Most applicants focus on the loan amount they are eligible for and the interest payable on that loan instead of the requirements for loan approval. However, financial institutions often reject housing loan applications due to the insufficiency of documents.
It is essential for them to focus on the documentation procedure as well since it significantly impacts a loan approval. An applicant needs to provide income proofs, KYC details and documents required for home loan. Here is the detailed paperwork required for each of these categories.
Documents required for a home loan
Submit the following home loan documents at the time of application:
Proof of identity (any one)
- Driving license
- Voter ID
- PAN card
- Aadhaar card
Proof of address (any one)
- Any one of the proofs of identity mentioned above
- Property tax receipt
- Water tax
- Utility bills
- Occupancy certificate (in the case of constructed apartments)
- Payment receipts indicating payments made to the builder or a seller
- Detailed computation of the construction expenses
- Land tax receipt and possession certificate from the revenue/ land revenue / land department
- No objection certificate from the builder or housing society
- Allotment letter, agreement of sale (stamped) or sales deed
Along with these documents, a financier will also instantly take an applicant’s passport-sized photographs to process the home loan application.
Documents needed for self-employed individuals
In the case of a self-employed applicant, the documents required for a home loan are as follows:
Bank account statement
- Previous six months
Financial statements (with attestation from a CA)
- Balance sheet
- Profit and Loss a/c statement
- ROC registration certificate
- SEBI registration certificate
- Import Export Code
- Memorandum of Association/Articles of Association
- Partnership deed
- Trade license
- GST registration certificate
- PAN card
With technological evolution, availing an urgent home loan has become swifter and easier. Go through the types of housing loans that one can opt for to borrow effectively.
Home loan eligibility criteria
Apart from the documents required for home loan, one must know the following eligibility terms for a loan application:
|For self-employed: 25 years – 70 years
For salaried: 23 years – 62 years
|Business vintage/Work experience
|For self-employed: Not below 5 years
For salaried: Work experience of at least 3 years
|750 or above
Financiers take into account various parameters such as EMI payables, monthly salary, other sources of earnings and repayment tenor.
With the help of an online home loan eligibility calculator, borrowers can conveniently check their loan eligibility and take the right decision. This prevents loan application rejections that can negatively impact their CIBIL score and credit behaviour.
Procedure to avail a housing loan
Apply for home loan through the following steps:
Step 1: Visit the official website of the financier and select ‘Apply Online’.
Step 2: Provide the required personal details and complete the verification procedure using an OTP.
Step 3: Enter the suitable repayment tenor and loan amount.
Step 4: Enter financial, personal, property and employment details.
Now, one can contact a representative to complete the loan application process. If an individual cannot finish the application procedure in one go, there is an option to resume it using the same link afterwards.
Note that some reputed NBFCs provide time-saver pre-approved offers for prospective customers that simplify and accelerate a loan processing procedure. Such offers are available for financial products like home loans.
Borrowers require furnishing their names and contact numbers to check their pre-approved loan offer online. In this case, the documents required for home loan will be minimal.
After successful home loan processing and document verification, one will get a loan sanction letter. Selected financiers offer digital sanction letters within minutes. Once an applicant accepts this letter, the financier will ask for the property papers to approve the loan agreement and disburse the funds quickly.