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How to Give Home Loan

Have you started the business of giving home loan? It is risky business if you ignore the steps for safeguard yourself. If you will care your capital, capital will care you. All the best banks follow this rules and regulations. You should also follow it. Following are the simple and effective steps to give home loan without lose.




1. Do Written Pledge Agreement

You want to give home loan. So, you are the creditor and other party who want to take the loan will be the debtor. Debtor wants to make his home, so, he need money. But, you should not give the loan without security. Pledge is written promise that if he did not return the loan of creditor within time lime, he will give right to creditor to sell the property for getting his loan amount plus its interest.


2. Three Year Income Tax Return Statement

It is very necessary because it will show, he is earning in one number and he files the income tax returns as per income tax laws. So, we will get same white money from him as the return of our loan installment.


3. Written Statement From Family Members

Are all the family members of your debtor is agree? So, a person who  is taking home loan from you must give the written statement from family members in which all family members will sign that they are agree for getting home at give rate of interest from creditor.


4. Possession of Original Registry

Possession of original registry is must. With this, your debtor does not take more loan or sell same property.


5. NOC From Committee

If your debtor did not give the bill of committee, committee will not give no objection certificate. So, your debtor must pay the bill first and give same noc to you if you are interested to give home loan to him.

6.  Sanction  Building Plan 

Sometime, a person who wants to get home loan from you, do not have the building plan which have sanctioned from authorized architect. So, you do not give home loan such person. First get the written sanction of building plan from architect and follow other steps for giving loan.

7. Identification Proof

Keep the signed copy of voter card, pan card, aadhaar card and electricity bill.


8. Legal Report

Legal report is also must. Your advocate will take some fees and make the legal report for you. In this report, he will tell that all the documents including original registry, NOC from committee, Sanction of building plan and ID proofs are original.


5. Property Evaluation Report

Just go to legal evaluator and get the property evaluation report. As per his report, if the value of property is RS. 20,00,000, give only Rs. 5,00,000 as home loan.


7. Introductions of 2 Knowing Persons


Keep the mobile no. of two knowing persons of debtor as introduction. You can talk also them regarding the goodwill of debtor.


10. Physical Verification of Source of Income of Debtor

Just go the place where your debtor is doing business. Sometime, there is no real source of debtor income. At that time, you must not give loan. Only give home loan after physical verification.After doing all basic expenses, if the person has enough income to pay the installment, you can give the home loan to him.


11. Physical Verification of Building

Which building debtor wants to make, must be verified physically. Sometime, there is building is in the area whose location is in such a condition, you need to pay extra money. So, your given loan will waste of money. 

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Accounting Education: How to Give Home Loan
How to Give Home Loan
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Accounting Education
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