Documents required for Home Loan: A complete checklist

Banks require some documents to process your home loan. These documents help verify your identity and protect banks from risk
 

Home loans are big-ticket loans and significantly impact lenders' operating performance. Timely repayment of home loans is essential for banks and financial institutions; therefore they are mandated to know your identity and financial condition in great details before offering home loans to you.

You must submit various home loan documents of your identity, address, income, and proof of purchased property. The article below lists various documents required for a home loan based on the applicant type.

Documents required for salaried and self-employed individuals
 

Salaried or self-employed individuals must submit their identity and income proof to apply for a home loan. In addition, they must also produce documents related to their property or the house.

A duly filled home loan application form
 

An identity proof
 

You can submit any of the documents as given below.

• PAN
• Aadhaar 
• Passport
• Driver's license
• Voter's ID card

Proof of age
 

For age proof, you can submit any of the following documents.

• Aadhaar 
• PAN
• Birth certificate
• Class 10th mark sheet
• Bank passbook 

Proof of address
 

You need to submit any one of the following documents as proof of address.

• Latest utility bills 
• Bank passbook
• Ration card
• Passport
• Letter from government authority verifying your address
• LIC policy receipt 

Income proof for salaried individuals

• Letter from the employer mentioning your salary
• Form 16 
• Latest salary slips for the last three months
• Increment or promotion letter
• ITR (Income Tax Return) for the last three years

Income proof for self-employed individuals

• Last three years IT returns proof
• Balance sheet and profit loss statement of the company signed and attested by a CA
• Business license certificate
• Professional practice license for doctors and consultant
• Registration certificate for the firm
• Proof of business address 

Property documents

• Payment receipt made to the builder
• Buyer's agreement or allotment letter
• Title deed along with previous property documents in case of property resale 
• Sale agreement copy in case the sale has already been executed
• Title deed of the plots in case of house construction
• Detailed estimate of house construction by civil engineer/architect
• A copy of the plan approved by the local authority
• Proof of no encumbrance on the property

Other required documents

• Passport size photograph of all the applicants
• Proof of your contribution
• Bank statement for last six months showing active loan repayment
• Detail of ongoing loans in the name of the individual or the business entity
• A cheque for processing fee in favour of the lender

Additional documents depending on the type of applicant

• For salaried individuals: Employment contract (appointment letter) in case the applicant is employed for less than a year.
• For self-employed individuals: Business profile, latest form 26 AS, List of directors and shareholders, including their shareholding certified by a CA, and company MoA.

List of home loan documents required for NRI applicants
 

Here are the necessary documents for NRIs applying for a home loan.

KYC documents

• PIO card/Passport with visa details
• Address proof stating the current overseas address

Income proof for salaried NRIs

• Work permit
• Employment contract, appointment letter duly attested by the employer or consulate in case the letter is in a foreign language.
• Labour card or an ID card 
• Last three months' salary slips stating name, designation, salary and salary details.
• Six months' bank account statements and credit bureau report
• A copy of CDC (Continuous Discharge Certificate) for Merchant Navy personnel
• Form P60/45 and employment contract

Income proof for self-employed NRIs

• Business license
• Registration certificate for establishment (For shops, factories, etc.)
• Proof of address for the business 
• Last three years' balance sheet and profit and loss account verified by a CA
• Last three years IT returns
• Last six months' bank account statement of the overseas account in individual's or business name 

Property documents

• Encumbrance certificate
• Title deed in original mentioning the titles of the property
• Sale agreement, cost estimate from an architect/engineer for the property to be purchased 
• A copy of an approved drawing of the proposed building 
• ULC clearance
• Payment receipt 
• Receipt of payment of the money through normal banking channels from the NRE/NRO account

You also need to self-attest all the documents. In addition, the bank or the lender may ask for extra documents. 

To make the home loan application hassle-free, you must keep all the documents handy. IDFC FIRST Bank home loans have an easy application process and minimal documentation. Moreover, if you are an IDFC FIRST Bank account holder, you get zero processing fee on home loans and an attractive interest rate.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.