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Documents Required for Home Loan

For most Indians, buying a house is probably one of life’s biggest achievements. Finding the right house and then getting a suitable home loan are almost equally important. But it is not just a lack of finances that makes people opt for home loans. There are many other benefits that you can enjoy when you get a home loan.

Understanding Home Loan

In simple words, a home loan is a specified amount of money that you borrow from a financial institution such as a bank or a lending company. You pay a certain EMI on a monthly basis to pay off the loan. The property is regarded as a security by the lender. In case that the borrower is not able to pay off the loan, the legal rights of recovering the loan amount are with the lending company.

Types of Home Loans

A home loan has a much wider scope and not just buying a new house. There are various types of home loans:

  1. Home Purchase Loan
  2. Home Construction Loan
  3. Home Improvement Loan
  4. Land Purchase Loan
  5. Joint Home Loan
  6. Home Loan Balance Transfer
  7. Top-Up Home Loan

Benefits of a Home Loan

Unlike other loans that may be considered a liability, when you undertake a home loan, you are basically building up an asset. This asset in most cases will only appreciate with time. This makes taking a home loan quite advantageous.

  • You can Get your Dream house

    A home loan has the ability to turn your dream into a reality. It makes buying a house affordable.

  • Repay as per your Pocket

    Home loans are quite flexible. You can choose a repayment term for as many as 30 years, making the monthly instalments well within your reach. As per your budget you can choose an EMI and pay off the loan.

  • Tax Benefits

    Considered to be the biggest tax-saving instrument, home loans allow you to save a great deal. Under Sections 24, 80C and 80EEA of the Income Tax Act, you can claim up to INR 5 lakhs as tax deduction.

  • Growth of your Assets

    Your house is an asset that can offer you the highest appreciation benefits. Unlike a car, the value of this asset will not decrease because of depreciation.

  • Easy Procedures

    With Piramal Capital and Housing Finance, from your loan application to the payment journey, the procedures are easy-to-understand and transparent. Our dedicated customer care team offers you constant support whenever you need it.

What are the documents needed for home loan?

Though going through the loan application may seem a difficult task, if you do your homework, you can sail through this process in a hassle-free manner. The home loan documents that are needed along with the loan application are mostly based on the profession/occupation of the applicant. Let us first take a look at the documents that are common for all:

  • PAN
  • Identity Proof
    • Aadhar Card
    • Driver's Licence
    • Voter's ID Card
    • Passport
  • Address Proof
    • An Identity Proof with the permanent address
    • Telephone Bill
    • Electricity Bill
    • Water Tax
    • Property Tax receipt
    • Post-paid Mobile Bill
  • Property-Related Documents
    • Stamped agreement of the sale/ Sales Deed or the letter of Allotment
    • NOC from the builder/ housing society
    • Possession Certificate
    • Detailed Construction cost estimation
    • Bank Account statement
    • In case of Constructed Apartment - Occupancy Certificate
  • Passport Sized photographs

Home loan documents list for Salaried Applicants:

  • Income Proof
    • Salary Slips (latest)
    • Form-16
  • Bank Account Statements of last 3 months

Home loan documents list for Self-employed Applicants:

  • Bank Account Statements of last 6 months
  • PAN
  • Proof of Business existence
    • GST Registration Certificate
    • Trade License
    • Partnership Deed
    • Import Export Code
    • SEBI Registration Certificate
    • Memorandum of Association
    • ROC Registration Certificate
  • Financial statements that have been audited by a CA
    • Balance sheet
    • Profit and Loss Statement Sheet

Importance of housing loan documents

The list of documents discussed above are important. The home loan documents need to be submitted so that the lender can verify your financial standing and other essential details. The home loan documents can either be physically handed over to the company executives or through the online company portal page.

When you submit all the housing loan documents timely and in an orderly manner, you allow quicker verification and thus quicker processing of your home loan. Missing out on an important document will cause unnecessary delays in the verification. This would directly affect the other formalities.

Bottom Line

When you are aspiring to buy the dream house through a home loan, preparing yourself in advance can be very helpful. Make sure your tick all the boxes in the home loan documents list. Getting things in order will make the application process simpler and quicker.

Frequently Asked Questions

  • Is it possible to get a home loan without submitting the housing loan documents?

    If the property against which you seek loan is under construction, the loan may be obtainable without some of the above mentioned documents. But keep in mind that the property must be registered and a “Completion Certificate” has to be obtained.

  • Can I get a Home loan without any home loan documents?

    The application procedure of every bank/financial institution is different. However, in most cases if the borrower already has a home loan from a particular lender, he can get the home loan sanctioned without any documentation. Some lenders also allow digital sanction if the borrowers apply for a home loan online, without any documentation.

    It should be noted that at the time of disbursal/ verification the documents may be required.