Home Loans: List Of Documents Required (2023)
Most of the time, home loan applications get rejected owing to discrepancy in the documents submitted. If you have your list of documents required for home loans sorted, your loan application could get approved faster. Documents like proof of identity, address, income and property-related documents are an absolute must when applying for a home loan.
In order to make your home loan journey a lot easier, we have compiled the list of documents required for salaried, self-employed and NRI home loan applicants. Check them out!
List of Documents Required for Home Loan
Let us look at the documents required for a home loan:
1. Documents Required for Salaried Applicants
If you’re a salaried applicant, you might need these documents:
- Proof of Identity – PAN card, passport, voter’s ID, Aadhaar (any one)
- Proof of Residence- Utility bill, rental agreement, Aadhaar, voter ID (any one)
- Age Proof – Birth certificate, school certificate, voter ID card (any one)
- Income Proof – Last 3-6 months’ salary slips, Form 16
- Employment Proof – Appointment letter, Salary statement
- Property Documents (if the property has already been purchased)
- Processing fee cheque
- Duly signed passport-size photographs
2. Documents Required for Self-Employed Applicants
If you are a self-employed applicant, you might need the following documents:
- Proof of Identity – PAN card, passport, voter’s ID, Aadhaar (any one)
- Proof of Residence- Utility bill, rental agreement, Aadhaar, voter ID (any one)
- Age Proof – Birth certificate, school certificate, voter ID card (any one)
- Bank statements (last 3-6 months)
- Business registration documents (if required)
- Last 3 years’ IT Returns
- Property documents (if the property has already been purchased)
- Processing fee cheque
- Duly signed passport-size photographs
3. Other Documents Required for Home Loans
Business owners might have to provide an additional set of documents. Here’s the list:
- Business Proof – Shops & Establishment certificate, SSI registration certificate, Trade licence certificate, SEBI registration certificate, Partnership deed (for firms) / Memorandum of Association (MOA) for companies, Registration number issued by ROC, Export-import code certificate/factory registration certificate or Professional qualification certificate and degree certificate for professionals (any one)
- Address Proof – Voter card, Aadhaar card, passport, letter from a public servant or recognised public authority verifying the residence and identity of the customer, copy of sales deed of the property, latest utility bill (any one)
- Income Proof – Profit and loss account and balance sheets with the annexures certified and audited by CA , ITR, along with computation of the previous two financial years, savings account statements for the previous six months, Current account statements for the previous six months
- Property Documents – Agreement to sell (if available), receipt of payment made to the builder, complete chain documents of the property, buyer’s agreement or allotment letter (whichever document is applicable)
4. List of Home Loan Documents Required for NRIs/PIOs
Here is a list of documents that may be required for an NRI (Non-Resident Indian) home loan applicant:
- Passport: A copy of the passport is usually required to verify the applicant’s identity and current residence status.
- Employment and Income Documents: These may include salary slips, employment contract, and income tax returns.
- Bank Statements: Last 6-8 months’ bank statements
- Property Documents: These may include documents related to the property being purchased, such as the sale agreement and title deed.
- Identity and Address Proof
- Visa and Work Permit: If the applicant is working in a foreign country, a copy of the visa and work permit may be required.
- NRE/NRO Account Details: NRE (Non-Residential External) and NRO (Non-Residential Ordinary) accounts are used by NRIs to manage their financial transactions in India. The lender may request details of these accounts.
- Legal Documents: Depending on the property being purchased, the lender may require legal documents such as a power of attorney or a will.
It’s important to note that the specific documents required may vary depending on the lender and the type of property being purchased. It’s a good idea to check with the lender for a complete list of required documents.
Also Read
Calculate Your Home Loan EMI
Loan Amount
Rate of Interest (P.a)
%
Loan Tenure (Years)
Years
Monthly EMI
0
Total Interest
Total Amount
You can calculate your home loan EMI with the help of this formula:
Home loan EMI = [p x r x (1+r)^n]/[(1+r)^n-1]
Here, p = principal or loan amount, r = interest rate per month, n = loan tenure in months
However, calculating home loan EMI is an extremely time consuming process and may leave room for errors. A better alternative would be using an online home loan EMI calculator.
These online EMI calculators are extremely easy to use. All you have to do is select the loan amount, tenure and interest rate, and you will be able to check your EMI obligations within a few seconds.
Navi offers instant approval on home loans in a 100% paperless manner. The entire process is app-based with zero human intervention. Follow the steps below to apply for a Navi home loan:
- Step 1: Download the Navi App from Play Store or App Store.
- Step 2: Fill in your personal details and employment details
- Step 3: Complete your KYC verification with PAN, Aadhaar and bank statements
- Step 4: Get your loan sanctioned within minutes. You will receive a provisional loan sanction letter almost immediately.
Also Read
Final Word
It’s important to submit correct documents to your lender to avoid loan rejection. Follow the list we have mentioned to get a comprehensive idea on the list of documents required for home loans. Note that these requirements vary and it’s best that you check with your lender regarding the documents required.
For instance, with Navi, you don’t need a bag full of documents to apply for a home loan. Just download the Navi app, enter a few basic details, complete your KYC and get instant approval on home loan.
FAQs
Ans: In addition to property papers, and personal and income-related documents, individuals need to submit documents related to the existing loan. They include the following:
• Loan agreement letter
• Home loan statement
• Existing loan providers’ approvals (NOC, foreclosure letter, and No Objection Certificate)
Make sure to keep these documents ready. To enjoy a substantial reduction of interest rates of up to 5%, opt for the balance transfer facility from Navi Finserv Ltd.
Ans: Usually, if you take a home loan from a bank where you have your salary account too, you may not need to submit any documents.
Ans: Usually, an individual should earn at least Rs. 25,000 as monthly salary to avail a home loan. However, it may vary depending upon the loan provider.
Ans: For NRIs, the additional documents required for a home loan include the following:
• General power of attorney
• Valid work permit
• Copy of work visa along with passport
• Proof of overseas residence
Before you go…
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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