Documents Required for Home Loan

CHECKLIST

Application Form – Duly filled and signed form along with 2 passport size photographs.
Identity Proof – Copy of Voter’s ID/ Passport/ Driving License/ PAN Card/ Aadhar Card.
Residence Address Proof – Copy of Telephone Bill/ Electricity Bill/ Gas Bill/ Rent Agreement/ Property Tax Receipt/ Passport/ Voter’s ID/ Ration Card/ Aadhar Card.
Age Proof – Copy of Passport/ Driving License/ PAN Card/ 10^th
Loan Processing Fee Cheque – Loan Processing Fees is generally 0.5% – 1% of loan amount.

Income Tax Returns for last 2 years along with acknowledgement.
Balance Sheet and P&L Account certified/ audited by a CA for last 3 years.
Primary Bank account statements for last 6 months.
Education Qualification certificate and proof of Business existence.
For partnership firm, additionally Partnership Deed to be submitted.
Additional requirement for Private Limited Company – (1) Shareholding Pattern or Memorandum and Articles of Association duly attested by CA, (2) List of Directors.

Copy of valid Indian passport showing Visa stamps or copy of foreign passport/equivalent documents.
Copy of valid Visa/work permit/equivalent documents supporting the NRI status of the applicant accountholder.
Latest contract copy evidencing salary/salary certificate/wage slips.
Overseas bank account statements for last 3 months showing salary credits.
3 months NRE/NRO account statements.
Local bureau report of the country where customer is based.

Trade license or equivalent document.
6 months overseas bank account statements and NRE/NRO account statements.
Computation of income, P&L account and balance sheet for last 3 years certified by a CA/CPA or any other relevant authority as the case may be (or equivalent company accounts).
Passport copy with valid Visa stamp.
Brief profile of the applicant and business in the specified format.
Local bureau report of the country where customer is based.

Note:

Banks and NBFCs require all documents to be self-attested.
The above checklist is an indicative list which will help you in preparing your documents for home loan. Banks may have less or more requirements to be fulfilled.

Before you start arranging your documents required for home loan, have a look at these useful tips:

Increase in Income – If you are a Self-Employed person and if your income has increased substantially in the past, you should try to convince the Bank that this is a permanent increase and not an aberration. Once, the Bank is convinced, it can approve a loan based on your latest income rather than considering much lower average income. Similarly, for a Salaried Individual, if the salary has increased recently, it can be considered for loan approval.
Your Bank Statements are scrutinized for:

Average Bank Balance – A healthy account balance indicates the saving habit of an individual.
Level of Activity – In case of self-employed individuals, banks look for healthy business activities.
Cheque Returns & Cheque Bounces – If a cheque issued by you is returned or gets bounced, default charges will be reflected in your account statement. Banks have specific norms as to how many such returns allowed in a period of 1 year.
Periodic Payments – If you have an existing loans/ liabilities, it will be reflected in your account statement in the form of periodic payments. You should disclose complete details about your liabilities to the lender.
Investments – If you are investing regularly in various instruments, it gives an indication to the bank about your ability to pay the down payment and about your general saving habit.

Now that you know what Banks look for, you may want to clean up your account a little bit before you apply for home loan.

CIBIL Score – Not many people know that all Banks and Financial Institutions share their credit records with credit bureau CIBIL. If you did not pay a small credit card bill 3 years ago, it can come to haunt you at the time when your home loan application is being scrutinized. If you have never defaulted on any of your loan or credit card, you should not worry. But if you have doubt, you should check your credit report from CIBIL and pay any dues before you apply for home loan.
Employment Details – If your company is not well-known, then banks may ask a brief company profile mentioning type of business, major customers, competitors, number of offices, number of employees, annual turnover & profits etc. You can either keep a company brochure handy or mention the company website if it carries all details.

In order to avoid rejection, make sure all your documents and accounts are in order before you apply for home loan.

Home Loan Eligibility Calculator – To check your home loan eligibility (maximum loan that you are eligible based on your salary and other liabilities) and home affordability (maximum value of house that you can buy).
EMI Calculator – Calculate EMI for any loan amount, interest rate and tenure. Also check out Smart Tricks to save your EMI.

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