Here’s a Quick Checklist of All the Documents Required for Availing a Home Loan

September 13, 2022 04:32 pm | Updated 04:32 pm IST

A home loan offers several benefits to customers and helps them obtain funds to purchase their dream homes. However, prospective borrowers must know the documents required for a home loan to keep them handy while applying for this credit.

What are the Documents Required for a Home Loan in India

An applicant needs to submit a correctly filled and signed application for a home loan. After this, an applicant needs to produce the following documents required for a home loan:

1. Identity proof (any one of the following)

  • Aadhaar card
  • Voter ID card
  • PAN card
  • Passport
  • Driving licence

2. Residency proof (any one of the following)

  • Aadhaar card
  • Voter ID card
  • Bank passbook
  • Ration card
  • Passport
  • Utility bills, such as electricity bill, water bill, gas bill or telephone bill
  • Insurance policy receipt
  • Letter from a recognised resident authority attesting an applicant’s address

3. Age proof (any one of the following)

  • Aadhaar card
  • PAN card
  • Passport
  • Birth certificate
  • Marksheet of class 10
  • Bank passbook
  • Driving licence

4. Income proof for salaried applicants 

  • Form 16
  • Certified letter from the applicant’s employer
  • Last 2 months’ payslips
  • Promotion/appraisal letter
  • Previous 3 years IT returns
  • Investment proof, such as fixed deposits, shares, etc.

5. Income proof for self-employed applicants

  • Last 3 years Income Tax Returns
  • Business licence details
  • Balance sheet (attested by any Chartered Accountant)
  • Professional practice licence (for consultants, doctors, etc.)
  • Registration certificate of the establishment (for factories, shops or any other establishments)
  • Business address proof

What Are the Documents Required for PIO/NRI Applicants

An NRI (Non-Resident Indian) or PIO (Person of Indian Origin) applicant needs to produce the following documents in order to avail of a home loan in India:

1. KYC documents 

  • Passport with PIO card or Visa stamps
  • Address proof with current overseas address

2. Income proof for salaried NRI or PIO applicants

  • Work permit
  • Appointment letter or employment contract or offer letter (attested by the employer or foreign office or embassy or consulate)
  • Identity card or labour card (in case the documents are not in English, they must be translated to English and attested by the consulate)
  • Last three months’ salary slips or salary certificates in English with name, designation, salary details and the date of joining for those who work in the Middle East
  • Previous six months’ bank account statements
  • Credit report
  • Properly acknowledged copy of the previous years’ Income Tax Return
  • Continuous Discharge Certificate (for those working in merchant navy)
  • Latest employment contract and Form P60 or P45
  • Loan account statement, if any

3. Income proof for self-employed PIOs or NRIs

  • Business licence
  • Professional practice licence (for consultants, doctors, etc.)
  • Registration certificate of establishment (for factories, shops or any other establishments)
  • Business address proof
  • Income proof for self-employed businessperson/professional
  • Previous three years’ balance sheets
  • P&L accounts audited by a Chartered Accountant
  • Previous three year’s Income Tax Returns
  • Previous six months’ bank account statement in the overseas bank in name of the company/applicant/unit

What Are the Property Documents Required for a Home Loan

Besides the income proof and KYC documents, an applicant has to produce several documents related to the property he/she is going to purchase. These documents are as follows and need to be submitted along with the application form: 

  • Original sale agreement or sales deed or share certificate if the property is situated in a cooperative society
  • Certificate of possession, attested sketch of the property’s location and tax receipts for the land and building
  • Letter of allotment from housing board/ private builder/ society
  • Advance payments receipts for flat purchases
  • Non-encumbrance certificates for the last twelve or thirty years
  • Approved plan of the building
  • Original copy of No Objection Certificate issued under ULC Act of 1976
  • Relative order copy in case an agricultural land is converted
  • NOC from the housing society or builder
  • A proper estimate of the total cost of construction
  • Letter from builder/society/housing board with the bank account details for instalment remittance
  • Report from a lawyer according to the standard format
  • Property valuation report by a registered valuer

That being said, an individual needs to meet the eligibility criteria set by the lender in order to opt for a loan against property. The basic eligibility parameters for a LAP are as follows: 

  • He or she must be a resident of India
  • The individual must be between 28 to 60 years of age (salaried borrowers) or 25 to 70 years old (self-employed borrowers)
  • Working experience of at least three years in the private or public sector or any MNC (salaried borrowers)
  • Proof of steady business (self-employed borrowers)

How to Apply for a Loan Against Property in India

Willing borrowers can easily apply for a loan against property in India by following these simple steps:

Step 1: Visit the official portal of the preferred lending partner.

Step 2: Following this, they need to fill up the application form for LAP with their personal and professional details and produce the documents as asked by the lender.

Step 3: After successfully completing the above mentioned steps, submit the application form.

A representative from the lending institution will call the applicant to verify the identity and the documents submitted. After verifying the details, the lender will sanction the loan and disburse the amount as soon as possible.

Hence these are the documents required for a home loan in India. Willing borrowers should also check their home loan eligibility to ensure a smooth loan approval. Further, one should always make sure to use the loan amount prudently and evaluate their EMIs beforehand to avoid credit defaults. Borrowers can take the help of a home loan EMI calculator to know their monthly instalments even before applying for a home loan. This will help them to manage their monthly expenses, avoid the financial burden and ensure a hassle-free borrowing experience.

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