Home Loan without Documents

Traditional home loans are notorious for demanding a long list of financial documentation. This might seem daunting for certain individuals, specifically self-employers, to submit all documents. Thus, you probably face several rejections as well and may now be on the verge of giving up. In such cases, a home loan without documents — also known as paperless loans or loans with minimal paperwork — can be fair enough to bring life to your homeownership aspiration. Hence, Urban Money provides a brief overview of this easy home loan without documents, empowering you to secure the necessary funds without having to step into a bank. We cover details such as interest rates, applicable fees, eligibility criteria, relevant features, available tax benefits, and more. Let’s scroll down to know more.

Feature & Benefits of Home Loan Without Documents

Let’s take a look at the following features and benefits you can expect from a home loan without documents:

  • No documentation
  • Easy eligibility criteria
  • Personalised loan
  • Affix co-applicants
  • Enable Negotiation
  • Fast fund disbursal

Home Loan Without Documents Interest Rates

Here are the interest rates of a home loan without documents from leading lenders in India:

Lenders Interest rate (p.a.)
Bank of Baroda 8.40% – 10.65%
Punjab National Bank 8.45% – 10.25%
State Bank of India 8.40% – 10.15%
Bank of India 8.30% – 10.75%
UCO Bank 8.45% – 10.30%
HDFC Bank Ltd. 8.75% – 09.40%
ICICI Bank 8.75%  – 11.45%
Axis Bank 8.70% – 13.30%
Federal Bank 8.80% – 10.30%
Dhanlaxmi Bank 9.35% – 10.50%

Home Loan Without Documents Eligibility Criteria

The eligibility criteria for a house loan without documents are as follows:

  • Applicants must be either salaried or self-employed individuals.
  • Applicant must have a regular source of income to cover the EMI amount.
  • Applicants must be aged somewhere between 21 and 60 years old.
  • Applicants must have a good credit score and repayment history.
  • Applicants must be an Indian citizen. 

Fees and Charges of Home Loan Without Documents

Let’s take a look at the applicable Fees and Charges of a home loan without documents:

  • Processing Fees: Charged for processing your home loan application, typically up to 3% of the loan amount, depending on your chosen lender.
  • Prepayment Charges: If you decide to repay the loan before the predetermined tenure ends, a prepayment charge may apply, usually ranging from 0.5% to 2% of the prepayment amount.
  • Penal Interest: Applied in case of delayed or missed EMIs; penal interest (or late payment charges) can typically vary between 18% to 24% per annum.
  • Other Charges: There are several types of fees, in addition to those mentioned above, associated with these types of home loans. These may include legal fees, stamp duty, conversion fees, amortisation schedule charges, and more. Hence, it is advisable to carefully review the terms and conditions of your chosen lender before finalising any decisions.

Tax Benefits of Home Loan Without Documents

Following are the available tax benefits you can enjoy concerning a home loan without documentation:

  • Section 80C: You can claim a deduction of up to Rs. 1.5 lakh per year on the principal amount you have repaid towards your home loan.
  • Section 24(b): You can claim a deduction of up to Rs. 2 lakh per year on the total interest amount you have paid towards your home loan.
Urban Money