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Last Updated : Nov 11, 2019 12:24 PM IST | Source: Moneycontrol.com

Documents required for home loan: Home loan documents list for salaried, self-employed and NRI applicants

Home Loan Documents: Here is everything you need to know about documents required for a home loan while applying for a housing loan. Check-out the documents checklist for salaried, self-employed & NRI individuals.

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Representative image

Applying for a home loan? Here we tell you everything you need to know about documents required for home loan.

While applying for a home loan, most banks will give you a checklist of all the items you need to submit. You can also check the website of the bank and get a list of all the documents that you need to submit.

Primarily, banks require proof for five factors—your age, address, income, property and details of other loans. You need to submit copies of government IDs, bank statements, salary slips, property papers, among other things. In the following sections, we discuss in details all the documents you need to submit.

Documents Checklist for Salaried Individuals


If you are a salaried person applying for a home loan, here are the documents required for home loan:

  1. Identity proof: It is mandatory to submit a copy of your PAN Card. Apart from that you can submit a copy of any one of the following:

    1. Voter Card

    2. Aadhar Card

    3. Valid Passport

    4. Driving License

    5. Photo Credit Card

    6. Photo Identity card issued by Govt. body

    7. Letter from recognized public authority or public servant verifying the identity of the customer with photograph (not more than 30 days old)



  2. Address proof: Copy of any of the following:

    1. Voter Card

    2. Aadhar Card

    3. Valid Passport

    4. Letter from a recognized public authority or public servant verifying the identity and residence of the customer

    5. Latest Utility bill

    6. Rent agreement on stamp Paper

    7. Bank Statements reflecting address of borrowers of any commercial nationalized bank

    8. Credit Card Statement not older than 3 months

    9. Life Insurance Policy

    10. Copy of Sale Deed of the property (residence), if owned



  3. Proof of income: Copy of all of the following:

    1. Salary slip for last two months

    2. Bank statement of salaried account for last six months

    3. Latest Form 16 / ITR



  4. Property documents: Copy of all of the following:

    1. Complete chain documents of the property (as applicable)

    2. Agreement to Sell (if available)

    3. Allotment Letter or buyer’s agreement (whichever is applicable)

    4. Receipt of payment made to builder




Documents Checklist for Self Employed Individuals


If you are a salaried person applying for a home loan, here are the documents required for home loan:

  1. Identity proof: It is mandatory to submit a copy of your PAN Card. Apart from that you can submit a copy of any one of the following:

    1. Voter Card

    2. Aadhar Card

    3. Valid Passport

    4. Driving License

    5. Photo Credit Card

    6. Photo Identity card issued by Govt. body

    7. Letter from recognized public authority or public servant verifying the identity of the customer with photograph (not more than 30 days old)



  2. Address proof of residence: Copy of any of the following:

    1. Voter Card

    2. Aadhar Card

    3. Valid Passport

    4. Letter from a recognized public authority or public servant verifying the identity and residence of the customer

    5. Latest Utility bill

    6. Rent agreement on stamp Paper

    7. Bank Statements reflecting address of borrowers of any commercial nationalized bank

    8. Credit Card Statement not older than 3 months

    9. Life Insurance Policy

    10. Copy of Sale Deed of the property (residence), if owned



  3. Address proof of business: Copy of any one of the following:

    1. Shops & Establishment Certificate

    2. Trade License Certificate

    3. SSI Registration Certificate

    4. PAN Card/ Sales Tax/ VAT Registration Certificate

    5. Partnership Deed (for firms) / Memorandum of Association (MOA) for companies

    6. Export-Import Code Certificate/Factory Registration Certificate

    7. Professional qualification Certificate and Degree Certificate for Professionals

    8. SEBI Registration Certificate

    9. Registration number issued by ROC



  4. Proof of income: Copy of all of the following:

    1. ITR along with computation for last two financials years

    2. Balance Sheet and Profit & Loss account along with all annexures (duly certified and audited by CA)

    3. Account statement for current account of the business entity for last six months

    4. Savings account statement of individual for last six months



  5. Property documents: Copy of all of the following:

    1. Complete chain documents of the property (as applicable)

    2. Agreement to Sell (if available)

    3. Allotment Letter or buyer’s agreement (whichever is applicable)

    4. Receipt of payment made to builder




Documents Checklist for NRI Applicants


If you are an NRI and are applying for a home loan, here is a list of documents required for home loan:

  1. Identity proof: It is mandatory to submit copies of valid passport, valid visa and a valid rent deed or title document as foreign residence proof. Apart from that you can submit a copy of any one of the following:

    1. PAN Card

    2. Voter Card

    3. Aadhar Card

    4. Valid Passport

    5. Driving License

    6. Photo Credit Card

    7. Photo Identity card issued by Govt. body

    8. Letter from recognized public authority or public servant verifying the identity of the customer with photograph (not more than 30 days old)



  2. Address proof of residence: Copy of all of the following:

    1. Valid Passport

    2. Valid Visa

    3. Copy of Valid Rent Deed or title document as foreign residence proof



  3. Proof of income: Copy of all of the following:

    1. Bank statement required for 6 months both NRE/NRO and foreign bank a/c

    2. Last 2 month salary slips

    3. Appointment Letter / Increment Letter / Contract Letter

    4. Valid work permit



  4. Property documents: Copy of all of the following:

    1. Complete chain documents of the property (as applicable)

    2. Agreement to Sell (if available)

    3. Allotment Letter or buyer’s agreement (whichever is applicable)

    4. Receipt of payment made to builder




FAQs


What are the factors that banks take into consideration while approving a housing loan?


There are several factors that banks take into account while approving a home loan application. The prime factor is your credit history which is determined by your credit score. If you have maintained a good credit score by paying all your EMIs and credit card bills on time, your application is more likely to be approved.

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Banks also take into account your income. So if your income in the last three years has shown an increasing trend, you are an ideal candidate for a loan. Apart from that the bank will also consider your age before approving a loan. If you too young (21 years old), your repayment capacity may be lower. Same goes for people nearing retirement. The bank may decide against your application in such cases. If you are an Indian resident, you are eligible for a higher loan amount than an NRI. If you do not have many dependants to your name and your spouse has a decent income, you will be eligible for higher loans.

Will I be eligible for a home loan if my credit score is low?


If your credit score is below 750, the bank is likely to reject your loan application. You can wait a few months to improve your credit score and apply again. It is advisable to first improve your credit score and then apply for a loan. Alternatively, you can apply for a joint loan with your spouse or parents who have a higher credit score and a constant source of income.

Very rarely, some non-banking financial institutions offer loans to those with poor credit score. You can try to find such a lender. However, the interest rates charged by these lenders are steep. So be careful when you apply for a loan with a poor credit score.

Is a home loan same for a flat and a piece of land?

No. Technically speaking, loans for purchasing a flat and purchasing a piece of land are generally clubbed under the umbrella term of home loans. However, the two loans are different from each other. One if for purchasing a flat and the other is for purchasing a plot.

When you take a loan to purchase a home, you are availing the home purchase loan. This loan is eligible for tax exemptions. The interest on this loan is eligible for deductions under section 24 of the Income Tax Act and the principal is eligible for deductions under section 80 C. If you wish to purchase a plot to build your house later, you have to get a loan for land purchase. This loan is not eligible for any kind of tax deductions.
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First Published on Nov 11, 2019 12:16 pm
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