With home loans available in the market, the dream to own a home has become a reality for many. There are a few important factors which are the deciding factors like, home loan eligibility criteria, the interest rate for a home loan. But to avail, the loan documentation always plays a vital role. Documents help bankers know about the borrower in a better way. As a home loan is a secured loan so you need to give a guarantor as well as you have to pledge any of your assets as collateral, for example, property papers, which makes the process a bit difficult. All this is done so that a banker can build trust in a better way.
Why documents are necessary:-
- While applying for a home loan, age is important as it is a term loan, so with the documents, bankers verify the age. In a home loan, a borrower should be at the age of repayment until the loan gets over.
- Financial documents determine the capacity of repayment. These documents give a clear picture of finances that a borrower is handling. For example, a bank statement will showcase the expenses and if any credit was taken recently.
- A credit report is important because the score should be in an eligibility range which has been prescribed by the bank or NBFC if not the bank will reject the loan.
- Monthly income statements are important proof of document as they can easily assess the repaying power.
Eligibility criteria for the salaried employee:-
- A borrower should be a resident of India
- A borrower should be between 23 and 62 years of age
- A borrower should be a salaried individual with a work experience of 3 years or more
- A borrower working in a tier 1 city should have a salary of Rs 30,000 per month and a borrower working in tier 2 city should have a salary of Rs 25,000 per month
- Credit score greater or equal to 750
Eligibility criteria for self-employed:-
- A borrower should be a resident of India
- A borrower should be between 25-70 years of age.
- A borrower should be a self-employed individual who has been doing current business for a minimum of 5 years and earning profits
- Credit score greater or equal to 750
Documents required from salaried professional
- Bank loan form duly filled
- Address Proof- Registered Rent Agreement / electricity or telephone bills (up to 3 months old)/ Passport
- Identity Proof- Aadhaar card/ Passport / Driving License / Voter ID / PAN
- Income Proof- Last three months salary slips, Form 16 of last two years, and a copy of Income Tax PAN
- Bank Statement- Last six months bank statement which has salaries received from your current employer
Documents Required for Self Employed– Professionals
- Address Proof- Registered Rent Agreement / electricity or telephone bills (up to 3 months old)/ Passport
- Identity Proof- Aadhaar card/ Passport / Driving License / Voter ID / PAN
- Office Address Proof- Property Documents, electricity and telephone bills
- Office Ownership Proof- Property Documents, electricity and telephone bills, Maintenance Bill.
- Business Existence Proof- the Company Registration license, Shop Establishment Act, 3 years old Saral Copy
- Income Proof- Latest 3 years Income Tax Returns which should have Computation of Income, Audit Report, Balance Sheet, Profit & Loss Account etc.
- Bank Statement- Bank statement of the last 12 months
- One coloured passport size photograph
Also Read :- Home Loan Interest Rates
Documents required for under-construction home:
- Duly filled application form
- Age proof along with address proof- Aadhaar card/ Passport / Driving License
- Income proof- Latest 3 years Income Tax Returns
- Bank statements- Bank statement of last 6 months
- Identity proof- Aadhaar card/ Passport / Driving License / Voter ID / PAN
- Educational Qualification proof- Marksheets
Documents Required for Senior Citizens:
- One passport size coloured photograph
- Identity Proof: Passport / Driving License / Voter ID / PAN
- Address Proof: License / Registered Rent Agreement / Utility Bill
- Age Proof: Pan Card or Passport
- Income Proof: Pension Returns Or Bank Statement
Documents for a home loan transfer
- Passport-size photographs
- Filled application form for loan transfer (of the bank / NBFC)
- Three months salary slips
- Identity Proof- Pan Card, Passport / Driving License / Voter’s ID card
- Address proof: utility bill/voters ID / Aadhar card.
- Age proof- Marksheets/ Passport/ Aadhaar card/ Voter Id
- If you are a self-employed professional or businessperson, provide documents related to existing business
- Bank statements of last six months which reflect the current home loan EMI deduction
- All the documents related to collateral which is in possession
