New Delhi: The repo rate cut by RBI on June 6 has paved the way for a big cut in home loan interest rates. Repo rate is the rate at which the RBI lends to the banks. It directly runs in sync with interest rates; if the repo comes down, so will the lending rates of banks. The central bank has also cut the cash reserve ratio (CRR) by 100 basis points to 3% which is expected to inject over Rs 2.5 lakh crore liquidity into the banking system and stimulate lending by the scheduled commercial banks.
Following the rate cut, Punjab National Bank (PNB) has already announced a reduction of 50 basis points in lending rates. Home loans interest rates are bound to fall now and EMIs would decreaseo. All real estate developers are predicting a rise in home loan applications. Therefore, if one is looking for a home loan, then this is the best time. But a home loan also calls for a number of documents. Let’s see what are these.
Documents to be required
One must furnish all the important documents before applying for the home loans. Let us see what are the documents one would need to get a home loan
- Loan application form (to be obtained from the bank or from website)
- Passport sized photographs
- Identify proof (Aadhar, Voter ID)
- Residential proof
- Bank Account Statement/Passbook for the previous 6 months.
- Signature verification by bankers of the applicant.
- Liabilities statement; personal assets
- Detailed property assessment.
- Salary Certificate (original) from employer. (for salaried individuals)
- Form 16/IT Returns for the past 2 financial years. (for salaried individuals)
- IT Returns/Assessment Orders copies of the last 3 years. (applicable to self-employed professionals only)
- Challans as proof of advance income tax payment (applicable to self-employed professionals only)
- Proof of business address for non-salaried individuals. (applicable to self-employed professionals only)
- IT returns/assessment orders copies of the last 3 years. (Businessmen having their own enterprise)
- Challans as proof of advance income tax payment (Businessmen having their own enterprise)
The Reserve Bank of India’s recent repo rate cut has significantly lowered interest rates for home loans. This article details the impact of the rate cut, explains why now’s the ideal time to apply, and lists the necessary documents for a home loan application. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
