Documents Needed to Apply for Home Loans

A Home Loan is the money obtained, typically from banks and lending institutions. You need to repay the loan amount and interest in equated monthly installments over a period of 10 to 30 years, based on the Loan type.

All banks require primary Home Loan documents when applying. However, the documentation differs between lenders depending on the Loan Type or eligibility. Following is a checklist of documents to submit during the Loan application:

KYC Documentation

• Photograph in passport size
• Identity proofs (PAN Card/Passport/Aadhaar Card/Driving License/Voters ID Card)
• Residence proof (Ration card/ utility bills/ passbook/ bank statement with address/ employment letter)
• Passport/ PAN Card/ Birth Certificate/ Bank Passbook/ Driving License/ 10th Marksheet as age proofs

1. Income Documentation

To determine Loan eligibility and repayment capacity, banks thoroughly investigate your income and economic history. You should provide the following documentation to demonstrate that you earn stably:

• Salary Slips from the previous three months
• Bank Account statement of the last six months
• Form 16 (Part A & B) or previous two years' Income Tax Returns, employee Identity Card/Appointment Letter/ Employer Certificate/ Increment Letter (as relevant)

1. Property Documentation

Before accepting the Loan application, banks evaluate the applicant's property. Banks can auction off the applicant's property to recoup bad debts in case of repayment default. The following are the property documents that banks consider:

• Certificate of completion
• Registered sale agreement
• Copy of approved building plans
• Receipts for payments made to the builder
• Receipt of registration
• Letter of sanction
• The prior owner's chain contract
• Certificate of occupancy
• Copy of the society's maintenance Bill
• Certificate of society shares
• Certificate of society registration
• Letter of possession/allotment
• Electricity bill copy
• Society's NOC (No Objection Certificate)
• Copy of Property Insurance

Applying for Home Loan is crucial for homeowners to keep their savings intact. However, since such Loans involve large sums, the application gets accepted only after a thorough examination. After the application gets approved, check the current Home Loan interest rates. They are substantially lower than the interest rate on any other Loan type as these are secured Loans.

As a result, ensure you present all the required Home Loan documents when applying. Failure to do so results in your application being rejected, and your desire to own a home remains a dream. Besides that, a declined Home Loan application can hurt your credit score, making it difficult to obtain any other Loan in the future.

Arjit Chalmela is a finance student who loves to write in his free time. He has spent considerable time researching the foreign exchange rate.