A guide to Home Loan process in India

A home is a special place for families where dreams are nurtured, moments are made, and lifetime memories are created with your loved ones. Today, owning a home is still a dream for many. Homeownership, apart from being a dream, also initiates a security factor for the individuals.

However, with the rising prices of real estate today, individuals may find it difficult to pursue this dream without some financial assistance. In such moments, a trusted companion emerges in the form of Home Loans.

DCB Bank stands with new and existing customers, extending unwavering support to transform the dream of home ownership into a tangible reality. With our tailored DCB Home Loan offering, we are dedicated to making this significant milestone an achievable and heartening experience for everyone.

Understanding a Home Loan

A Home Loan can be considered as a financial companion for individuals who are taking their first step towards home ownership. It implies borrowing a specific amount, repayable over a predetermined period, and accrued interest. It ensures that individuals can build or purchase a home without shouldering the entire financial burden upfront.

The Home Loan process with DCB Bank is a very simple and fast procedure, where after fulfilling the Home Loan eligibility criteria and documentation, applicants can obtain a loan from the bank.

Top Home Loan Benefits You Must Know

A Home Loan fulfills the aspiration of homeownership and introduces financial advantages that extend beyond the property purchase. The key Home Loan benefits you must know before you apply for Home Loan:

1. Affordability: A Home Loan significantly enhances affordability by requiring a manageable down payment, relieving borrowers from the burden of paying the entire property price upfront. This accessibility makes owning a home more achievable for a broader population segment.

2. Tax Benefits: Home Loan borrowers in India enjoy substantial tax deductions under Section 24 (b) and 80C of the Income Tax Act. These provisions encompass deductions for the principal amount and the interest paid on the loan, providing valuable financial relief. However, tax deductions depend on total income and applicable tax slab of the borrower. It is recommended that the tax exemption details are confirmed by a tax consultant or your Chartered Accountant or qualified professional.

3. Long Repayment Tenure: Home Loans are characterized by extended repayment tenures, streamlining the payment process for borrowers. The elongated tenure results in lower EMI payments, enhancing the affordability of the loan and minimizing financial strain.

4. Fast Home Loan Approval: The convenience of fast approval streamlines the Home Loan application process. Dedicated relationship managers will understand your needs and offer assistance throughout the entire loan disbursal process, ensuring a seamless experience tailored to your specific requirements.

5. Minimal Documentation: Home Loan applications often necessitate minimal documentation, simplifying the bureaucratic requirements associated with the borrowing process. This user-friendly approach enhances the overall experience for borrowers, reducing paperwork hassles.

How to Apply for Home Loan with Ease?

Here’s a step-by-step guide which simplifies the Home Loan process:

1. Evaluate Your Eligibility:

Start by assessing your financial standing, considering income, age, co-applicant's income, credit score, and existing debts. Determine your borrowing capacity based on income, assets, and liabilities.

2. Complete the Application Form:

Obtain the application form from DCB Bank's website or branch. Provide essential personal details, work history, income particulars, educational background, and information about the property.

3. Submit Required Documents:

Provide identification proof, address proof, income documents, bank statements, and property-related papers.

4. Pay the Processing Fee:

Fulfill the non-refundable processing fee requirement of up to 2% of the Home Loan amount per application (Minimum INR 5,000).

5. Review and Verification:

The lender reviews your application and may conduct a verification process, including a face-to-face meeting. Comprehensive assessments of personal, employment, and creditworthiness details are conducted.

6. Receive Approval and Sanction Letter:

Upon approval, the lender issues a sanction letter outlining the loan amount, interest rate, and terms. The reasons for the rejection are communicated to the applicant if the application is declined.

7. Legal Scrutiny and Technical Assessment:

A technical evaluation of the property involves inspection and property value assessment by a qualified professional. Legal checks ensure clear title and compliance with regulations.

8. Loan Disbursement:

Submit original property documents, seller details, necessary NOCs, and post-dated checks for the agreed duration. After completing legal requirements and signing the Home Loan agreement, the lender disburses the loan amount.

Are You Eligible for a Home Loan?

Looking to apply for a Home Loan but confused about the Home Loan eligibility? Let’s help you, here are the common eligibility criteria for securing a Home Loan:

• Age Criteria:
  - Minimum age: 21 years.
  - Maximum age: Salaried - Retirement age + 5 years; Non-salaried - Up to 65 years.
• Credit Score:
  - Your credit score must be above 700.
• Employment Status:
  - Salaried.
  - Self-employed Professional.
  - Self-employed Non-Professional.

What Is the Required Documentation?

Below is the list of Home Loan documentation that needs to be submitted when securing a Home Loan:

Application Form:

• Completely filled out the application form with the latest passport-size coloured photograph signed across.

Photo ID Proof (any one of the below mentioned documents):

• Aadhaar number, passport, PAN card, voter ID, driver's license, NREGA card, and letter issued by the National Population Register.

Address Proof (any one of the below mentioned documents):

• Aadhaar number, passport, voter ID, NREGA card, driving license, and letter issued by the National Population Register.

Age Proof (any one of the below mentioned documents):

• Birth Certificate, Government ID card, LIC policy, School Leaving Certificate, Aadhaar number, PAN card, passport.

Existing Loan Accounts:

• Details of all existing loan accounts.

Processing Fee Cheque:

• Submission of a processing fee cheque.

For Salaried Applicants:

• Salary account statement for the last 6 months.
• Salary slips/salary certificates for the last 3 months.
• Last 2 years Form 16, appointment letter from the company, and other supporting documents.

For Self-employed Applicants:

• Last 1-year bank statement of all business accounts or other accounts showing EMI deductions.
• ITR for the last 3 years with income computation.
• 2 recent GST returns.
• Trade license/statutory license.
• Qualification proofs - Highest qualification degree for professionals.

Apply For a Home Loan from DCB Bank Now!

Unlock the doors to your dream home effortlessly with DCB Bank's seamless DCB Home Loan process. Enjoy competitive interest rates, flexible repayment options, and a quick application process. DCB Bank is committed to making your homeownership journey smooth and hassle-free. Apply now and take the first step towards making your dream home a reality!