Documents Required for Home Loan

 

Documents are what validate your claims made with regard to different home loan eligibility criteria. So if you claim to have a monthly income of Rs. X, it’s the backing documents that will validate that claim. Documentation is one of the key aspects based on which different banks and NBFCs in India will determine whether they will disburse loan to you or not. The documentation requirements might also vary from lender to lender. On our website, you can compare different home loan offers in India based on the no. of documents requested by the banks and NBFCs. While it’s understandable that getting all the documents together might take you some time and effort, it’s the only way that the potential lenders can learn more about you and have confidence in your eligibility-related claims. Please also keep in mind that the documentation process for home loans is slightly different and more complicated than in case of personal loans.

Following is a general list of documents asked by banks and NBFCs:

Filled-up home loan application form:

Please ensure that you fill up the form exactly as required by the bank or NBFC. This form should also have your passport size photograph affixed.

Photo ID proof:

You’re free to use any of the following as your photo identity proof: passport, driving license, voter ID card, aadhaar card or PAN Card. Please make sure that your photograph on the proof is clearly visible and can be easily identified with you. If any of these photo identity proofs also has your latest address on it, you could use it as your residence address proof as well.

Residence address proof:

You can use either of the following documents as your valid residence address proof: registered rent agreement, passport, utility bill, driving license, aadhaar card or voter ID card. Any of these documents can also double-up as a photo ID proof if it has your clearly visible and identifiable photograph on it. Please note, if you’re using utility bill copy as your residence proof it should be of up to last 3 months. And registered rent agreement is not the same as a notarized rent agreement.

Residence ownership proof (if applicable):

If you currently own a property and would like to raise a loan against it, you could use your property ownership document (sale deed, transfer of ownership, sale agreement or khata), rent agreement or maintenance bill copy as the proof of ownership.

Bank statement:

The lender would also require you to submit your last 6 months or 1 year’s bank statement showing salary paid by the employer as well as EMIs paid towards outstanding debt (if any). This is to confirm that you’re being regularly paid a salary by your employer and have a stable income to pay your home loan EMIs on time.

Property documents:

While the prospective lender might ask for residence ownership proof separately, it might also ask you to furnish a whole set of other related property documents (including the residence ownership proof). The lender will also request some of these documents if you’ve already identified the property you wish to purchase.
These documents are:

  • Transfer of ownership or khata or sale agreement or sale deed or share certificate (if it’s a cooperative society)
  • Advance payment/s receipt/s
  • Allotment letter from private builder or housing board or society
  • Approved building plan (clearly showing the floor plan of the apartment under consideration)
  • Permission letter from the concerned authority
  • NOC from housing society or builder
  • Sketch of the property location certified by the revenue authorities
  • Property tax payment receipt
  • Letter issued by the housing board or builder or society stating their bank details, for the purpose of installment remittance
  • Related order copy if it’s a case of conversion of agricultural land
  • Power of Attorney for the purpose of collecting original property documents
  • A report (in standard format) stating the property valuation done by an empaneled valuer
  • A lawyer report (in standard format)
  • If it’s a case of land purchase, a declaration from the loan borrower clearly stating the date by which he/she will construct house on the said land
  • A detailed estimate of the construction cost involved
  • NOC issued as per the 1976 ULC Act
  • A non-encumbrance certificate covering the past 12 or 30 years

Advance processing cheque:

You’d need to provide an advance processing cheque (of the amount specified by the lender) for the purpose of processing the loan application and documents. Apart from that, the lender might ask you to furnish a cancelled cheque for bank account validation too.

Investment proof/s: :

As evident, these are proofs of any investments you might have made, such as mutual funds, LIC, equity shares, property etc. These investments can be used as collaterals, giving the lender something to fall back on (in case of default) and get you a good home loan deal.

Job continuity proof:

A copy of the appointment letter and a validation letter from your present company’s HR department. You’d also need to furnish your experience certificates from the past organizations you’ve worked with, as well as the appointment and relieving letters from those organizations. In case you’ve been employed with the current organization for less than 1 year and weren’t employed anywhere before it, the lender would require only your appointment letter issued by the present company’s HR department.

Income proof:

Your last 3 months’ salary slips, last 6 months’ bank statement and last 2 years’ Form 16 will be used as your valid income proofs.

Filled-up home loan application form:

Please ensure that you fill up the form exactly as required by the bank or NBFC. This form should also have your passport size photograph affixed.

Photo ID proof:

You’re free to use any of the following as your photo identity proof: passport, driving license, voter ID card, aadhaar card or PAN Card. Please make sure that your photograph on the proof is clearly visible and can be easily identified with you. If any of these photo identity proofs also has your latest address on it, you could use it as your residence address proof as well.

Residence address proof:

You can use either of the following documents as your valid residence address proof: registered rent agreement, passport, utility bill, driving license, aadhaar card or voter ID card. Any of these documents can also double-up as a photo ID proof if it has your clearly visible and identifiable photograph on it. Please note, if you’re using utility bill copy as your residence proof it should be of up to last 3 months. And registered rent agreement is not the same as a notarized rent agreement.

Residence ownership proof (if applicable):

If you currently own a property and would like to raise a loan against it, you could use your property ownership document (sale deed, transfer of ownership, sale agreement or khata), rent agreement or maintenance bill copy as the proof of ownership.

Property documents:

While the prospective lender might ask for residence ownership proof separately, it might also ask you to furnish a whole set of other related property documents (including the residence ownership proof). The lender will also request some of these documents if you’ve already identified the property you wish to purchase.
These documents are:

  • Transfer of ownership or khata or sale agreement or sale deed or share certificate (if it’s a cooperative society)
  • Advance payment/s receipt/s
  • Allotment letter from private builder or housing board or society
  • Approved building plan (clearly showing the floor plan of the apartment under consideration)
  • Permission letter from the concerned authority
  • NOC from housing society or builder
  • Sketch of the property location certified by the revenue authorities
  • Property tax payment receipt
  • Letter issued by the housing board or builder or society stating their bank details, for the purpose of installment remittance
  • Related order copy if it’s a case of conversion of agricultural land
  • Power of Attorney for the purpose of collecting original property documents
  • A report (in standard format) stating the property valuation done by an empaneled valuer
  • A lawyer report (in standard format)
  • If it’s a case of land purchase, a declaration from the loan borrower clearly stating the date by which he/she will construct house on the said land
  • A detailed estimate of the construction cost involved
  • NOC issued as per the 1976 ULC Act
  • A non-encumbrance certificate covering the past 12 or 30 years

Advance processing cheque:

You’d need to provide an advance processing cheque (of the amount specified by the lender) for the purpose of processing the loan application and documents. Apart from that, the lender might ask you to furnish a cancelled cheque for bank account validation too.

Investment proof/s: :

As evident, these are proofs of any investments you might have made, such as mutual funds, LIC, equity shares, property etc. These investments can be used as collaterals, giving the lender something to fall back on (in case of default) and get you a good home loan deal.

Office address / ownership proof:

Some of the documents that can be submitted in this regard include utility bills, maintenance bills and/or property documents of the office.

Business existence proof:

The business existence proof involves documents like SARAL copy for the last 3 years, company registration document or document of registration under the Shop Establishment Act.

Income proof:

When it comes to self-employed professionals banks and NBFCs usually ask for last 3 years’ IT returns including all accounts-related documents like P&L statement, balance sheet etc. as income proof. They expect all accounts and income related documents to be duly attested by a Chartered Accountant.

Bank statement:

You’d be required to submit last 1 year’s bank statement, both of your personal as well as business account, clearly reflecting the transactions as recorded in your business accounts. These statement/s must also show any EMIs that you’ve been paying towards any outstanding debt.

Filled-up home loan application form:

Please ensure that you fill up the form exactly as required by the bank or NBFC. This form should also have your passport size photograph affixed.

Photo ID proof:

You’re free to use any of the following as your photo identity proof: passport, driving license, voter ID card, aadhaar card or PAN Card. Please make sure that your photograph on the proof is clearly visible and can be easily identified with you. If any of these photo identity proofs also has your latest address on it, you could use it as your residence address proof as well.

Residence address proof:

You can use either of the following documents as your valid residence address proof: registered rent agreement, passport, utility bill, driving license, aadhaar card or voter ID card. Any of these documents can also double-up as a photo ID proof if it has your clearly visible and identifiable photograph on it. Please note, if you’re using utility bill copy as your residence proof it should be of up to last 3 months. And registered rent agreement is not the same as a notarized rent agreement.

Residence ownership proof (if applicable):

If you currently own a property and would like to raise a loan against it, you could use your property ownership document (sale deed, transfer of ownership, sale agreement or khata), rent agreement or maintenance bill copy as the proof of ownership.

Bank statement / Income Proof:

The lender would also require you to submit your last 6 months or 1 year’s bank statement showing regular inflow of income from some source (including pension), as well as EMIs paid towards outstanding debt (if any). This is to ensure that you’re regularly earning something each month and have a stable income to pay your home loan EMIs on time.

Property documents:

While the prospective lender might ask for residence ownership proof separately, it might also ask you to furnish a whole set of other related property documents (including the residence ownership proof). The lender will also request some of these documents if you’ve already identified the property you wish to purchase.
These documents are:

  • Transfer of ownership or khata or sale agreement or sale deed or share certificate (if it’s a cooperative society)
  • Advance payment/s receipt/s
  • Allotment letter from private builder or housing board or society
  • Approved building plan (clearly showing the floor plan of the apartment under consideration)
  • Permission letter from the concerned authority
  • NOC from housing society or builder
  • Sketch of the property location certified by the revenue authorities
  • Property tax payment receipt
  • Letter issued by the housing board or builder or society stating their bank details, for the purpose of installment remittance
  • Related order copy if it’s a case of conversion of agricultural land
  • Power of Attorney for the purpose of collecting original property documents
  • A report (in standard format) stating the property valuation done by an empaneled valuer
  • A lawyer report (in standard format)
  • If it’s a case of land purchase, a declaration from the loan borrower clearly stating the date by which he/she will construct house on the said land
  • A detailed estimate of the construction cost involved
  • NOC issued as per the 1976 ULC Act
  • A non-encumbrance certificate covering the past 12 or 30 years

Advance processing cheque:

You’d need to provide an advance processing cheque (of the amount specified by the lender) for the purpose of processing the loan application and documents. Apart from that, the lender might ask you to furnish a cancelled cheque for bank account validation.

Investment proof/s: :

As evident, these are proofs of any investments you might have made, such as mutual funds, LIC, equity shares, property etc. These investments can be used as collaterals, giving the lender something to fall back on (in case of default) and get you a good home loan deal.

Age proof:

Your photo ID proof or your residence proof like your passport, PAN card, aadhaar card, driving license or voter ID card can double up as your age proof too.