A home loan is a great way to finance the purchase of your new home. Home loans are available from banks, credit unions, and other financial institutions in India. Most lenders will require that you have good credit to qualify for a home loan. The interest rate on your home loan will depend on several factors, including your credit score, the type of loan you choose, and the length of the loan term.
Home loan applicants in India are required to submit several documents along with their loan application. Some of these documents required for a home loan are mandatory, while others may be required depending on the applicant’s circumstances.
It is important to have all of these documents ready before you apply for a home loan so that the process can go smoothly.
1. Documents Required to Apply for a Home Loan:
The following is a list of documents that are generally required for a home loan online application:
- Passport size photographs
- Identity proof
- Residence proof
- Bank statement/ passbook for the previous month’s statement
- Verified signature by bank officials for the applicant
- Documents for personal assets
- Salary certificate
- Form 16
- IT return
- Challan for tax payments
- Business authentication for self-employed individuals
- It returns for self-employed individuals
- Challans for self-employed individuals
2. Documents Required for NRI applicants.
These are the list of documents that any NRI applicant would have to prove the band with before moving forward with a home loan. These documents will be accessed and verified by the bank officials before sanctioning a home loan to the individual.
- Authentication establishing KYC of the individual
- The salary certificate states the name(according to the passport), designation, date of joining, and the last drawn salary. Also, the passport number needs to be mentioned in the salary certificate.
- Salary slips for the last 6months
- Newest T returns
- The trader’s license, power of attorney, and the sponsor agreement if the individual is self-employed.
- The passport covers the page of the residence visa.
- Employment proof of the individual certified by the government where the individual is residing
- Overseas bank account statement from the past 6 months
- If the individual is unable to sign the document, the individual needs to select a power of attorney of their choosing and follow up with the documentation.
3. Know Your Client (KYC) Documents required for Home Loan
These are the KYC documents that every individual signing up for a home loan will need to provide for KYC verification
Photo ID verification
Individuals will be required to provide for any of the following in order to support their photo or identity verification. They will need to provide either your passport, PAN card, voter ID card, or Driving license.
Individuals, to prove their residence verification, will need to provide any one of the following documents. They are electricity bills, telephone bills, passbooks, or bank statements with addresses, ration cards, or employment letters.
Individuals, for age verification, will need to provide certain documents to the bank. They can either have a PAN card, birth certificate, bank passbook, passport, driving license, or mark sheet of 10th grade.
Documents required for Loan Guarantor
The loan guarantor for the individual applying for the loan will also need to present the bank with specific details for the bank to authenticate the individual. The documents required for the loan guarantor are a liability statement, 3 passport-size photographs, residence proof, identity proof, and business address proof.
A home loan for specific individuals is very crucial to buy or build their dream home. Check out these documents that you will need to provide the bank with when you apply for a home loan. The bank officials will further record and authenticate all the documents that you will provide them before sanctioning any home loan.