The Complete List Of Documents Required For Home Loan

It can be a tedious task to collate the documents required for a home loan application. Whether you are looking to purchase a new property, construct or renovate your home, you may need to approach your bank and apply for a home loan. To get your home loan application successfully approved, the documentation needs to be error-free. It is a bitter truth that with home loans comes a great deal of documentation. After the painstaking process of finding your dream home, you want to avoid wasting time on documentation. Now, the majority of documents asked by all banks are more or less the same. That being said, certain banks may require additional documents depending on your application.

We aim that this post will help you understand the different documents required for a home loan so that you spend minimal time on your loan application.

Refer to the below table for the checklist of documents required for home loan application.

1. Home loan application form

When you approach your bank for a home loan, they will give you an application form to fill out. In this primary document, you need to enter your personal details, employment and salary details, and other information. The home loan application is a crucial document, so make sure you fill it out accurately.

2. Passport size photograph

Along with the above home loan application form, you will need to affix your recent passport size photograph as per the bank's requirement.

3. Proof of Identification

You can submit any one of the below ID cards as proof of identification:-

• Passport
• Aadhaar card
• Driver’s license
• Voter’s ID
• Government-issued ID cards

4. Proof of age

You can submit any one of the below documents as proof of age:-

• Aadhaar Card
• PAN Card
• Passport
• Birth Certificate
• 10th Class Mark sheet
• Bank Passbook
• Driving License

5. Proof of residence

You can submit any one of the below documents as proof of residence:-

• Bank Passbook
• Voter’s ID
• Ration Card
• Passport
• Utility bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill)
• Aadhar card
• Property tax receipt

6. Income documents:

This is one of the major documents required for a home loan application. The documents required would depend on whether you are a salaried employee or self-employed.

• If you are a salaried employee-
• 3 months salary slips
• 6 months salary slips OR in case of variable pay, proof of bonus for past 2 years
• Recent bank statements(6 months) showing credit of salary
• Form 16 from your employer for past 2 years
• If you are a salaried NRI -
• 3 months salary slips
• Appointment letter OR contract letter
• Indian NRE/NRO a/c statement(6 months)
• International salary a/c statement(6 months)
• Overseas credit report
• Copy of valid visa/OCI card
• Passport copy
• Details of POA
• If you are self-employed-
• Income Tax Return(2 years), calculation of Income, statement of profit/loss, balance sheet with seal and sign of a CA
• Tax Audit Report, only If your gross turnover is greater than Rs 1 Crore or gross receipts is greater than 25 Lakhs
• Bank statements of personal and business accounts(6 months)
• Proof of business continuity

7. Property documents:

• Permission for construction (if applicable)
• Registered Agreement for Sale OR Allotment Letter/Stamped Agreement for Sale
• Occupancy Certificate (in case of ready to move property)
• Share Certificate (only for Maharashtra), Maintenance Bill, Electricity Bill, Property Tax Receipt
• Approved Plan copy (Xerox Blueprint) & Registered Development Agreement of the builder, Conveyance Deed (For New Property)
• Payment Receipts or bank A/C statement showing all the payments made to Builder/Seller

8. Other important documents and checks:

There are a few other important documents required for a home loan, they are as below:-

• Filled application form, which is duly signed, also attach the latest passport-size photo of the applicant
• For credit-linked subsidy scheme (PMAY), Aadhaar card is compulsory
• For all applicants, PAN card is compulsory
• Payment of processing Fee and CERSAI cheques
• All documents have to be self-attested by the applicant

Conclusion

Recently, the Government has introduced many measures intending to assist homebuyers. This is positive news for all home loan applicants in India. Because of the favourable policies adopted by banks, we are witnessing a spur in home loan applications in India. It can be a daunting task to gather all the documents required for a home loan application, especially for first-time homebuyers. But, the process has been significantly streamlined, thanks to the launch of new-age banking practices. Presently, it is a great time to apply for home loans in India!.

We sincerely hope that our post on the list of documents required for a home loan will help you with your home loan application with the bank. For more such informational content, keep visiting OKCredit. You can also check out our app OKCredit, which can help you manage your business transactions.

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FAQs

Q. Can I get a home loan without property documents?

Ans: Yes, only if it is for an under-construction property. But post possession, the property needs to be registered, and a certificate of completion must be obtained.

Q. What are the different types of home loans?

Ans: Below is an illustrative list of the different types of home loans available:-

• Home Purchase loan
• Home Improvement loan
• Home Construction loan
• Home Extension loan
• Land Purchase loan
• NRI Home loans

Q. What is the average tenure of a home loan?

Ans: A home loan tenure can vary from 3-30 years, depending on the amount involved and the terms and conditions of the bank.

Q. Can an NRI apply for a home loan?

Ans: Yes, NRIs can apply for home loans in India. You should contact the NRI division of your bank for specific details. That being said, the repayment of the loan must be made only through Indian banking channels.