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Different banks provide different service charges. The different service charges are processing Fee which charges 1% of loan Amount and prepayment charge which is 2% of the loan amount. There are different types of home loan. The different home loans are

  • Individual Home Loan
  • Home Improvement Loan
  • Home Extension Loan
  • Home Loan for NRI’s
  • Plot Loan.

Though we have house, we might think of extending it, for that home extension loan is there and sometimes the house may be old, for that home improvement loan is present. If somebody doesn’t have home at all, then to help them, plot loan is there. The interest rates are different depending upon the amount. Even the interest rates depend upon the year of repaying the loan amount. For amounts less than 30m lakhs, the interest rate is 8.75% for five consecutive years. For amounts more than 30 lakhs the interest rate is 9% for first five consecutive years.

The applicant should arrange all documents before applying for loan. This will help the applicant to get loan easily. Bank requires important documents to certify that the applicant is eligible to get the loan. The documents are identity proof, address proof and age proof. The applicant can submit

  • Passport
  • Photo PAN Card
  • Photo ration card
  • Voter's identity card
  • Driving license
  • Defense identity card
  • Government identity card for identification purpose.

The applicant can submit the following documents for address proof. The documents are

  • Passport
  • Ration card
  • Society outgoing bill
  • Telephone (land/mobile) bill
  • Electricity bill
  • Driving license
  • Voter's identity card
  • Life Insurance Policy.

The documents which can be submitted for age proof are

  • Passport
  • Birth certificate
  • Valid driving license
  • Voter's identity card
  • School leaving certificate
  • LIC Policy or Premium receipt clearly indicating the applicant's age
  • Letter from the employer stating the age of the employee.

Another important point is that passport only can be used for both personal identities as well for address proof. These are the personal documents to be submitted for loan. The important financial documents are salary slip for employees and salary certificate for self-employed applicants