Home Loan of up to Rs.4 Crore

Home Loan of up to Rs.4 Crore: Eligibility Criteria

Our Home Loan eligibility criteria are easy to meet and have been designed to encourage hassle-free borrowing. Have a look our Home Loan eligibility criteria for salaried and self-employed professionals.

Home Loan Eligibility Criteria for Salaried Professionals 

Here are our eligibility criteria for salaried individuals:

• The applicant can be a resident citizen of India or an NRI.
• They should be between 23 and 67 years** of age.
• The applicant should be able to show work experience of at least 3 years.

Home Loan Eligibility Criteria for Self-Employed Individuals 

Here are our eligibility criteria for self-employed professionals:

• The applicant should be an Indian resident.
• They must be between 23 and 70 years** of age.
• The applicant should be able to show at least 3 years of business vintage. 

**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.

Home Loan of up to Rs.4 Crore: Documents Required

Bajaj Housing Finance makes the Home Loan process easy with minimal document*** requirements.

Please keep the following documents ready with you to experience quick approval and disbursal:

• Mandatory documents, such as a PAN Card or Form 60, are required at the time of loan processing.
• Under the address and identity proof documents category, you can submit your Aadhaar Card, Voter's ID, or select Utility Bills.
• Under the income-related documents category, you will be required to submit the last 3 months' salary slips, the ITR of the last 2 months, the last 6 months' bank statements, and P&L statements (for self-employed applicants).
• Please also keep all property-related documents ready with you, such as Title Deed, NOC, Registration Receipt, Sale Seed, Tax Receipts, approved project plan, etc.

Please note that this list is only indicative. We may ask you for additional documents at the time of loan processing. These requirements, if any, will be communicated to you by our team.

Tax Benefits on a Home Loan of up to Rs.4 Crore

If you have availed of a Home Loan of Rs.4 Crore, you can claim tax benefits under the old tax regime of the Income Tax Act, 1961. Here's a detailed breakdown:

Section 24(b) – Deduction on Interest Paid

You can claim a deduction of up to Rs.2 Lakh per financial year on the interest paid for a self-occupied residential property. If the property is let out or deemed to be let out, there is no upper cap on the interest deduction.

Section 80C – Deduction on Principal Repayment

You can claim up to Rs.1.5 Lakh per year for principal repayment of your Home Loan. This deduction also includes payments made towards stamp duty and registration charges, but only in the year they are paid. The property should not be sold within five years of possession, or the claimed deduction will be added back to your taxable income.

Section 80EE – Additional Interest Deduction for First-Time Buyers

An additional deduction of up to Rs.50,000 is available under this section, provided:

• The loan amount does not exceed Rs.35 Lakh.
• The property value does not exceed Rs.50 Lakh.
• The loan was sanctioned between 1 April 2016 and 31 March 2017.

Individuals cannot claim this benefit if they've already claimed benefits under Section 80EEA.

Section 80EEA – Extra Interest Deduction for First-Time Homebuyers

Under Section 80EEA of the Income Tax Act, first-time homebuyers can claim an additional deduction of up to Rs.1.5 Lakh per financial year on the interest paid towards their home loan. This is over and above the Rs.2 Lakh limit available under Section 24(b), allowing eligible borrowers to maximise their overall tax savings.

To qualify, the following conditions must be met:

• The applicant must be a first-time homebuyer.
• The Home Loan amount must be less than Rs.25 Lakh.
• The stamp duty value of the property must not exceed Rs.45 Lakh.
• The loan must have been sanctioned between 1 April 2019 and 31 March 2022.
• The benefit is available to individual buyers only, not to HUFs or companies.
• The applicant should not have claimed a deduction under Section 80EE.

Things to Keep in Mind Before Applying for a Home Loan

Applying for a Home Loan requires you to be well-prepared. From assessing your repayment capacity to understanding interest rate types, here are the key factors you should keep in mind before applying:

• Check your financial stability to ensure you can manage EMIs comfortably over the loan tenure.
• Use a Home Loan Eligibility Calculator to estimate how much loan you can borrow based on your income and monthly obligations.
• Use a Home Loan EMI Calculator to plan monthly repayments.
• Factor in additional costs such as processing fees, penal charges, stamp duty, and registration.
• Maintain a good credit score to secure better terms.
• Review prepayment and foreclosure terms to avoid penalties if you plan to repay early.
• Keep necessary documents ready to speed up the loan approval process.