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 licence 

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

• Property-related documents such as: 

1. Sale agreement

2. Allotment letter

3. Non-encumbrance certificate 

Under the Income Tax Act of 1961, you can avail of 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