For an aspiring house owner, securing a loan is vital to fund the expenditure of purchasing a dream house. However, since a home loan is a huge amount, its approval involves rigorous inspection to prevent loan default in the future.
While getting a home loan, an applicant must provide valid and authentic documents to avoid rejection from the financier. Further, an application rejection can hamper the credit rating, making it difficult to get a loan later on.
Therefore, it is essential to know about the home loan documents that an applicant will require while opting for a loan.
Documents required for self-employed and salaried applicants
The documents needed to opt for home loans are somewhat similar across various financial institutions. An individual must furnish the loan application form correctly and provide the following documents along with it:
Proof of residence (any one)
- LIC policy receipt
- Utility bills
- Passport
- Ration card
- Voter’s ID
- Bank Passbook
- A public authority’s letter for customer address verification
Age proof (any one)
- Driving license
- Bank passbook
- Marksheet of class 10
- Birth certificate
- Passport
- PAN card
- Aadhaar card
Identity proof (any one)
- Driving license
- Voter’s ID card
- Aadhaar card
- Passport
- PAN card
Income proof
For self-employed
- Business address proof
- Registration certificate for factories, shops or other establishments
- Business license details
- A company’s P & L account statement and balance sheet (with a CA’s attestation)
- ITR for the previous three years
For salaried
- ITR for the last three years
- Promotion or increment letter
- Payslips of the previous two months
- An employer’s certified letter
- Form 16
Besides income proof, salaried applicants require submitting their passport-sized photographs and investment proofs such as shares and fixed deposits to get an online home loan promptly. Go through the vital reasons why financiers can reject a housing loan application for a better idea.
Property documents required for a home loan
Applicants need to submit the following property-related home loan documents:
- No encumbrances proof on a property
- A photocopy of plans that the local authorities have approved
- Plot’s title deeds (for house construction)
- Complete estimation of house construction from a civil engineer or an architect
- Proof of initial payment for the house
- Sale agreement’s copy (in case already executed)
- Proof of payments towards the developer (for a new house)
- Title deeds inclusive of the previous property details (for house resale)
- Buyer agreement/ allotment letter
Before applying for a home loan, an applicant must use a hassle-free home loan EMI calculator to estimate the total loan cost accurately. Further, they need to inquire into the terms and conditions of a home loan.
Eligibility requirements for a home loan
Following are the basic home loan eligibility terms in India:
- Nationality: Indian
- Age: 23 years to 70 years (approximately)
- Employment status: Work experience of 3 years (minimum) for salaried individuals and business continuity of 5 years (minimum) for self-employed individuals
- CIBIL score: 750 or above
- Minimum income: Based on the city
Now that you know about the home loan documents and the eligibility terms, apply for an instant home loan at attractive interest rates.
Procedure to apply for a home loan online
Follow the steps below to avail a home loan:
- Visit the official portal of the financier.
- In the online application form, furnish the employment, personal and financial details.
- Opt for the suitable loan amount.
- Provide property-based documentation.
- Pay a fee online to book the home loan offer with the financier.
- Upload the relevant documents for verification.
Finally, click the ‘Submit’ button for a successful loan application. Many financiers facilitate pre-approved offers, making loan processing quicker and easier. Such offers are available on home loans and loans against property. Just enter your name and phone number to check the pre-approved loan offer instantly.
Hence, accessing a home loan is easy nowadays with minimal documentation and simple eligibility terms. Furthermore, a home loan for an under-construction property doesn’t require property registration documents.
Although availing a home loan with no documents isn’t feasible, one will get enough time to provide the relevant documents before disbursal. Keep your home loan documents (such as bank statements, salary slips, employee ID and KYC) handy while applying for an online loan.
