Buying a house is not a child’s play; right from selecting the house of your choice to Zeroing on to the Home Loan, everything is a Herculean Task and would squeeze out a lot of your time if you miss out anything. However, being aware of the necessary documents and their nuances would ease off unnecessary pressure of your shoulders.
Having complete and valid documents ensures timely paperwork and hassle-free disbursal of Home Loan. Whether you are buying a home from a builder or seeking out Home finance on own, you would require certain documents ready to be eligible for a Home Loan.
Let’s take a quick sneak peek on the list of documents required to Get a Home Loan in India:
|Lender||Benchmark Type||Interest rate (Min)||Interest rate (Max)|
|PNB Housing||PLR|| |
|Bank of Baroda||RLLR|| |
|Bank of India||RLLR|| |
|Union Bank of India||RLLR|| |
|Axis Bank||RLLR|| |
|Bajaj Finserv||PLR|| |
|Kotak Mahindra Bank||RLLR|| |
To be eligible for a Home Loan, you basically require identity proof, age proof, address proof, and income proof.
Identity verification is a necessary step to have the loan disturbed from the bank. Any document that proves your identity such as your name, Date of Birth, age, sex, caste, creed, etc is accepted as the document of identity proof. Documents that are considered as a legal Identity Proof document include Driving License, Voter’s ID, Passport, Pan Card, Aadhaar Card, and NREGA Card.
Before approving a loan, the bank also requires you to verify that you do have a permanent address where you live, and you can get your letters and bills on that particular address. Having a verified address ensures a valid address of correspondence to the bank. The documents that are accepted as Address Proof include Driving License, Voter’s ID, Passport, Ration Card, Utility Bills or a letter from a recognized government authority verifying the resident address of the borrower.
Age is another eligibility criterion for Home Loan. You need to submit your age proof which will tell that you are eligible to apply for a loan or not. The documents that can be considered as legitimate age proof are Driving License, Passport, Pan Card, Birth Certificate, and 10th Standard Mark Sheet.
This is the most important document, which is going to decide whether the person who is applying for the loan will be able to pay it or not. The lender assesses income proof so that they can make sure that they are putting the amount in the right hands. The income proof varies for salaried from that of self-employed individuals.
The income proof for self-employed individuals or those running their own business include:
1. A brief introduction to what kind of business you are involved in.
2. You need to submit your recent Balance Sheet, then the statements which do have all the information about Profit and Loss of the business.
3. A copy of Income Tax Return for the last 3 years certified by CA.
4. If you have made any advance tax payments, then the receipt of that will also be required.
5. You need to show the registration certificate to prove that your business is registered under the act of the Shops and Establishments Act.
6. If you are Doctor, then you need to show the certificate of practice as a professional.
7. If you have made any investments, then you need to show the proofs of investments such as your FDs, or shares.
The papers which are required by the salaried individuals are as shared below:
If recently you have got any increment or promotion, submit documents regarding that.
Next, attach the appointment letter of the company you are working for.
Also submit pay slip of the last 3 months, combined with Salary Account Bank Statement.
Papers related to the Income Tax Returns for the last three years.
If you have made any kind of investments such as FD certificates, shares and so on; submit papers for the same.
Other documents that support the financial background of the borrower.
The Sale Deed of the house that you are purchasing is another important document which you will require if you are planning to buy a property. It is evidence that you are purchasing a property. It signifies the transfer of the ownership of the property to you. And if you plan to or need to sell the same property after a few years, then this will be the most important document for you, or you will not be able to prove that this home belongs to you and you are not trying to sell any fraud property. These papers are needed to be registered at the sub registrar’s office of property jurisdiction and need to be done within a maximum period of four months from the date the property is sold. Without this, you will not be considered a legal owner of the property whether you want to sell it or just own it to live.
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