Home Loan for Resale Flats

Banks provide home loans for resale properties, which allows you to promptly purchase such a flat and move in without financial stress. Here, you can explore the advantages of choosing a resale flat and understand how to acquire a home loan for it.

Some of the leading banks and NBFCs that offer loans for resale properties are:

While the eligibility criteria of home loans for resale properties vary, most lenders have the following common requirements to assess your credit profile and property value: 

• Age Requirement

Loan applicants must be between 18 and 65 years old. Age affects repayment ability and loan approval. 

• Property Age and Condition 

Lenders assess the resale property's age and condition as it serves as collateral. A poorly maintained or excessively old property increases default risk, impacting loan approval. 

• Employment Stability 

Stable employment with a higher disposable income enhances eligibility for affordable second-hand flat home loans. 

• Creditworthiness 

A strong credit profile with a good CIBIL score, responsible credit utilisation, positive repayment history, and diversified credit are factors that boost eligibility for home loans on resale properties.

To apply for a home loan on a resale property, you may need to produce the following documents to the lender: 

• A complete and accurately filled application form 

• Your passport-size photographs 

• Bank account statements for at least 6 months 

• PAN card, Voter ID, Passport, Aadhaar card, driving license 

• Proof of business income (for self-employed applicants) 

• Property-related documents such as: 

1. Sale agreement

2. Allotment letter

3. Non-encumbrance certificate 

Here are some things to take care of when buying a resale house on loan:

• Check the condition and age of the property you wish to buy to avoid damages and additional repair costs

• Verify the encumbrance certificate and other documents to check for legal clearances and ownership status of the property

• Have a professional evaluate the property and compare it with other properties in the area to ensure that you pay a fair price

• Conduct a thorough inspection of the locality’s infrastructure, safety, amenities, etc.

• Get all the property-related documents like the sales deed, property tax receipts, etc. vetted by a lawyer

• Access the account statement to check for any unpaid dues or penalties from the previous buyer

Under the Income Tax Act of 1961, you can get tax benefits on home loans for resale flats under the following sections:

• Section 80C: Under this section, you can claim an annual tax deduction of up to ₹1.5 Lakhs for the EMIs you will pay towards the repayment of the loan amount 

• Section 24: This section allows you to claim an annual tax deduction of an additional ₹2 Lakhs on the interest component of your EMIs

Follow these simple steps to apply for a home loan for a resale flat on Bajaj Markets:

• Click on the ‘CHECK OFFER’ option on this page

• Provide your personal and income-related information

• Next, select a lender from the list provided

• Enter the loan amount you wish to get and your preferred tenure

• Check all the details entered, then submit the application

After this, a representative will reach out to you for further proceedings.