A Home Loan offers assistance to people in obtaining finances to buy a home. Hence, potential borrowers should be aware of the paperwork needed for a Home Loan to have it on hand when applying for this financing option.

Home Loan Applications are frequently turned down because of inconsistencies in the supporting documentation. If you keep your list of required documents sorted, your Online Home Loan Applications will be approved more swiftly. You will undoubtedly need to provide documentation when applying for a Home Loan, including proof of your identity, address, source(s) of income, and property validation.

We have compiled a list of the paperwork needed for various sorts of Home Loan applicants to simplify your journey towards obtaining a mortgage.

Home Loan Requirements for Salaried and Self-Employed Applicants

  • A loan application that has been thoroughly completed and signed
  • Passport size photographs
  • Identify proof
  • Residence proof
  • Bank account statement/Passbook for the last six months
  • Bank verified applicant's signature
  • Liabilities statement and personal assets
  • Property documents
  • Salaried individuals
  • Salary Certificate from the employer
  • Form 16/ IT Returns for the past two financial years
  • Self Employed Individuals
    • Copies of the assessment orders and IT Returns over the previous three years
    • Challans as evidence of payment of advance income tax
    • Proof of business address

List of Paperwork Needed for NRI Applicants

To apply for a Home Loan in India, an NRI (Non-Resident Indian) or PIO (Person of Indian Origin) applicant must present the following paperwork:

  • A document outlining KYC
  • Salary slips from the last three to six months 
  • Salary certificate from the employer showing the name (as per Passport), position, passport number, date of joining, and most recent pay in English
  • Business Paperwork is required for NRIs who are self-employed, such as a trade licence, a sponsor agreement, a power of attorney, etc.
  • Passport photocopy including the page of the residency visa
  • Proof of Employment, such as a work permit or employment contract, from the government of the nation where you are currently residing.
  • Up-to-date IT Returns (for applicants filing IT Returns in the country)
  • Copies of the last six months' worth of international bank statements
  • Documents of the property that include price quotes from Indian architects or engineers
  • If there is no recorded proof of salary credit or money remitted to India, salaried NRIs must provide income documentation confirmed by an embassy official.
  • Non-Resident Ordinary (NRO)/NRE Bank Statement for the preceding six months
  • The representative must present a power of attorney if the applicant is not present in the nation when the paperwork is being signed

List of KYC Documents

The following list includes some of the documents used for KYC:

Identity Proof ( Any One)

  • Aadhaar card
  • Voter ID card
  • PAN card
  • Passport
  • Driving licence

Residence Proof ( Any One)

  • Aadhaar card
  • Voter ID card
  • Bank passbook
  • Ration card
  • Passport
  • Utility bills, such as electricity bill, water bill, gas bill or telephone bill
  • Insurance policy receipt
  • A letter from a recognised resident authority certifying the applicant's residence 

Age Proof ( Any One)

  • PAN card
  • Passport
  • Birth certificate
  • Marksheet of class 10
  • Driving licence

List of Documents Needed for Loan Guarantor

  • Statement of liabilities and personal assets
  • Two passport-sized Photos
  • Identity evidence
  • Residency evidence
  • Proof of business address
  • Signed verification from current bankers.

List of Property Paperwork Needed for a Home Loan

  • Share certificate (original) or sale deed, if applicable, in the case of a cooperative association
  • Tax receipts for the building and land, a certificate of possession, and a certified map showing the location of the property are all required by the tax authorities
  • Letter of allocation from a private builder/housing authority/society
  • Advance payment receipts for a flat purchase
  • Certificate of no encumbrance for the last 12 or 30 years
  • Receipt for the payment of the land tax and a possession certificate from the revenue authorities
  • Authorisation letter from the proper authority
  • Building plan approved (showing floor plan for flat purchase)
  •  No-Objection Certificate (NOC) from the builder or housing association
  • An accurate cost estimate for the building.
  • Letter from the society/builder/housing board providing their bank and account information for remitting instalments
  • The report in standard format from an appointed valuer detailing the valuation of the property
  • Documents are needed for the transfer of original property documents when the loan is closed
  • Power of attorney to get original property papers
  • If the loan borrower passes away:
  • Letter from the legal heir or nominee asking for transfer of property papers (s)
  • Letter giving up the legal heirs' or nominees' right to receive property papers

Wrap Up

Providing the lender with appropriate documents is essential to avoid the rejection of your Loan Application. Check out the list we've provided to get an in-depth picture of the Home Loan Requirements and paperwork needed for financing. It is important to keep in mind that these specifications might change, so it's essential to confirm the specific documents needed with your lending institution.