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One of the most commonly asked questions when considering a home loan is, What are the documents required for home loan? By ensuring that all the required documents are up to date when submitting them to the lender makes the whole process much smoother and easier. The set of documents may vary depending on whether you’re an NRI, a salaried employee, or self-employed, but the basics remain the same across financial institutions.
Why Lenders Ask for Documentation
Lenders ask you for your documentation so that:
- They can confirm your identity and address.
- They can assess how fast you can repay the loan amount.
- They could verify the details of the property
- They need to ensure compliance with the rules and regulations set by the RBI and the Government.
If the documentation has any error, then the approval could take time or get entirely rejected by the financial institution. So, make sure all the paperwork is updated and accurate.
Common Documents Required for a Home Loan
Here are some generally requested documents by financial institutions for a home loan:
1. Identity Proof:
- Aadhar Card
- PAN Card
- Passport
- Voter ID
- Driving licence
2. Address Proof
- Utility bills (Water, Gas, Electricity)
- Passport
- Aadhar Card
- Ration Card
- Rent Agreement
3. Income Proof:
Salaried Individuals
- Salary Slips from the last 3-6 months
- Form 16/ITR from the last two years
- Bank Statements from the last 12 months
Self-Employed Individuals
- ITR from the last three years
- Profit and loss statement and balance sheet from this financial year
- Business licence/GST registration
- Bank statements from the last 12 months
NRIs
- Work Permit/ Visa
- Employment Contract
- Overseas bank accounts
- NRO/NRE account statements
Property Documents
- Sales agreement/buyer-builder agreement
- Title Deeds
- Approved building plans
- NOC from the housing society
- Encumbrance certificate
Guide to Prepare Your Home Loan Documents
1. Identity Proof: The first step should be for you to gather all the necessary documents that may help prove your identity.
2. Income Proof: You need to make sure that your income information is up to date, like your salary slips, bank statements, ITRs, and Form 16.
3. Property papers: You need to verify all documents for the property and make sure that there are no shortcomings.
4. Lender requirements: Most lenders are different; they provide different interest rates, and some of them may ask for specific documents. So, go through lenders’ requirements and make sure you have what’s needed.
5. Keep Originals In Hand: It’s important to keep a hold of the original copies of some essential documents as some lenders may request them to cross-check.
What if Scenarios
1. What if I don’t have an ITR?
- Some lenders may still offer you the loan, only if you provide another form of income proof, like salary slips or Form 16. But the interest rates may be higher.
2. What if the property papers are incomplete?
- The loan will be put on hold until you fill in the gaps or provide any necessary documents.
3. What if there’s an error in the documents?
- Rectify the mistakes before applying.
- Contact the financial institution for alternate options.
Before applying, make sure you keep the documents required for home loan ready. Always check the lender’s list of necessary documents before going in to avoid any delays. Choose lenders with minimal or easy documentation, like PNB Housing Finance, for a hassle-free process. If you have any doubts, you can contact the financial institution for assistance, as leading institutes offer prompt support and guidance for a smooth journey.