The Ultimate Guide to Home Loan Eligibility and Documentation in Kerala

Owning a home is a dream cherished by many in Kerala, and with attractive home loan options available from banks and NBFCs, it’s more accessible than ever. This in-depth guide covers everything you need to know about home loan eligibility and documentation in Kerala, from who can apply, what documents you’ll need and common FAQs.

Home Loan Eligibility Criteria in Kerala

Each lender has some variations, but the core eligibility factors remain:

1. Age Limit

• Minimum age: 21 years for both salaried and self-employed.

• Maximum age at loan maturity: 65–70 years (depends on lender).

2. Nationality

• Eligible: Indian Citizens, NRIs, or Persons of Indian Origin (PIOs).

3. Income Requirements

• Salaried: Minimum annual income of ₹1.8 lakh.

• Self-employed: Minimum annual income of ₹2–3 lakh.

• Steady income: Salaried applicants need at least 2 years' work experience; self-employed need 3 years in business.

4. Credit Score

• Generally, a CIBIL score of 750+ is preferred. Lower scores may impact eligibility or interest rates.

5. Employment Status

• Regular employment (preferably in a reputable firm or government sector) or stable business history.

6. Property Eligibility

• The property must be legally clear, have all permits, and be within approved project listings when buying from builders.

7. Loan-to-Value (LTV) Ratio

• For properties up to ₹30 lakh: Up to 90% of the value.

• ₹30–75 lakh: Up to 80%.

• Above ₹75 lakh: Up to 75%.

Comprehensive Document Checklist

Proper documentation is key for loan approval. Make sure you have:

1. Personal Documents

• Filled home loan application form.

• Passport-size photographs of applicant/co-applicants.

• Identity & Address Proof: Aadhaar, Passport, PAN, Voter ID, Driving Licence, Utility bills, Ration card.

2. Income Proof

• Salaried: Last 3 months’ salary slips, Form 16, 2 years IT returns, appointment letter, latest 6 months' bank statements reflecting salary credits.

• Self-employed: Last 2–3 years IT returns, balance sheets, profit & loss account, business registration proof, and 12 months' bank statements.

• For NRIs/PIOs: Valid passport, visa/work permit, salary slips, NRE account statements.

3. Property Documents

• Sale deed/agreement.

• Title deed and chain of previous documents.

• Allotment letter/buyer agreement for new houses.

• Receipt for payments made to builder/seller.

• Approved building/construction plan by local authorities.

• No Objection Certificate (NOC) from Builder/Housing Society.

• Non-encumbrance certificate (12/30 years).

• Property tax receipts.

• Valuation report from an authorized valuer.

4. Other Essentials

• Cheque for processing fees.

• Proof of own contribution for down payment (usually 20–25%).

• Additional documents, if requested by lender: employer’s certificate, proof of business address (self-employed), and signed undertaking for installment deductions (salaried).

The Home Loan Application Process in Kerala

1. Assess Your Eligibility: Use online home loan calculators for quick eligibility checks.

2. Gather Required Documents: Prepare the complete set for smooth processing.

3. Select Lender and Loan Scheme: Compare interest rates, LTV ratios, and repayment terms.

4. Property Selection and Valuation: Ensure all title and municipal documents are clear and up-to-date.

5. Submit Application and Documents: Apply online or offline; most banks facilitate both.

6. Verification and Processing: Bank reviews your application, verifies documents, performs CIBIL check, and evaluates the property.

7. Sanction Letter Issuance: If all checks are cleared, you get a sanction letter specifying details of your loan.

8. Disbursement: Loan amount is disbursed post legal and technical verification.

Frequently Asked Questions

1. Who can apply for a home loan in Kerala?

Any Indian citizen, NRI, or PIO aged between 21–65 years with regular income and a decent credit score (750+) can apply for a home loan.

2. What is the minimum income required?

For most banks, it is ₹1.8 lakh/year for salaried, and ₹2–3 lakh/year for self-employed.

3. How much loan can I get on my salary?

Generally, banks offer loans up to 60–70 times your net monthly income, subject to LTV ceilings.

4. What is the maximum tenure?

Up to 30 years, but not exceeding age 65/70 at loan maturity.

5. Can NRIs apply for home loans in Kerala?

Yes. NRIs/PIOs who meet the income and documentation criteria can apply; special documents like NRE account statements are needed.

6. What property documents are needed?

Sale deed/agreement, title documents, approved plans, NOC, payment receipts, and valuation report.

7. What is the typical down payment?

Banks finance 75–90% of the property value; you pay the rest as own contribution/down payment.

8. How long does loan processing take?

With complete documentation, processing can take 3–21 working days.

9. What are popular types of home loans?

• Fixed-rate loans

• Floating-rate loans

• Loans under Government schemes like PMAY.

10. What if my home loan is rejected?

Resolve the issue based on rejection reason (e.g., low credit score, document gap), and reapply or try another lender.

Bringing Your Home-Buying Journey Full Circle

Securing a home loan in Kerala is a vital part of the property-buying process, but the journey truly begins with finding the right home. Once you understand the eligibility criteria and have your documents ready, you’ll be perfectly poised to start exploring properties that match your budget and preferences.

That’s where Thithithara brings everything together. After equipping yourself with loan knowledge, use Thithithara’s vast property listings to discover verified homes, apartments, and plots all across Kerala.