Check Also: Home Loan
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Features and Benefits of Pre-Approved Home Loan
Mentioned below are some of the features and benefits of availing a Pre-Approved Home Loan.
- Exclusive special offers
- Quick processing
- No or minimal documentation
- Instant online sanction
- Low processing charges
- Attractive Interest Rates
- Repayment tenure of up to 30 years
- High loan-to-value ratio of up to 90%
Pre-Approved Home Loan Interest Rates and Charges
The table below shows the rate of interest and charges levied by some of the leading providers on a Pre-Approved Home Loan.
|Provider Name||Interest Rate||Processing Fee*|
|SBI||7.90% onwards||0.40% of the loan amount|
|Bank of Baroda||8.55% onwards||Rs.7, 500|
|ICICI Bank||8.65% onwards||0.25% of the loan amount|
|Bajaj Finserv||9.05% onwards||Up to 1.20% of the loan amount|
* Goods and Services Tax (GST) as applicable will be levied in addition to the mentioned charges.
Pre-Approved Home Loan Eligibility Criteria
Mentioned below is the eligibility criteria to avail a Pre-Approved Home Loan.
|Eligible Profiles||Existing or Non-existing, Salaried and Non-salaried customers having a successful track record of repayments|
|Age||Minimum: 21 years|
Maximum: 70 years
|Credit Score||700 or above|
Pre-Approved Home Loan Documents Required
Following are the documents required to successfully apply for Pre-Approved Home Loan.
|Salaried Individuals||Self Employed Individuals|
|Duly filled in and signed the application form with photographs||Duly filled in and signed application form with photographs|
|Employer identity card, address and age proof||Identity, address and age proof|
|Salary slip of last 3 months||3 years’ ITR and financial statements, including balance sheet, profit & loss account, schedules. (documents must be certified by a CA)|
|Bank statement of the past 6 months||Bank statement of the past 6 months|
|Form-16 and Income Tax Returns (ITR) details||● Business License Details (or equivalent)|
● TDS Certificate (Form 16A, if applicable)
● Certificate of qualification (for C.A./ Doctor and other professionals)
|● Property documents of the proposed property|
● Documents of co-applicant (if applicable)
● Any other document as per the conditions mentioned in your sanction letter or as per the property identified
Check Also: Home Loan Tax Benefits
Apply for Pre-Approved Home Loan
Customers can apply online for Pre-Approved Home Loan simply through the Internet Banking facility provided by the bank/HFC.
Check Also: Home Loan Balance Transfer Facility
Q1. What is the validity period of a sanction letter?
In most cases, the sanction letter is valid for a period of 6 months. However, this number may vary from lender to lender. The borrower must finalize a property before the expiry date mentioned in the letter.
Check Also: Home Loan Process
Q2. How do banks decide the eligibility for a Pre-Approved Home Loan?
Various factors such as income, liabilities, repayment capacity, credit score, etc, are taken into account for deciding upon the eligibility of a customer.
Check Also: Home Loan Eligibility Calculator