Owning a home is a joy equal to few others. If you live in a rural area and are looking for houses but don’t know if you can afford one, rural home loans are your saviours. Available at affordable interest rates from most banks and financial institutions, home loans in rural areas can help you finance the purchase of your dream home. These loans are mostly tailored to suit people from rural-centric professions like agriculture and animal farming, small businesses, cooperatives etc.
Read on to understand how to get home loan in rural areas, general eligibility and documentation requirements, and some tips to help you.
Before you apply for a home loan in village area, you must check what each lender demands in terms of loan eligibility. Here are some fundamental home loan eligibility criteria that rural homebuyers have to qualify before applying for the loan.
- You must be a citizen of India and must be older than 21.
- Both single and joint home loan applicants must have a stable income.
- To be eligible for most home loans in rural areas, the applicant must be an agriculturalist, an entrepreneur, or a self-employed/salaried professional.
Documents Needed for Rural Home Loans
While applying for a home loan in rural area, you will most probably have to attach a lot of documents with your application form. Some necessary documents that you must get in order before applying for a home loan in village area include the following.
- A valid photo identity proof. This can be anything from your passport to your AADHAR card.
- All the KYC documents that are requested by your lender.
- Proof of income. For agriculturalists, this proof includes the last six months’ bank statement and copy of landholding proof documents.
- For salaried individuals, the salary slips for the past six months, IT returns, bank statement, and Form 16.
- For self-employed rural home loan applicants, account statements of the business, bank statements, profit and loss records, income records, etc.
Afterchecking your home loan eligibilitycriteria and comparinghome loan interest rates of different lenders,finalise the most affordable loan offer and start collecting your documents. Always remember to use a home loan EMI calculator to assess your probable EMIs and affordability. Explore the possibility of online application if your shortlisted lender offers one since online home loan applications are far less hassling than physical ones.
For easy home loans in village area, look for lenders that provide low home loan interest rate and come with flexible repayment tenures, and provide additional support. Some Financial Institutions also have representativesthat will guide you every step of the way while you fill your application.
So, compare different lenders and read all documents carefully before getting a home loan for your dream abode.