Housing loans are one of the best alternatives to avail credit in today’s time. Not only are you assured of a substantial amount, but you also manage to put your asset to productive use. Once you have decided to pledge your house, you need to proceed towards acquiring the loan from your desired bank tactfully. Firstly, you must inquire about all the documents required for a home loan.
Banks and financial houses verify your eligibility to avail a loan through these documents, which you submit along with the application. Even if you are applying for the loan online, you will have to upload a copy of those documents in the concerned sites. To get a home loan online, you need to have your documents, papers, and IDs scanned for upload.
What are the documents required for a home loan for salaried professionals?
Not every lending institution will have the same document requirements to provide a home loan. You must go through a lender’s instructions to know the exact documents you need. Here is a list of the documents and papers, which are mostly required to apply for a housing loan-
- Identity Proof in the form of Voter ID card, passport, Aadhaar card, driving license, or PAN card. It must contain a photo of the applicant.
- Aadhaar card, passport, Voter ID card, driving license, phone bills, bank statements or passbook are valid address proof documents required for a home loan
- Proof of Income of the applicant is also essential. This includes salary slip of the last two months, bank statement of the preceding six months, latest Form 16, ITR returns.
- Property documents:
- Original as well as a copy of all property-related documents, including tax receipts, deeds and more
- Agreement to sell (if applicable)
- Buyer’s agreement or Allotment Letter
- Receipt of the property payment made to the builder
- Recent passport-sized photo of the applicant
- Self-attested copy of the home loan application form duly filled in.
In case you fail to provide any of these documents to the authorities, HFCs may reject your loan application. Documentation is certainly one of the major factors which affect your home loan eligibility.
What are the documents required for a home loan for self-employed individuals?
If you are a self-employed individual and want to ensure that you match the criteria, you can use home loan eligibility calculator make sure you have all these documents available-
1.Identity proof in the form of a PAN card is mandatory for self-employed applicants.
2.Apart from the PAN card, identity proof in the form of Voter ID card, Aadhaar card, passport, or driving license will also be required.
3. Address of the applicant’s residence in the form of:
- Voter ID card
- Aadhaar card
- Rent agreement on stamp paper
- Banks statements containing address of the applicant
- Letter from a recognised public authority specifying the identity and residence of an applicant
- Credit Card statements
- Copy of owned property’s sale deed
4. Address proof of the applicant’s business:
- Establishment certificate
- Trade license certificate
- SSI Registration certificate
- Tax certificate
- Partnership deeds (in case of firms) and Memorandum of Association (for companies)
- Export-Import Code Certificate or Factory registration Certificate
- SEBI Registration Certificate
- Registration number issued by The Registrar of Companies (ROC)
5. Income proof:
- Income Tax Return (ITR) forms along with the last two years’ computation.
- Balance sheet and profit and loss statements
- Last 6 months’ account statement for the business’s current accounts
- Last 6 months’ savings account statement of the loan applicant
Property papers are also among the documents required for a home loan when it comes to self-employed applicants.
Decoding the home loan procedure in India is simple when you are well aware of the documents necessary. One can always choose to apply for a housing loan online to simplify matters further. Knowing about documentation formalities beforehand can give you an edge, improving your chances of securing the necessary credit.
Now, you can also avail faster credit with pre-approved facilities, which several reputed HFCs provide to eligible applicants at present. These offers are available on a variety of secured and unsecured financial products, including loan against property and home loans. You can have a look at the exclusive pre-approved offers by typing in your name and contact details.
Make sure to go through the home loan interest rates, eligibility criteria, documentation requirements, and so on, before proceeding with the loan application formalities. You can also negotiate terms with the lending institutions, provided you surpass the minimum criteria with ease or you have a long-standing relationship with the company.