Documents required by Home Loan applicants
Banks are highly specific about documentation thus the borrower must be ready with all the crucial documents required for the Home loan. Absence of any document results in a delay or outright rejection. Fill the Home loan application form of the bank very carefully and put your signatures on it. Inquire about the documents which are mandatory for the applicants. Some of the crucial documents required are Age proof, Identity proof ( PAN Card, Voter ID, Passport, ration card etc.), Income proof, Copy of agreement with the builder ( if purchasing a flat from the builder) and copy of allotment letter (for DDA flats, Delhi).
There are different categories, loan amount, purpose of loan, loan tenure, etc. which decide the documents to be presented by the applicant. Check which category you fall under and note the documents required accordingly.
Documents to be submitted by salaried individuals
Ø Payslips (last 3 months) mentioning all the deductions
Ø Proof of job stability (appointment / relieving letter, Form 16 for last 2 years)
Ø Bank account statement (last 6 months)
Ø Appointment-letter copy if it has not been a year in the current job, company details if the applicant works in a private firm
Ø Ration card copy of the 1st and last page/ PAN Card copy/ Telephone or Electricity bills
Ø Copy of investments made
Ø Copy of LIC insurance policies with latest premium receipts
Ø Two photographs (passport size)
Documents to be submitted by businessmen/ self-employed applicantsThe self-employed applicants are required to submit additional documents to avail a Home loan.
Ø Business profile on company’s letterhead
Ø Receipts of IT returns filed in the last 3 years
Ø Income calculation certified by a CA (chartered accountant)
Ø Profit and loss details, last 3 years balance sheet
Ø Personal and business bank account statement (last 1 year)
Ø Professional certificate copy if a professional
Ø Ration card copy of the 1st and last page/ PAN Card copy/ Telephone or Electricity bills
Ø Copy of LIC policy (if it applies)
Ø Copy of investments made.
Ø Two photographs (passport size)
Property related documents Ø Khata certificate
Ø Latest receipts for the paid taxes
Ø Encumbrance Certificate for the past 13 years
Ø Parent documents for last 13 years
Ø Receipts of previous payments
Ø To purchase an old flat/ house—the sale agreement along with the title documents in seller’s favor
Ø To purchase a newly built apartment/flat—sale agreement/ construction agreement done with the builder, total break-up of the cost mentioned on the letterhead of the builder
Documents needed for RefinanceFor getting a refinance you must submit details of your last loan, letter for the remaining loan balance along with a mention of applicable charges for foreclosure, acknowledgment letter for the deposited title deeds.
There are several banks like SBI, HDFC, ICICI, etc which provide Home loan. Below is the list of Banks in
Things to remember
Ø The granted loan amount solely depends on the borrower’s repayment capacity. Generally, the amount is never greater than 85% of the property price.
Ø Home Loan Minimum tenure: 5 years.
Ø Home Loan Maximum tenure: 20 years (depending on applicant’s retirement age).
Ø Individual Home Loan and Joint Home Loan (spouse, son/ daughter, earning father/ mother- all of them must have a stable income and should reside with the applicant).
Ø Chances of getting a Home loan can be increased by paying off the existing loans, opting for Joint Home loan, choosing a longer tenure to repay the loan etc.
Ø Submitting proofs of FD (Fixed deposits), bonds and LIC insurance policies, or a guarantor to back the applicant increases the applicant’s eligibility to apply for a Home loan.