In general, most Indian residents consider buying a house as one of the most significant financial commitments. However, at times individuals might need some financial assistance to purchase their property. A home loan comes in handy during such circumstances.
In this regard, willing borrowers should be aware of the documents required for a home loan to keep them ready while applying for credit.
What are the Documents Required for Availing of a Home Loan in India?
Prospective home loan applicants will have to fill up an application form and produce the following documents:
1. Any one of the following identity proofs
- Aadhaar card
- Driving licence
- Passport
- PAN card
- Voter ID card
2. Any one of the following residential proofs
- Ration card
- Aadhaar card
- Bank passbook
- Voter ID card
- Passport
- Utility bills like water bills, electricity bills, telephone bills, or gas bill
- Receipt of the insurance policy
3. Any one of the following age proofs
- Aadhaar card
- Passport
- Class 10th mark sheet
- PAN card
- Driving licence
- Bank passbook
4. Income proof for salaried individuals
- Offer letter
- Form 16
- Last three month’s salary slips
- Appraisal or promotion letter
- Proof of investments, such as shares, fixed deposits, etc.
- Last there year’s IT returns.
5. Income proof for self-employed individuals
- Previous three years, IT returns
- Balance sheet attested adequately by a Chartered Accountant
- Details of the business licence
- The licence of professional practice for doctors and consultants
- Registration certificates for shops, factories, etc.
- Proof of business address
What are the Documents Required for an NRI/PIO applicant?
To apply for a home loan in India, a PIO (Person of Indian Origin) or an NRI (Non-Resident Indian) individual must present the following paperwork:
1. KYC documents
- Passport along with VISA stamps or PIO cards
- Present overseas address proof
2. Income proof for salaried PIO or NRI individuals
- Offer letter or employment contract, or appointment letter signed by the embassy, foreign office, or consulate
- Labour card or identity card (in English)
- Previous three month’s salary certificates or slips (in English) along with the name, salary details, designation, and the joining date (for applicants working in the Middle East)
- Last six month’s bank account statements
- Duly acknowledged copy of last year’s ITR
- Credit report
- Continuous Discharge Report for applicants working in the merchant navy
- Form P45 or P60 and previous employment contract
- Loan account statements
3. Income proof for self-employed PIO or NRI individuals
- The licence of professional practice for doctors and consultants
- Business licence
- Registration certificates for shops, factories, etc.
- Proof of business address
- Income proof for self-employed professionals or businessmen
- Balance sheets for the last three years
- P&L accounts attested by a Chartered Accountant
- Previous three years, IT returns
- Bank account statements for the last six months from the overseas ban and in the applicant’s name
Further, in order to apply for a home loan, an applicant will have to produce the following property-related documents:
-
Property tax receipts
-
Title deed
-
Allotment letter, and more
That being said, one must also know the eligibility criteria for applying for a home loan in India. The table below illustrates the same:
|
Parameters |
Salaried applicants |
Self-employed applicants |
|
Nationality |
Resident of India |
Resident of India |
|
Age |
23 to 62 years of age |
25 to 70 years of age |
|
Employment |
At least three years of corporate work experience |
At least five years of a successful business venture |
While applying for a home loan, it would also be helpful to be aware of home loan interest deduction sections. For instance, under Section 80EE of the Income Tax Act, 1961, tax deduction can be claimed by first-time home buyers on the interest amount paid on the home loan.
How to Apply For a Home Loan in India?
Willing borrowers can opt for a home loan by following these simple steps:
Step 1: Visit the official website of your preferred lending institution.
Step 2: Enter all the personal and employment details to check the home loan offer.
Step 3: Provide the required home loan amount and desired repayment tenure.
Step 4: Upload all documents as the lender asks for the verification procedure.
After successfully submitting the application form, the lending institution will run a background check. Finally, a representative from the lending institution will contact you and guide you through the remaining procedures.
To sum it up, willing borrowers will have to produce the documents required for home loans. However, a lending institution might ask for additional documents as a part of its verification policies.
