Buying a home of your own is a dream for many people, and home loans are a great way to achieve your home goals.
However, many preconceived ideas are associated with a home loan application, such as that it’s a long and drawn-out process or that home loans are only for those in the high-income bracket.
The fact is that these are just myths. Your home loan process can be seamless and hassle-free as long as you research the best home loan schemes that are available in India and have all your documents ready beforehand.
Here, we’ll walk you through all the documents required for a home loan.
General Home Loan Documents
Even the best home loan in India scheme has an extensive list of documents you must present during the loan application. This is because your documents will help assess loan eligibility, repayment capacity, and income type.
Here are some general KYC documents you will need to submit along with your home loan application:
- Home loan application form
- Passport-sized photographs
- Proof of residence, like the most recent utility bills
- Proof of identities, like an Aadhar card or PAN card
- List of your personal assets and liabilities
- Last six months’ bank statement or passbook
- Signature verification by your bank
Documents For Salaried Individuals
Apart from the general documents, you must also provide documents as proof of your income and job type. If you are a salaried person, you will need the following documents:
- Salary certificate issued by the employer
- Last six months’ payslips
- Form 16 from the employer
- IT returns for the previous three years
- Last three months’ bank account statement
Documents For Self-Employed Individuals
If you are a self-employed person, you will need the following documents:
- Proof of income tax paid in advance, like IT challans
- Proof of your business address in the form of recent utility bills
- IT returns for the last three years
- Profit and loss statements for the previous three years
- Balance sheet for the previous three years
- Last six months’ bank statements
Documents Required For Loan Guarantor
Most home loan applications require a loan guarantor as added security for the lender. The loan guarantor will need to provide these documents:
- Passport-sized photographs
- Statement of personal assets and liabilities
- Proof of identity, like an Aadhar card or PAN card
- Proof of residence, like utility bills
- Signature identification from the current banker
Property Documents Required For Home Loan
When applying for a home loan, the property against which the home loan is availed will be mortgaged by the lender until the loan is paid. As such, you need to provide the documents required for Home loan to the lender to validate the purchase of the home.
The required documents are as follows:
- Sales deed or Sale agreement
- Share certificate, if the home is in a co-operative society
- Tax receipts for building and land
- Certificate of possession
- Letter of allotment from the builder or society
- Downpayment receipts
- Non-encumbrance certificate for the last 15 years
- Permission letter from the appropriate authority
- For an under-construction property, an approved floor or building plan from the builder
- NOC issued under the ULC Act, 1976
- NOC from builder or housing society
- Property value report from an impaneled valuer
- Letter from society or builder containing their bank account details for installment remittance
Home Loan Documents For A Resale Apartment
When you’re buying a pre-owned flat, you will need the following additional documents:
- Sales deed
- NOC certificate from the society
- Certificate of occupancy
- Encumbrance certificate
- Tax receipts for land and water taxes
- No Dues certificate from the society
- Certificate of possession
- Share certificate
Home Loan Documents For NRIs
If you are an NRI applicant, you will need to provide additional documents apart from the general KYC documents like identity and residence proof:
- Copy of passport containing the residence or work visa
- Employment proof, like a work permit
- Salary certificate from the employer in English with full name per passport, designation, date of joining, last salary, and passport number.
- The last six months’ salary slips, including overtime payments
- IT returns for the last three years from the country of residence
- Last six months’ bank statements from the country of residence as well as NRE/NRO bank statements
- If you’re self-employed, business documents like trade license and power of attorney
- Property cost estimate from an Indian architect
To Conclude
Now that you have a list of all the documents you need for your specific loan scheme and your profession, make sure to have all these ready before applying for a home loan. Your documents are the primary consideration in your loan application, so if you have everything ready and in order, it ensures a smooth loan process.
Make sure to have additional copies of the documents as a safety net so that you don’t have any last-minute issues in case of loss of any document.
