HomeFinanceDo you know the list of documents required for a home loan?

Do you know the list of documents required for a home loan?

Over the years, the process to avail a home loan has become significantly simple. Regardless, individuals still have to complete a series of formalities to access funds. For instance, they have to submit a set of documents required for a home loan verification.

By doing so, they can prove their repayment capacity and back up eligibility criteria to get the loan amount sanctioned swiftly. Accordingly, this makes it important for loan applicants to find out the required documents beforehand.

List of documents required for a housing loan in India

Here’s a complete checklist of home loan documents.

  • Duly filled home loan application form
  • Identification proof (any one):
  • Passport
  • Voter ID
  • PAN card
  • Aadhaar card
  • Driving license
  • Age proof (any one):
  • Passport
  • Birth certificate
  • PAN card
  • Aadhaar card
  • Marksheet of class 10
  • Driving license
  • Bank passbook
  • Residence proof (any one):
  • Voter ID
  • Passport
  • Ration card
  • Bank passbook
  • Receipt of LIC policy
  • Utility bills such as gas, telephone or electricity
  • A letter verifying the applicant’s address from a recognised public authority
  • Income proof

For salaried applicants

  • Employer certified letter
  • Last 2 months payslip
  • Form 16
  • Past 3 years IT returns
  • Promotion letter or increment letter

Apart from income proof, salaried applicants also need to produce investment proofs, if any. The investment proof can be any fixed deposit, shares, etc. Also, they have to submit passport size photographs to avail a housing loan in India.

For self-employed individuals

  • Last 3 years IT returns
  • Profit and loss statement as well balance sheet of the mentioned company. A CA should attest these documents.
  • For doctors, consultants or any other professionals, a license for professional practice is also required.
  • License for business (or any alternative document)
  • Business address proof
  • For shops, factories, and any other establishments, the applicant needs to produce a registration certificate.
  • Property documents required for a home loan:
  • No Objection certificate from the builder
  • Estimation of the house construction cost
  • Advance payment receipts made for the flat purchase
  • Occupancy certificate in case of ready to move in projects
  • Approved building plan copy
  • Possession certificate or the original lax tax receipt issued by the revenue authority
  • Bank account statement or payment receipt highlighting previous payments done to the seller or builder

Besides knowing the home loan documents, it is equally important for prospective buyers to know their housing loan eligibility criteria. When individuals meet loan eligibility, they are more likely to receive a high loan amount along with easy repayment terms.

Moreover, upon meeting the qualifying criteria, many leading HFCs across the country provide pre-approved loan offers that smoothens the application process. Such offers are available on financial products such as home loans and loans against property. You can check your pre-approved offer online by entering a few basic details, such as name and contact details.

Things to know when taking a home loan

Here are a few things that borrowers should know when availing a home loan:

  • Interest rate: Borrowers must compare the interest rate provided by different lenders and compute how it will impact their loan EMI. To better understand, they can use EMI calculators online and find out home loan EMI within seconds.
  • Tax benefits: Borrowers are eligible for several tax benefits upon availing a home loan. To make the most of these, they should check such benefits beforehand.
  • Loan tenor: Typically, the larger the tenor lesser the EMI amount. However, in this situation, the total interest outgo increases. Hence, choosing a loan tenor according to one’s convenience is important.

Now that you know about the documents required for home loan, you must make an informed decision. Practically assessing one’s borrowing capacity can save an individual from any financial turmoil while servicing a loan. Therefore, before taking a home loan, learn all about the lender and take your time to choose the right one.



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