What Documents Do You Need for a Home Loan?

What Documents Do You Need for a Home Loan?

The number of homeowners in India has been growing steadily over the past few years. A major reason for this is the availability of convenient home loans. There is plenty of flexibility provided with these loans, whether it is regarding tenure, repayment options or the type of loan. Home loans also provide attractive interest rates. You can even transfer home loans. Plus, you can apply online for right now!

All of these factors have helped these loans become extremely popular among Indians. In fact, in fiscal year 2018, housing credit grew 16%, according to credit rating agency ICRA. But one misconception that many people have is that the documentation process for these loans is extremely complex. The reality is that it is really simple. Here’s a look:

Documents Required for a Home Loan

Here is the list of documents that you need for a home loan:

Application Form

You need to provide a completely filled application form, along with passport-sized photographs of the applicant.

Identification Proof

Under this category, you can use any of the following documents:

  • Passport
  • PAN card
  • Aadhaar card
  • Voter’s ID card
  • Driving License

Proof of Age

Any of the following documents can be used:

  • PAN card
  • Aadhaar card
  • Passport
  • Bank Passbook
  • Driving license
  • Class 10 marksheet
  • Birth certificate

Residence Proof

The documents that can be used as a proof of residence for a home loan are:

  • Bank passbook
  • Ration card
  • Voter’s ID
  • Passport
  • Utility bills, such as a gas bill, electricity bill, or telephone bill.
  • Receipt of LIC policy

Property Documents

The following property documents are required:

  • NOC from the builder or society.
  • A comprehensive estimate of the cost of the house.
  • Property registration deed.
  • Notarized or registered rent deed.
  • An approved copy of the builder plan.
  • Receipt of any advanced payments made towards the property.

Additional Documents for Salaried Individuals

  • Salary slip or certificate for the last 2 months.
  • Previous year’s ITR, along with Form 16/income computation. In case a bonus is included in eligibility, you may need ITR and Form 16 for the last 2 years.
  • Bank statement that reflects your salary credit for the last 6 months.
  • Repayment track/bank statements proof of track with amortization schedule/loan sanction letter.

Additional Documents for Self-Employed Individuals

  • Income tax return along with computation of income.
  • P&L accounts and balance sheets with schedules.
  • VAT returns/sales tax return for the months not covered in the latest financial year.
  • In case of banking surrogate, you would also need the statement of your credit cards for the previous 6 months.
  • In case the income is from your contracts; you would also require a copy of Form 16A and Contract Order.
  • The last 6 months’ bank statements of the business account.
  • Repayment track/bank statements proof of track with amortization schedule/loan sanction letter.

In case you are looking for a home loan balance transfer, you might need additional documents.

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