In India, more than half of the population starts earning in their early 20’s. So their dream to buy a house starts building up soon. But getting a home loan in your 20’s is not as easy and exciting as it sounds. Know your hurdles and how to tackle them to get your dream house before you turn 30!
- Age Criteria:
The basic age criterion to avail a home loan is 25 years. If you are in your early 20’s and want a home loan, banks and NBFCs may not be that excited to process your application. Here you can have your parent or a relative (who is above 25 years old) as co-applicant. Or if you are working for more than a year then you can produce proof of your one year straight employment and get the loan!
- Regular and Steady Source of Income:
When a person in 20’s applying for a home loan, many times they have just completed their education and started their employment. Even if they are self employed or business person, it becomes difficult to get a home loan. In case of salaried employees banks and NBFCs require Salary certificate from the employer (original) and copy of ITR or Form 16 for last 2 years. In case of self employed or businessmen, banks and NBFCs require copy of challans proving that Advance Income Tax has been paid, copy of ITR/Assessment Orders of 3 years, business proof (registration of business) and bank statements of last one year.
In such case you can wait for the said time and meanwhile save money for the down payment for your house. Know how to save money for the down payment of your house by clicking here.
- CIBIL Score:
For those who are in their 20’s, it’s difficult for them to have a strong CIBIL score. To build a strong CIBIL score, you need good credit history, savings history, earlier loan repayment history, credit card statements etc. Expecting these things from someone as young as in his or her 20’s is too much.
Click here to know all about CIBIL score and start building it from NOW!
- Documents Required:
To avail a home loan, you need very specific documents. As there are quite a few documents, you should start planning and get them one by one. These include Aadhar card, PAN card, Statements of investments (if any), copy of plan approved for the proposed construction/extension (in case of applying for home loan for extension), cost estimation or valuation report from the bank’s (or finance company’s) panel CA, allotment letter of housing board/NOC of the society/builder etc., valuation/cost estimation report from evaluator approved by the NBFC or Bank, property papers with OC and CC etc.
So start planning for your home loan now