To secure a home loan, an applicant must submit a number of documents that establish their KYC.
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.Below you will get what are the documents required to apply for a housing loan in India.
Business loans are lending agreements made between business owners and banks or private lenders. Businesses need capital, either to fund operations or simply to start themselves up and begin turning a profit. Banks and lenders are willing to give them the money in advance, so long as they pay it back on an agreed-upon schedule, with interest.
Documents Required for
Home Loan
Documents Required for
Salaried and Self Employed Applicants
1. Completed and signed home loan application
form
2. Proof of Identity: (Any one of the
below)
- PAN Card
- Passport
- Aadhaar Card
- Voter’s ID Card
- Driving License
3. Proof of Age: (Any one of the below)
- Aadhaar Card
- PAN Card
- Passport
- Birth Certificate
- 10th Class
Marksheet
- Bank Passbook
- Driving License
4. Proof of Residence: (Any one of the below)
- Bank Passbook
- Voter’s ID
- Ration Card
- Passport
- Utility bills (Telephone Bill,
Electricity Bill, Water Bill, Gas Bill)
- LIC Policy Receipt
- Letter from a recognized public
authority verifying the customer’s address
5. Proof of Income for Salaried:
- Form 16
- Certified letter from Employer
- Payslip of last 3 months
- Increment or Promotion letter
- IT returns of past 3 years
6. Proof of Income for Self Employed:
- Income Tax Returns (ITR) of
last 3 years
- Balance Sheet and Profit &
Loss Account Statement of the Company/Firm (duly attested by a C.A.)
- Business License Details (or
any other equivalent document)
- The license of Professional
Practice (For Doctors, Consultants, etc.)
- Registration Certificate of
Establishment (For Shops, Factories & Other Establishments)
- Proof of Business Address
Note: Some banks and HFCs that offer home loans to those receiving
their salaries in cash or do not have adequate income proofs. Some of those
home loan options include Unnati Home Loan from PNB Housing Finance, HDFC Reach Home Loan, Griha Suvidha Home Loan from
LIC Housing Finance, Gruh Setu Home Loan from
Piramal Capital and Housing Finance and IDFC First Bank Home Loan.
7. Property documents:
- Receipts of payments made to
the developer (in case of a new house)
- Allotment Letter / Buyer
Agreement
- Title Deeds including the chain
of previous property documents (in case of house resale)
- A copy of the sale agreement
(if already executed)
- Receipt of initial payment made
to the house seller
- Title Deeds of the plot (in
case of house construction)
- A detailed estimate of house
construction by an Architect / Civil Engineer
- A copy of the plans, approved
by the Local Authorities
- Proof of no encumbrances on the
property
8. Other Documents:
- Passport size photographs of
all the applicants / co-applicants (to be affixed on the application form
and signed across)
- Proof of own contribution
- Last 6 months’ bank statements
showing the repayment of ongoing loans (if any)
- The details of ongoing loans
(such as the outstanding amount, monthly instalments, purpose, remaining
loan tenure, etc.) in the name of an individual or business entity (if
any)
- A cheque for processing fee
favouring the home loan provider
For Salaried:
- Employment Contract /
Appointment Letter if the current employment is less than a year old
For Self Employed:
- Business Profile
- Latest Form 26 AS
- A list of Directors and
Shareholders with their individual shareholding certified by a CA / CS in
case of the business entity being a company
- Partnership deed in case of the
business entity being a partnership firm
- Memorandum and Articles of
Association of the Company
List of Home Loan
Documents Required for NRIs/PIOs Applicants
- KYC
Documents:
- Passport with VISA stamps /
PIO Card
- Proof of Address mentioning
the current overseas address
- Proof
of Income for Salaried:
- Work Permit
- Employment Contract /
Appointment Letter / Offer Letter (Duly attested by employer/ consulate /
foreign office / embassy in case it is in any other language)
- The labor card/ identity card
(documents in language other than English must be translated in English
and countersigned by the consulate)
- Last 3 months’ Salary
Certificates/Slips (in English) specifying name, date of joining,
designation and salary details for applicants working in the Middle East
- Last 6 months’ Bank Statements
showing salary credits NRE / NRO account (if any)
Credit Bureau Report (in case available in the country where you are residing) - Duly acknowledged copy of last
year ITR (except for NRIs/PIOs located in Middle East countries and
employees in the Merchant Navy)
- A copy of Continuous Discharge
Certificate (CDC) for applicants employed in the merchant navy
- Form P60/P45 and latest
employment contract (for salaried)
If any previous loan from other Banks/Lenders, then Loan A/C statement for the last 1 year - Proof
of Income for Self Employed:
- Business License / License of
Professional Practice (for Doctors, Consultants, etc.)
- Registration Certificate of
Establishment (For Shops, Factories & Other Establishments)
- Business’ proof of address
- Proof of income in case of
self-employed professionals/businessmen
- Last 3 years’ Balance Sheets
and P&L Accounts audited or certified by a C.A.
- Last 3 years’ ITR (except for
NRI/PIO located in Middle East countries)
- Last 6 months’ Bank Statement
of overseas account in the name of individual and/or company/unit
- Property
documents
- Original title deeds tracing
the title of the property
- Encumbrance Certificate
- Agreement for sale/ sale deed/
detailed cost estimate from the Architect/ Engineer for property to be purchased/
constructed/ extended/ improved
- A copy of approved drawings of
proposed construction/ purchase/ extension
- Receipts for payments made for
buying the dwelling unit
- ULC clearance/ conversion
order, etc.
- Receipts for investing the
margin money through normal banking channels from the NRE /NRO account(s)
in India
- Latest tax paid receipt
- Allotment letter from the
co-operative society/ association of apartment owners
Documents Required for
Home Loan Balance Transfer
- KYC
Documents: Aadhaar Card, PAN card
and Proof of Residence (Utility Bills, Ration Card, Passport, etc.)
- Proof
of Income: Salary slips and Form 16
(for salaried), previous years’ ITR along with necessary financials (for
salaried, self-employed and professionals) and last 6 months’ bank
statements
Additional Documents: Latest principal outstanding letter, list of documents from
existing financier
FAQ
EMI is the abbreviation for Equated Monthly Instalment. Your home loan EMI is the monthly payment that you make to repay the home loan as per the amortisation schedule.
A home loan amortisation schedule is a chart that shows the following: ⦁ Outstanding balance before payment of each EMI ⦁ The amount of EMI payable ⦁ The contribution towards the repayment of the principal ⦁ The contribution towards the interest component ⦁ The balance of loan outstanding after the payment of each EMI.
Each EMI repays a part of the principal (or the amount borrowed) and the interest due on that principal outstanding. The proportion of each EMI used for repayment of the principal and the interest changes over time. The first few EMIs contribute more towards the payment of interest and less towards repayment of principal. But the later EMIs contribute more towards the repayment of the principal. Banks and financial institutions generally calculate EMIs using a common mathematical formula. So, the EMI calculated and the amortisation schedule given by different banks and NBFCs will typically be similar for a given loan amount, tenure and interest rate. This also means that with the payment of each EMI, the pattern of reduction of the principal due generally follows a similar trend across all financial institutions. Banks and financial institutions, in general, calculate EMI through a common mathematical formula. Thus, for a given loan amount, tenure and interest rate, the EMI calculated and the amortisation schedule offered by banks and Non-Banking Financial Companies (NBFCs) will typically be similar. This means that pattern of reduction of principal amount through payment of each EMI will typically follow similar trend across all financial institutions. It is a well-known fact that the initial EMIs contribute more towards payment of interest due as compared to the principal amount. However, during the tenure of the loan, subsequent EMIs contribute more towards repayment of principal amount as compared to previous EMIs.
Since EMIs are the fixed amounts that you will need to pay the bank each month to repay your loan, calculating EMIs helps you plan your monthly budget.
Part payments towards your loan reduces the outstanding loan amount. This, in turn, reduces the amount of interest due. Your EMI remains unchanged even after you’ve made a part payment, but the proportion of the EMI utilised for the repayment of the principal and the interest changes. The amount going towards repaying the principal component in the EMI increases. Thus, the loan gets repaid faster.
The provisions under the Indian Income Tax Act, 1961*, allow Indian nationals to claim income tax relief on the payments made towards repayment of home loans. *Subject to Income Tax Act, 1961 and amendments thereto.