Buying a house is a big dream for most Indians; we tend to add it on the top of our wish lists. After spending most of the years in the metro city flats, people tend to appreciate the beauty of their hometown and wish to shift in the calming hometown after their retirement.  

But getting a loan sanction, especially home loan after you retire can be a major challenge. Thankfully home loans are secured loans and can be applied for against a collateral like another house, jewelry etc. 

Usually, the loan amount is availed based on the current monthly income of the applicant. But if a retired individual is applying for a home loan, a bank like to take repayment guarantee from other members of the retired applicant’s family along with the collateral that is mandatory to put against the loan, for the security of financiers. Today multiple banks even provide a home loan to pensioners, helping them to fulfill all their wishes.

Eligibility criteria to apply for Home Loan after Retirement

·         The retired applicant shouldn’t be over 76 years of age.

·         He/she should have a regular source of income, in the form of a pension. This could include government pensions or private pension plans which are provided by private banks.

·         The pension of the applicant spouse is also considered while the bank is verifying the repayment capacity of the retired applicant.

Note: It is usually a bit harder to get a loan after the retirement, so we recommend you to apply for this home loan in advance to avoid any such complication. Plus this way you will be able to shift your new home, as soon as you retire. So, plan ahead and spare the old you from getting involved in the loan procedure.

How to apply for Home Loan?

Gather Your Documents

Do your research, contact every bank in your area and discuss their home loan schemes and procedure and select the best option according to your preference. Once you have decided your preferred financial institute, start gathering you these document in a file and apply for the loan as soon as possible.

List of documents required to apply for Home Loan

•    A Completed loan application

•    3 Passport size photographs

•    Identify Proof:  (Voters ID card/ Driving license/ IT PAN card/ Passport)

•    Residence Proof: (photo copies of recent Telephone Bills/ Property tax receipt/ Passport Electricity Bill/ Voters ID card)

•    Business Proof: Address Details of the self-owned company or shop

•    Bank Account Statement/ Photocopy of Past Six Month Pass Book details

•    Signature identification proof from present bankers

•    A list of Personal Assets and Liabilities

Tenure and EMI

Find a balance between your tenure and EMI, as you don’t want to apply for higher EMI’s as they can really affect your monthly budget, but longer tenures will just take longer to complete, and might also demand you pay higher interest rate. The sooner you decide the sooner the bank will be able to work on your application.

Collateral of a Good Value

Putting an asset or property of a significant amount can also boost your loan procedure as the financier feels secure about any uncertainties.

Loan Eligibility

You can check your loan capacity by using a Home Loan Calculator online. Usually, most banks allow applicants with a monthly income of INR 18,000 to apply for as much as 20x the total loan amount.

Applicants can enhance their loan eligibility, by showcasing their working members in the family, like their parents or their spouses. In order to this, all you have to do is make them your co-applicant. This will allow you to lend extra money, as you incomes with will be seen collectively.

Pre-Approved Home Loans

You must have received multiple emails concerning this subject. Pre-approved loans are a certain sum of loan that the bank is willing to give you as an offer, which is valid till for limited period of time. Now bank offers such facilities after checking the repayment capacity and all the eligibility criteria of the customers, so it’s rare that they end up rejecting your application. Usually, these loans are approved and disbursed at a much faster rate compared to the initial procedure so I recommend you to use this offer to your benefit. 


So, go ahead apply for a loan today and start looking for your dream home.


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