Home loans are beneficial for individuals to purchase or construct a new house. We all want to build or buy the house of our dreams but struggle due to financial constraints. With a house loan, people can easily finance the purchase of a new home irrespective of the current economic situation. There is a complete process to acquire a house loan in India. The house loan approval process requires individuals to submit some documents. Without the necessary documents, the house loan application of an individual will be rejected. Read on to know the documents needed to acquire a house loan in India.
Documents required for house loans (salaried individuals)
For salaried individuals, the documents needed for home loans are as follows:
- A completely-filled house loan application.
- A document for ID proof to the lender. It could be the Aadhar card, PAN card, voter ID card, driver’s license, or any other ID proof of the applicant.
- A document to prove the age mentioned in the house loan application. It could be the birth certificate, 10th mark sheet, driving license, or any other ID card of the applicant.
- A document to prove the residence address mentioned in the house loan application. It could be a bank passbook, utility bill, passport, LIC insurance receipt, or other address proof.
- A document to prove the income mentioned in the house loan application. Salaried individuals have to submit Form 16 and payslips along with the home loan application. Salaried individuals can also be asked to submit an increment or promotion letter along with the loan application.
Documents required for house loans (self-employed individuals)
Self-employed individuals must submit the abovementioned documents for age, residency, and ID verification. Other documents required for home loan (self-employed individuals) are as follows:
- Income tax return for the past few years of the self-employed individual.
- Proprietors and business owners must submit the firm’s balance sheets and profit/loss statement.
- Firm’s license or any other document that has company details.
- Doctors, physiotherapists, and other professionals must submit their professional practice licenses.
- A document to prove the business/company location mentioned in the home loan application.
- Shop and factory owners have to submit proof of establishment with the loan application.
Self-employed individuals are asked to submit a few extra documents to prove their income and creditworthiness. Instead of Form 16, self-employed individuals must provide bank account statements and the firm’s balance sheets to the loan provider.
Additional documents required for a house loan
House loans can be offered to construct a house or buy a ready-made house. For the same reason, the lender asks for proof of buying/constructing a house. Some additional documents required for home loans in India are as follows:
- Individuals must submit proof of payments made to the previous owner/developer for a new house.
- A buyer agreement or allotment letter can be demanded from individuals along with their loan applications.
- For home construction, an architect’s or engineer’s estimate is asked by the lender.
- In the case of home resale, preceding property documents are needed.
- The lender can also ask for a copy of the construction plan approved by the local/state authorities.
- Individuals may have to submit documents to prove there are no encumbrances.
- Title deeds can be asked for by the lender along with the house loan application.
Apart from all the aforementioned documents, individuals must also provide passport-size photographs with the loan application. The documents required for home loans can change from one bank to another. With PNB housing, you can apply for a house loan with minimum documents. Submit the house loan application with all the required documents now!