Every applicant who wants to avail a housing loan needs some documents while applying for a home loan. Most of the documents remain the same for all kinds of applicants but some of them may change according to the job profile, CIBIL score, or Credit score. The documents required for a home loan are easily available to everyone because these include the documents like ID Card, Residence Proof, Photographs, etc.
So, here in this guide, all the documents that are required for a home loan application are explained briefly. You can also read the other guide that explains the required documents for a Personal Loan application. But before going to the documents you need to understand few more things about home loan like home loan eligibility criteria, best Banks for a home loan, home loan interest rates, home loan tax benefits, etc.
Required Documents for Home Loan
If one wants to avail a home loan then, there are certain documents that are required to be submitted, failing which the loan can be rejected. Hence when you are requesting a loan or while loan processing takes place extra care needs to be taken to submit the required documents asked by the bank. It is important to keep in mind any misleading information or false documents that are submitted can lead to the rejection of your house loan.
Certain documents asked by all the banks are the same but a few are different. So, it is the customer’s duty to clearly find out and understand the exact documents that need to be submitted while applying for Home Loan. Here are some general documents asked by most of the banks for Home Loan applications. These documents may be different for a salaried person and for a self-employed/professionals.
1. Home Loan Documents for Salaried Person
- Duly filled application form with the recent photograph
- Age proof (like PAN Card, passport or 10thstd marks card)
- Address proof (Passport, Aadhaar Card, Driving License, election card)
- Latest degree certificate
- Salary slip of the last three month (Latest)
- Form 16 of the last two years
- Bank statement of the last 6 to 8 months (Salary account)
- Processing fee cheque in the name of the concerned bank
- Photocopy of all the documents related to the house
2. Home Loan Documents for Self-Employed / Professionals / Businessman
- Duly filled application form with the recent photograph
- Age proof (like PAN Card, passport or 10thstd marks card)
- Address proof (Passport, Aadhaar Card, Driving License, election card)
- Latest degree certificate
- Profile of the business along with proofs related to the existence of the business
- Three years income tax returns with P&L a/c and balance sheet which is certified by a Chartered Accountant. (Latest tax returns filed)
- One year bank statement of both personal and business account
- Processing fee cheque in the name of the concerned bank
- Photocopy of all the documents related to the house
As mentioned above, these are only indicative documents and may differ from bank to bank.
Must Know Facts about Housing Loan
1. Home Loan Eligibility
A definite method has been channelized by loan providers & banks to calculate the eligibility of a customer for a home loan. All people who are having a regular and steady income can qualify to get a house loan easily, hence a salaried or a businessman is also eligible to get a housing loan. Some facts that banks take into consideration before sanctioning a bank loan to an individual are described here in our in-depth article on Home Loan Eligibility.
You can also check Your Housing Loan repaying capacity in terms of EMI with our Home Loan Calculator to manage your finance efficiently.
2. Home Loan Providers
Generally, Home Loans are provided by Banks like the public sector, the private sector, multinational banks, and all NBFC’s (A Non-Banking Finance Company) and financial institutions like LIC companies, mutual fund companies, etc. Home loan providers like public sectors do a lot of paperwork in addition to have a deep look at your housing loan eligibility that is the reason why people these days are moving towards private NBFC’s for home loans for easy processing.
If you are deeply interested to get your home loan from banks only then you must select them wisely. To relieve you from this stress, we’ve compiled a list of best banks for housing loans for your reference.
Some of the most popular finance companies and NBFC’s names are mentioned below for reference;
- HDFC
- LIC Housing Finance
- PNB Housing Finance Ltd.
- Dewan Housing Finance Corp. Ltd.
- GRUH Finance Ltd.
- Can Fin Homes
- Repco Home
- India Bulls Housing Finance
- Tata Capital
- Reliance Capital
- Sundaram Finance Group
3. Home Loan Interest Rate
The current rate of Interest for the home loan is 6.70 to 9.75%, which differs from bank to bank. Home loan interest rates have been fluctuating in the past few years. For the detailed currents Interest rates you must go through out detailed guide on Rate of Interest for Housing Loan.
4. Hosing Loan Tenure
The time period (tenure) for the home loan can be 5 to 30 years depending upon your loan requirement or loan EMI. For a better understanding of your loan requirements and loan repaying capacity, you can calculate your home loan monthly repayment, using our Home Loan EMI Calculator.
Frequently Asked Questions (FAQs)
When applying for a home loan, lenders or banks typically require a set of documents to process and approve the loan. While the exact list of documents may vary among lenders, it generally includes proofs and records related to your identity, address, income, employment, and the property being financed.
In many cases, lenders may accept photocopies or scanned copies of the original documents during the application process. It’s essential to check with your specific lender regarding their document submission requirements. However, during the loan disbursal or final approval stages, lenders may ask for the original documents or certified copies for verification purposes.
Property-related documents may include the sale deed, property tax receipts, NOC (No Objection Certificate) from the builder or society, and any other documents establishing ownership and legality of the property.
Yes, if you are applying for a joint housing loan, documents for both applicants are usually required. These documents may include proofs of identity, address, income, and employment for each co-applicant. Joint loans for house often consider the combined financial strength of applicants.