Documents Required For Home Loan

A variety of different types of home loan options are available in the market offered by various banks. However, the eligibility criteria and the documents required for each bank are different.

Let’s look at the requirements for some of the most popular financial institutions in India.

Document Required for HDFC Home Loan

HDFC home loan documents requirement list is below:

  • HDFC Home Loan Application Form, duly completed and signed.
  • Proof of identity – A copy of any of the following proofs of identity: Aadhaar, PAN, Passport, Voter ID, Driving License, and so on.
  • Proof of residence – A copy of any of the following proofs of residence: Aadhaar, Passport, Voter ID, Driving License, and so on.
  • Income Documentation/statement
  • Documents Concerning Real Estate

For salaried employees the additional documents required are -

  • Income documentation – a copy of the following documents:
    • Salary Slips for the previous 3 months
    • ‘Last six months' salary credits are shown on bank statements
    • Form-16 and IT returns documents which are up to date
  • Property documents required for a home loan - For new construction:
    • A duplicate of the Allotment Letter/Buyer Agreement
    • Receipt of payment(s) made to the developer
    • Plot title deeds
    • Proof of No Encumbrances on the property
    • A copy of the plans that have been approved by the local authorities
    • An architect's or civil engineer's construction estimate
  • Other documents – a duplicate or original of the following:
    • Proof of Contribution
    • If the current job is less than a year old, an employment contract/appointment letter is required.
    • Bank statements from the previous six months demonstrating the repayment of current financial liabilities.
    • A passport-sized photo of the applicant and any co-applicant (if any) is affixed to the HDFC home loan application form and signed across.
    • Paying the processing fee with a check made payable to HDFC Ltd.

For self employees the additional documents required are -

  • Proof of income – A copy of Income Tax Returns (ITR) and income calculations for the previous three assessment years. These documents are needed for both the individual and the business entity. A CA must attest to the documents.
  • Balance Sheet and Profit & Loss Account Statements for the previous three years, as well as Annexures / Schedules. These documents are required for both the individual and the business entity. A CA must attest to all documents.
  • Current Account Statements of the business entity and savings account statements of the individual for the previous six months.
  • Documents pertaining to real estate – A copy of the following documents: For New Construction:
    • A duplicate of the Allotment Letter / Buyer Agreement
    • Receipt of payment/(s) made to the developer

For agriculturists the additional documents required are -

  • Income documentation - A copy of the following documents:
    • Agricultural land title documents depicting landholding.
    • Agricultural land title documents showing crops being cultivated.
    • Bank statements from the previous six months.
  • Other documents that are related – a duplicate or original of the following documents:
    • Bank statements from the previous six months demonstrating repayment of any outstanding loans(s).
    • A passport-sized photo of the applicant and any co-applicant (if any) is affixed to the HDFC home loan application form and signed across.
    • Paying the processing fee with a check made payable to HDFC Ltd.
    • Evidence of one's contribution.
    • Statement of loans obtained in the previous two years (if any).

Document Required for LIC Housing Loan

LIC Housing Finance Limited (LICHFL) provides a variety of home loan options to salaried, self-employed, and retired individuals.

The interest rate on a LIC home loan starts at 6.66% per annum. This makes it one of the most competitive home loan rates in India.

Below are the details for LIC housing loan eligibility and documents requirements:

Eligibility criteria for LIC housing finance loans -

  • The source of income of a candidate (income from self-employment or monthly gross salary).
  • The applicant's age at the time of the loan application, as well as their retirement age
  • The income of an applicant's family.
  • The stability and continuity of an applicant's employment or business.
  • The assets and liabilities of a candidate (if any).
  • The applicant's income depends on the number of dependents he or she has.

Documents required for housing loan -

  • Completed home loan application form.
  • Aadhaar Card, PAN Card, Voter ID Card, or Passport as proof of identity.
  • Passport, Ration Card, Electricity Bill, or Telephone Bill as proof of residency.
  • Bank Passbook or bank account statements from the previous two years.
  • Wherever possible, a power of attorney should be used.

Other documents that the Housing Finance Company (HFC) may request are:

If the property is purchased from a builder -

  • A copy of the Sale Agreement
  • A duplicate of the registration receipt
  • A few copies of previously paid receipts
  • Builders' No Objection Certificate (NOC)
  • A copy of the sanctioned plan as well as the sanction letter
  • Where applicable, a copy of the NA permission/ULC clearance

If the property is through co-operative Housing Society Direct Allotment -

  • Letter of allocation
  • Certificate of ownership
  • Certificate of Registration in a Society
  • A copy of the sale/lease agreement in favor of the society
  • Society's NOC
  • Copies of the sanctioned plan and the sanction letter
  • Where applicable, a copy of the NA permission/ULC clearance

If the property is through Public Agency Direct Allotment in a Cooperative Housing Society -

  • Letter of Allotment, Share Certificate, and Society Registration Certificate
  • Lease Arrangement
  • The approved membership list of a government agency
  • NOC from a government agency in favor of LICHFL
  • Society's NOC
  • Copies of the sanctioned plan and the sanction letter
  • Where applicable, a copy of the NA permission/ULC clearance

If the property is through direct allotment in a Co-operative Housing Society by a Public Agency -

  • Letter of Allotment, Share Certificate, and Society Registration Certificate
  • Lease Arrangement
  • The approved membership list of a government agency
  • NOC from a government agency in favor of LICHFL
  • Society's NOC

If the property is brought with allotted funds by government agencies -

  • Letter of Appointment from a Government Agency
  • Tripartite Agreement in the prescribed format between the borrower, LICHFL, and the Public Agency

If the property is a resale property -

  • A copy of all previous vendors' registered documents
  • A copy of your purchase agreement that has been duly stamped and registered
  • A copy of the registration receipt, if applicable
  • Society's/NOC Builder's
  • The original share certificate (wherever applicable)

Additional documents required:

For salaried people -

  • Salary slips for the previous 6 months
  • 16th Form

For entrepreneurs/self-employed -

  • Three years' worth of income tax returns/assessment orders, as well as income computations and statements of accounts certified by a C.A.
  • Three years' worth of financials – profit and loss statement, balance sheet, audit reports, and so on.

Document Required for Bank of Baroda Home Loan

When it comes to the Bank of Baroda, the process of obtaining a home loan becomes extremely simple. All you need to do when applying for a home loan is make sure you have all of the necessary documents.

Bank of Baroda home loan documents required are:

  • Completed and signed application form, as well as three passport-sized photographs
  • Proof of Identity -
    • PAN CARD (required for loans exceeding Rs. 10.00 lacs)
    • Aadhar Card/Driver's License/Voter ID/Passport
  • Proof of residency (Driver's license/Voter ID/Passport/Aadhar Card/Registered Rent Agreement)
  • If you have a previous loan, you must provide a loan account statement for the previous year, as well as a sanction letter. (If the loan is from Bank of Baroda, only the Account Number/Customer ID is needed)
  • Asset proof, such as a LIC/NSC/KVP/MF/Property Assets and Liabilities statement (Form 135)
  • Report on ITR Verification

Additional documentation that may be required for salaried applicants -

  • Guarantors' most recent three-month salary slips and one-month salary slips.
  • Form 16 and ITR for the applicant and guarantor from the previous year.
  • Employer provides a copy of the employee identification card.
  • Appointment/confirmation/promotion/increment letter demonstrating length of employment.
  • If you do not have a Bank of Baroda account, please provide 6 months of bank account statement (Salary/Individual).

Additional documents that may be required for self-employed applicants -

  • Balance sheet and profit and loss account, income computation for the previous two years.
  • Income Tax Returns – Applicants, 26 AS, Traces – last 2 years
  • Business documentation includes, among other things, a Gumasta license, a registration certificate, and a service tax registration.
  • Income Tax Challans/TDS Certificate (Form 16A)/Form 26 AS for income declared in ITR, IT Assessment/Clearance Certificate.
  • In the case of applicants conducting business through a Partnership Firm/Private Limited Company, the firm's PAN Card and address proof are required.
  • Memorandum of the firm's ITR and audit results for the previous two years.
  • Statement of current accounts for the previous year.

Additional documents that farmers may be required to submit -

  • Talati's/Gram Sevak's/Village Revenue Officer's Certificate for the previous two years' income, and Mamladaar's/Block Revenue Officer's Certificate for the previous year's income.
  • Forms 6, 7/12, and 8A are land revenue records.
  • Statement of bank accounts for the previous 12 months.

Document Required for Punjab National Bank Home Loan

Punjab National bank home loan documents requirement list is given below –

Punjab National bank home loan documents required for a salaried person:

  • Completed home loan application form with a photograph.
  • Aadhaar Card, PAN Card, Passport, Driving License, and Voter's ID Card are examples of identity proof.
  • Aadhaar Card, Passport, Driving License, and Voter's ID Card are examples of proof of residence.
  • Aadhaar Card, PAN Card, Passport, Birth Certificate, Driving License, and Voter's ID Card are examples of proof of age.
  • Evidence of Educational Qualification.
  • Proof of Income: Employer-issued salary certificate (indicating gross and net salary)/Income Tax Return.
  • Statement of the salaried account for the previous 6 months.

PNB self-employed home loan documents:

  • Completed home loan application form with a photograph.
  • Aadhaar Card, PAN Card, Passport, Driving License, and Voter's ID Card are examples of identity proof.
  • Aadhaar Card, Passport, Driving License, and Voter's ID Card are examples of proof of residence.
  • Aadhaar Card, PAN Card, Passport, Birth Certificate, Driving License, and Voter's ID Card are examples of proof of age.
  • Evidence of educational qualification.
  • Proof of income for agriculturists: Landholding record and cropping pattern, or any other proof of income.
  • Proof of Income for other self-employed persons: Last 3 years' Income Tax Return or Assessment Order, as well as Income Statement Calculation.
  • Bank statement for the previous 6 months.

Conclusion

The Indian government has always shown a strong desire to encourage citizens to purchase a home. This is why a home loan is tax-deductible under section 80C.

When you buy a house with a home loan, you get tax benefits and other benefits. It also helps to save and not exhaust your deposit or bank balance.

A home loan is one of the most affordable borrowing options, with a low interest rate. Home loans with floating interest rates, unlike other loans, have no prepayment penalty. So there are some benefits to taking out a loan.