be fixed or a percentage of the loan amount) Photographs of the applicant and co-applicant Income proofs of the appli cant and co-applicant PAN of both Address and ID proofs of both In case of a salaried individual (additionally): Employment certificate is sued by employer Copies of pay slips for last few months Latest Form 16 issued by em ployer Bank statements In case of self-employed individual (additionally): A brief note on the nature of business, year of establish ment, present bank, form of organisation and capacity in which the applicant is en gaged Statement of total income, income tax assessment or ders, and returns for the last few years Balance sheet and profit and loss account for last few years Copy of partnership deed (if it is a partnership firm) or copy of memorandum of as sociation and articles of as sociation (if it is a company) Other documents that may be required: Net worth statement of ap plicant and co-applicant Copies of LIC policies of ap plicants Details of family members in the prescribed format name, age, relationship, oc cupation, income Details of guarantor in the prescribed format with proof of income These documents related to the property being bought have to be submitted too: Original agreement with the builder or developer Tripartite agreement from builder or developer Certified true copy of ap proved plan Certificate by the legal advi sor of the builder that the property is free from encum brances and other charges Copies of receipts of pay ments made to the builder or developer Certified copies of all docu ments pertaining to the property along with up-to date no-encumbrance cer tificate After the receipt of the documents and information, the bank gets its own due diligence and verification done both of the applicant as well as the property. The bank also looks at the CIBIL score of the applicant to see whether there are any defaults or payment delays by the applicant in the past. A thorough technical analysis, including physical and legal verification of the property, is also conducted.
In case you meet all the criteria, the bank proceeds to disburse the loan amount directly in favour of the seller or builder.