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Home loans are secured loans. So, lenders require certain property documents before they sanction the loan. Different lenders may require their own specific documents as well as other criteria that need to be successfully met.

Mentioned below is a complete list of documents that are needed to apply for a home loan.

General documents needed for a home loan

1. Completed application form for a home loan

2. Photographs (passport size)

3. Proof of identification (POI) (any one of those mentioned below)

• Aadhaar Card

• PAN Card

• Passport

• Driving License

• Voter’s ID Card

1. Proof of address/residence (POA) (any one of those mentioned below)

• Passport

• Ration Card

• Bank Passbook

• Voter’s ID Card

• Utility Bills (such as Electricity Bill, Water Bill, Gas Bill, Telephone Bill)

• LIC Policy Receipt

• Letter issued by a recognised authority, verifying the address of the customer

2. Proof of age (any one of those mentioned below)

• Passport

• Aadhaar Card

• Birth Certificate

• PAN Card

• 10th Class Marksheet

• Driving Licence

• Bank Passbook

3. Documents Indicating Income

For salaried individuals:

• Form 16

• Certified letter obtained from the employer

• Salary slip (of past two months)

• Increment/Promotion Letter

• Income tax returns (of past three years)

Besides proof of income for salaried individuals, he/she may be required to submit any proof of investments (such as shares, fixed deposits, etc.) along with passport-size photographs.

For self-employed individuals:

• Income tax returns (or ITR) of the past three years

• Balance sheet as well as profit and loss account statement of the company or firm (which has been duly attested by a chartered accountant)

• Business licence details (or some other equivalent document)

• The licence of professional practice (such as those for doctors, consultants, etc.)

• Registration certificate of the establishment (for factories, shops, and other establishments)

• Proof of business address

Property documents needed for a home loan

• NOC (No Objection Certificate) from builder/society

• An in-depth estimate of the cost of constructing the house

• Registered sale deed, allotment letter, or stamped agreement of sale with the builder (only original document)

• Occupancy Certificate (when it comes to ready-to-move-in properties)

• Electricity bill, maintenance bill, and property tax receipts

• Receipts of advance payments executed towards the purchase of the flat (only original document)

• An approved copy of the building plan (floor plan/key plan when it comes to purchasing of flats)

• Original land tax paid receipt and possession certificate, as issued by the Revenue Authority

• Payment receipt/bank account statements demonstrating payments made to the builder/seller

Documents needed for loans for under-construction homes

• Proof of age and proof of address

• Proof of income

• Identity proof

• Proof of educational qualifications (such as certificates or mark sheets)

• Completed application form

Documents needed when the applicant is a senior citizen/pensioner

• 1 colour photograph (Passport size)

• Proof of identity (Passport/Driving licence/PAN card/Voter ID card)

• Proof of address/residence (Licence/Utility bills/Registered rent agreement)

• Proof of age (Passport or PAN card)

• Proof of income (Bank statement or Pensions returns)

Documentation plays a vital role because this is the sole way by which lenders get to know their customers in a better manner. The process of documentation when it comes to a home loan is a tad complicated because it is a secured loan. Here, you must provide a guarantor and security in the form of property papers so that lenders can trust you and sanction the loan without facing any risks.

On a final note

Residing in one’s own home is no longer a dream. With the help of a home loan, this necessity can be fulfilled with relative ease.