[email protected]
AadhyaFinancialConsultancy > Home Loan

Best Home Loan in Mumbai

Home loan in Mumbai

Dreaming of owning a house in Mumbai but are overwhelmed by the complex formalities and conditions of home loans? Look no further… AFC is here to assist you!

Our Home Loan Advisory Service is designed specifically for catering to Salaried Individuals and Self-Employed Professionals. All this starts at just 8.4% p.a. along with personalized guidance and support throughout the process and beyond…

Fulfil your dream of owning a home in “आमची Mumbai” with our flexible and super simple approach for securing the financing you need.

Check your home loan eligibility and EMI calculator

Features & Benefits of home loan in Mumbai

  • Fitment expertise in home loans

Our home loan advisors come with 20+ years of experience.

  • Competitive interest rates

Secure the best home loan interest rates for your Home Loan needs.

  • Comfortable home loan repayment tenure

Enjoy a repayment tenure tailored for your comfort, spanning up to 30 years.

  • Quick home loan disbursal

Get a home loan within 24 hours.

  • Specialized balance transfer and top-up services

Utilize specialized services for balance home loan transfer and top-up options.

  • Hassle-Free and transparent procedures

Experience a seamless and transparent home loan process from application to disbursal.

  • Home loan post-disbursal support

Receive ongoing support and guidance even after you move to your dream home.

  • Tax benefits

Enjoy home loan tax benefits provided by the Indian IT Act’s Sections 24, 80C, 80EE, and 80EEA of the Indian IT Act.

Eligibility criteria for home loan in Mumbai

Home loan eligibility criteria are generally assessed by banks or NBFCs based on the following parameters: 

Repayment capacity 

Repayment capacity for self-employed business owners can be measured in various ways by home loan providers, including: 

Traditional

The conventional way of determining an applicant’s loan repayment capacity is through formal financial documentation and direct evidence of income. This method relies on standardized criteria and a thorough documentation process to assess the creditworthiness of a self-employed individual. Here’s what it typically involves: 

  • Income Proof. 
  • Business Stability. 
  • Age. 
  • Bank Statement. 
  • Debt to Income Ratio. 
  • Repayment History. 
  • Collateral. 
  • Qualification of Borrower. 

Non-Traditional 

The Non-Traditional or surrogate method in the context of Self-Employed business owner’s home loans is an alternative assessment approach used by Banks and NBFC’s when traditional proof of income is insufficient to capture the borrower’s true financial status.  

The assessment is done based on any of the below parameters.

  • Average bank balance. 
  • Gross Turnover. 
  • GST Returns. 
  • Asset-based lending. 
  • Liquid Investment Based lending. 
  • Repayment track record. 
  • Average EBITA. 

Repayment history 

Maintaining a positive repayment history, marked by on-time payments and responsible handling of various credit types, can enhance chances of being approved for a home loan, significantly. Here’s what it typically includes: 

  • Timely Loan Repayments 
  • Timely Credit card Repayments 
  • Utilisation of Other credit facilities 
  • Frequency of late payments 
  • Duration of credit history 
  • History of Defaults 

Collateral value 

Loan to Value (LTV) ratio for Self Employed home loans is determined based on the property’s value: 

  1. Agreement Value
    > Home loans can be sanctioned to the extent of 75-95% of the market value.
    > The remaining 5 – 25% is paid by the applicant as a Down Payment for Loan.
  2. Market Value of the Property 
    > It is determined by the empaneled valuers of the Bank or NBFC. 
    > The loan amount can be sanctioned to the extent of 75 – 90% of the market value, not exceeding 95% of the sales agreement value.

NOTE: In the case of Balance transfer of home loan, property value is determined based on market value.

Loan tenure 

Home loans can be availed for a minimum tenure of 1 year and a maximum tenure of 25 years. However, the borrower’s age at the time of loan termination should not be more than 70 years. 

Employment Status 

The applicant must be a salaried employee with a steady income working for a government institution, a private company, or a multinational corporation (MNC). Some lenders may also require a minimum service period, such as a 1-3 year employment record, to ensure job stability. 

Borrower Age Limit 

The applicant must be at least 21 years old at the time of loan application and usually at most 60-65 years old at the time of loan maturity. 

Income Considered 

Income considered for loan eligibility includes: 
> Monthly Salary income. 
> Incentive or Bonus from Employment.
> Proposed annual increase with proof. 
> Other regular income is in the form of rent, etc. 

Repayment history 

A good credit score, usually 750 or above, is essential as it indicates the borrower’s creditworthiness and repayment history. A high credit score can improve the chances of loan approval and may result in more favourable loan terms, such as lower home loan interest rates. 

Existing Loan Obligations 

Existing loan obligations affect the borrower’s repayment capacity and eligibility for home loans. Lower obligations mean higher disposable income. 

Collateral 

Residential property purchased through a home loan is mortgaged with a lender. The Bank checks for clear legal titles, builder credentials, and compliance with all regulatory requirements. 

Loan to Property Ratio 

Home loans can be obtained up to 90% of the property’s agreement value, subject to meeting the appropriate market value criteria. 

Nationality 

The applicant must be an Indian citizen, a Person of Indian Origin (PIO), or a Non-Resident Indian (NRI) to obtain a home loan. 

Co-applicant 

Co-applicant income can be added to increase loan eligibility. 

Documents required for home loan in Mumbai

Self employed professional

a. Three years financials complete set including: 

  • ITR acknowledgement (Saral Copy). 
  • Computation of income. 
  • Profit and Loss account and balance sheet will all annexure and schedules. 
  • Tax audit report, including Form 3CA and 3CD. 
  • Auditor’s report. 
  • Form 26 AS 

b. 12 Months bank statement Current account and saving account in PDF format (download as PDF from Internet banking). 

c. Proof of other income if other income is to be considered for enhancing loan eligibility (Rent agreement and reflection in bank statement). 

d. Sanction letter of all loans and facilities. 

e. GST registration certificate. 

f. GST 3B for the last 12 months. 

g. Copy of PAN Card. 

h. Residence Proof (one of the following): 

  • Aadhar Card  
  • Driving License 
  • Passport 
  • Voter ID card
  1. Three years complete financials set including: 
    • ITR acknowledgement (Saral Copy). 
    • Computation of Income. 
    • Form 26 AS 
     
  2. 12-month bank statement for both Current and Saving accounts in PDF format (download as PDF from Internet banking). 
  3. Proof of other income if other income is to be considered for enhancing loan eligibility (Rent agreement and reflection in bank statement). 
  4. Sanction letter of all loans and Facilities. 
  5. Copy of PAN Card. 
  6. Residence Proof (one of the following):  
    a. Aadhar Card  
    b. Driving License 
    c. Passport 
    d. Voter ID card 

Additional Documents for Partnership Firm:  

  1. Three years complete financial set, including:  

    ITR acknowledgement (Saral Copy). 

    o Computation of Income. 

    o Profit and Loss account and balance sheet with all annexure and schedules. 

    o Tax audit report, including Form 3CA and 3CD. 

    o Auditor’s report. 

    o Form 26 AS

  2. 12 Months bank statements Current account and OD or CC account in PDF format (download as PDF from internet banking). 

  3. Proof of other income if other income to be considered for enhancing loan eligibility (Rent agreement and reflection in bank statement). 

  4. Sanction letter of all existing loans and Facilities. 

  5. GST Registration certificate of the partnership firm. 

  6. GST 3B for the last 12 months of the partnership firm. 

  7. Copy of PAN Card of partnership firm. 

  8. Partnership Deed.

  1. Three years complete financial set, including: 
    • ITR acknowledgement (Saral Copy). 
    • Computation of Income. 
    • Form 26 AS. 
  2. Six months’ Salary slip/Salary certificate. 
  3. 12 months bank statement for the savings account in PDF format, downloaded from Internet banking. 
  4. Proof of other income (if applicable) to enhance loan eligibility, including:
           a. Rent agreement and corresponding entries in bank statements. 
  5. Latest sanction letter of all existing loans and facilities. 
  6. Copy of PAN Card. 
  7. Residence Proof (one of the following): 
    • Aadhar Card 
    • Driving License 
    • Passport 
    • Voter ID Card 

Additional Documentation for Private Limited Company: 

  1. Three years complete financials set, including: 
    • ITR acknowledgement (Saral Copy) 
    • Computation of Income 
    • Profit and Loss Account and Balance Sheet with all annexure and schedules 
    • Tax Audit Report, including Form 3CA and 3CD. 
    • Auditor’s Report 
    • Form 26AS 
  2. 12 months bank statements for the Current account and OD or CC account in PDF format, downloaded from internet banking. 
  3. Proof of other income (if applicable) to enhance loan eligibility, including: 
    • Rent agreement and corresponding entries in bank statements. 
  4. Sanction letters of all existing loans and facilities. 
  5. GST Registration Certificate of the private limited company. 
  6. GST 3B for the last 12 months of the private limited company. 
  7. Copy of PAN Card of the private limited company. 
  8. Memorandum and Articles of Association. 

Income to be considered:

The income considered for co-applicants will depend on their employment status or business involvement:

For Instance:

For Individual Proprietors, Partners, or Directors – Documents required are as specified for each category. 

Income Not to be considered:

Certain documents are required for identity verification purposes only and are not considered for income assessment:
a. Copy of PAN card. 
b. Residence Proof (one of below) 
   1. Aadhar Card 
   2. Driving License 
   3. Passport 
   4. Voter ID card 

Builder-Under Construction Property

  • Registered agreement for Sale between Builder and Buyer 
  • Copy of approved Plan 
  • Copy of RERA certificate 
  • Copy of Title certificate 
  • Payment Schedule 
  • NOC for Mortgage from the Builder, issued in the specified bank format 

Builder-Ready Possession property 

  • Registered agreement for sale between the Builder and Buyer. 
  • Copy of Occupation certificate. 
  • Copy of approved plan (optional). 
  • NOC for Mortgage from the Builder, issued in the specified bank format 

Resale Purchase 

  • Registered agreement for Sale between the Seller and Buyer. 
  • Registered agreement for sale between the previous sellers and buyers. (all chain agreement starting from the first purchase until the last). 
  • Copy of Occupation certificate issued by the appropriate authority. 
  • Copy of approved plan for building. 
  • Copy of Share certificate issued by society. 
  • Copy of society registration certificate. 
  • Copy of latest Maintenance Bill. 
  • Copy of latest Property tax Bill. 
  • Copy of latest electricity Bill. 
  • NOC for Mortgage from the Builder, issued in the specified bank format 

 

Salaried

Salaried applicants must provide a set of documents for verification, including: 

  • Identity proof copy of PAN card. 
  • Address proof- anyone (Aadhaar card, passport, Electricity Bill, or Voter ID card).
  • Last 3 or 6 months’ salary slips.
  • Form 16 part A & part B for the previous 2 years.
  • ITR, along with the computation of income for the last 2 years (optional with some lenders).
  • Bank statements for the previous 12 months.
  • Sanction letter of all existing loans or facilities.
  • Property-related documents.

Sanction process for home loan in Mumbai

commercial property purchase loan

Get your loan approved quickly and easily in lowest home loan interest rate

Apply Now

Frequently asked questions about home loans in Mumbai

  • A home loan is a secured loan taken by individuals for the purchase, construction or renovation of a residential property.

  • Resident Indians with a consistent income in the form of salary or business, aged 25 years and above, can avail of a home loan. a. Salaried Individuals who are working for a government, semi-government, or private sector organization. b. Self-employed professionals who are Doctors, Lawyers, Chartered Accountants, etc. c. Self-employed non-professionals who can be painters, contractors, traders, etc. Non-resident Indians with a consistent income in the form of salary, aged 25 years and above, can also avail of a home loan.

  • A fixed-rate home loan has a fixed interest rate irrespective of fluctuations in the REPO rate or PLR rate. However, no bank or NBFC offers a fixed-rate home loan throughout the loan tenure. Few banks/NBFCs provide fixed-rate home loans for a tenure of 3 or 5 years, after which it is converted to a floating rate at the prevailing interest rate at the time of conversion. Fixed-rate home loans are generally 0.50% to 1.00% higher than floating interest-rate home loans

  • A fixed-rate home loan has a fixed interest rate irrespective of fluctuations in the REPO rate or PLR rate. However, no bank or NBFC offers a fixed-rate home loan throughout the loan tenure. Few banks/NBFCs provide fixed-rate home loans for a tenure of 3 or 5 years, after which it is converted to a floating rate at the prevailing interest rate at the time of conversion. Fixed-rate home loans are generally 0.50% to 1.00% higher than floating interest-rate home loans.

  • Interest rates can vary widely between lenders and are influenced by the borrower's credit score, loan amount, tenure, and the prevailing market rates. They can range from around 6.5% to 14%, with special rates sometimes offered to women and other priority groups

  • In India, individuals can avail of income tax benefits on home loans under various sections of the Income Tax Act, of 1961. These benefits are designed to encourage home ownership and make housing more affordable. It's advisable to consult with a tax advisor or refer to the official documentation for the most current information, as tax laws and limits can change.

  • Yes, there are usually processing fees, legal fees, and stamp duty charges involved, which vary by lender. Some lenders may also charge for pre-payment or foreclosure, though this is increasingly uncommon for floating-rate loans.