Sooner or later everyone needs a place of their own, and the best way to achieve that goal for a person from a mid-income household in India is to get a home loan. Government of India has schemes in place to assist house buying/building for the citizens. Nowadays, home loans are easy to come by. But only if all your documents in order.
To secure a home loan, an applicant must submit a number of documents that establish their KYC, the antecedents of the property they wish to purchase, their income background etc. depending on which category of customers (salaried/professional/businessman/NRI) they belong to.
The documents required vary from bank to bank. Below are some lists of document which are most commonly required to apply for a home loan in India.
- List of papers / documents applicable to all applicants:
- Completed Home loan application
- 3 passport size photographs (including those affixed in loan application)
- Proof of identification: Electoral ID Card / Passport / Driving License / PAN card.
- Proof of residence: Electoral ID Card / Passport / Electricity Bill / Telephone Bill.
- Proof business address, in case of non- salaried borrowers
- Statement of bank account for the last six months
- Signature identification from present bankers
- Personal Assets and Liabilities Statements in Bank’s standard format.
- Brief write up of securities charged in respect of other loans availed from our Bank/other
- Banks/ Auto & Housing Loan Companies /other sources.
Documents For Guarantor (Wherever Applicable)
- Liabilities Statement and Personal Assets.
- 2 photographs passport sized.
- Pan Card Copy.
- Residence proof.
- Three Month Salary Slip.
- Latest Two Year Form-16/ITR Copy.
- Proof of business address(if businessman).
- Aadhar Card Copy.
Additional documents required for salaried persons:
- Original salary certificate for last month.
- TDS certificate- Form 16 or copy of I.T. Returns for the last two financial years, duly
- acknowledged by I.T. Deptt.*
- For professional /self- employed / businessmen
- Three years I.T.Returns duly acknowledged by I.T Deptt./ I.T. Assessment Orders for
- computation of income*
- Copies of challans in respect of advance payment of income tax*
List of Property Documents:
- a) Sale Deed, Agreement of Sale. Original Share Certificate(s) issued by the society.
b) Land and Building tax paid receipts, possession certificate, and location sketch of
Property certified by revenue authorities.
c) Letter of allotment from Housing Board /Society/ Private builder.
d) Original receipts regarding advance payments towards purchase of flat .
e) Non encumbrance certificate for the last 12/30 years.
f) Original of land tax paid receipt and possession certificate issued by the revenue
g) Copy of permission from Appropriate Authority and approved building plan (and also
key plan / floor plan incase of purchase of flats)
h) Original NOC under ULC Act 1976
i) Copy of the relative order in case of conversion of agricultural land.
j) Original No objection certificate from Housing Society / Builder
k) Detailed estimate of cost of construction of House
l) Letter from the Builder / Society /Housing Board intimating their account number and
name of their bankers, for remittance of installments.
a) In case of loan granted for purchase of plot of land, declaration by the borrower agreeing to
construct the house within the stipulated period.
b) Lawyer’s report as per the standard format (Bank’s of Instructions)
c) Valuation report from empanelled valuer as per standard format.
- In event of demise of the loan borrower:
- Letter requesting handing over of Property documents from Legal Heir/Nominee(s).
- Letter relinquishing the right to Legal Heirs/Nominees for Property documents handover.
List of Home Loan Documents Required for Non Resident Indians(NRIs)
- Document establishing KYC.
- Salary Certificate from employer stating in English the name (as per passport), designation, passport number, date of joining, latest salary.
- Last 6 months’ salary slips reflecting variable components like incentives, overtime, etc.
- Latest IT Returns (for applicants filing IT returns in the country).
- For Self Employed NRIs, business documents like Trade License, Sponsor Agreement, Power of Attorney, etc.
- Copy of Passport showing the page of residence visa.
- Proof of employment by the Government of the residing country like work permit, labour contract, etc.
- Documents related to the Property with cost estimates from an Indian Architect or Engineer.
- For Salaried NRIs, income documents attested by embassy official required if there’s no documented evidence for salary credit or fund remittance to India is available.
- Bank statements copies from overseas of the past 6 months.
- Last 6 months’ NRO/NRE bank statement.
- If applicant is unavailable in the country at the time of signing documents, Power of Attorney needs to be produced by the person acting on their behalf.
List of Documents Needed for KYC Compliance
Some of the usual documents admitted as KYC are mentioned below:
Photo Id Proof (Any One Required):
- PAN Card
- Driving License
- Voters ID Card
- Residence Proof (Any One Required):
- Electricity Bill
- Ration Card
- Telephone Bill
- Employment Letter
- Passbook or Bank Statement with address
Proof of Age:
- PAN card
- Birth certificate
- Driving license
- Bank passbook
- Besides the ones mentioned above, the banks have the right to ask for any document they deem necessary to the loan sanctioning and verification process.