Know the Documents Required for Availing a Housing Loan

Know the Documents Required for Availing a Housing Loan

The percentage of the home loan in the Indian financial market has grown by 17% to 19% owing to the growth in the real estate sector. Availing such advances requires you to hold financial stability and considerable income. While you fill a home loan application form you are required to submit the documents required for home loan supporting the provided details on your form. Also, these documents are required by your lender to evaluate your repayment capability depending on which your approval will be made.

Discussed below are some of the documents that you are required to submit while you apply for a home loan. Required documentation is different for self-employed individuals and salaried employees.

Self-employed individuals

The home loan documents required for self-employed individuals are –

  • Identity proof – you can submit your Voter card, photo identity card issued by the Government, driving licence, etc. (any one of the mentioned documents needs to be provided.)
  • KYC documents – PAN card, Aadhaar card, passport, etc.
  • Address proof – Electricity bills, water bills, gas bills, telephone bills, ration card, life insurance policies, municipal tax receipts, credit card statement, etc. (any one of the mentioned documents.)
  • Income proof – Income tax reports, account statements, profit and loss balance sheets, etc.
  • Business proof – You are required to submit documents like trade licence certificate, SEBI registration certificate, SSI registration certificate, GST registration certificate, partnership deed, Memorandum of Association, factory registration certificate, etc. (any one of the mentioned documents.)

Salaried employees

The documents required for a home loan for salaried employees are the same as the documents required by self-employed individuals. Salaried applicants are additionally required to provide recent salary slips, Form 16, among others which may vary between lenders.

Apart from the above, there are other documents you need for a home loan such as property documents which include sales agreement, a copy of the receipt, and copy of allotment letter or buyer’s agreement.

Along with these documents, an applicant is also required to meet certain home loan eligibility criteria such as –

For self-employed individuals

  • Applicant must be between 25 years and 70 years of age.
  • Have a minimum of 5 years of experience in the same business.

For salaried employees individuals

  • Applicant must be between 23 years and 62 years of age.
  • Have a working experience of more than three years.

Besides, you should be a resident of India residing in any of the cities where your lender would operate.  You can use a home loan eligibility calculator to check if you are eligible to avail such advances.

Several lenders offer such calculators to help applicants check their eligibility. There are several lenders that offers Home Loan at attractive interest rates against minimal documentation and easy-to-meet eligibility criteria.

Furthermore, such advances also offer you a convenient application process. You can opt for a home loan online apply option. Fill an online application form available on the official website of your lender. To fill the application form, you are required to provide your personal and financial details like your name, contact details, address, annual income, etc.

After your application is approved, a representative of your lender will get in touch with you and visit you to collect the required documents as mentioned above. Following the verification of your document the loan amount will be disbursed to your account. To ensure smoother disbursal process, do make sure to keep these documents handy. Also, the above mentioned documents are indicative and your lender may require additional documents. Hence while you apply, do make sure to enquire your lender about the documentation requirement beforehand.