Home Loan: Income Proof, KYC Documents, Other Papers You need to Apply for a Home Loan - News18

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Last Updated: September 12, 2022, 13:52 IST
New Delhi, India
Applying for home loan? Keep these documents ready
Buying a house requires a large sum of money. And most buyers have to resort to financing options like home loans to turn their dream of owning a home into a reality. To get a loan approved from the bank, the buyer must meet the eligibility criteria and produce the required documents at the time of application. If you also have been exploring financing options to buy a new house, here’s a list of documents you would need at the time of application.
KYC Documents
The first set of documents required for any loan application or other financial activities are the KYC documents. This includes documents verifying your identity (PAN card, Aadhar card, passport, driving license, voter ID card), address (Passbook or Bank Statement, Ration Card, Telephone Bill, Electricity Bill, Employment Letter), and age (Birth Certificate, PAN Card, passport, and driving license)
Income Proof
To get a home or any other type of loan approved, the borrower has to be established his repaying capacity. For this purpose, banks require the borrower to furnish their income proof. The loan applicants are required to submit their salary slips for last three months, bank statements for past six months, Form 16 and filed Income Tax Returns of last two years, increment Letter, Appointment Letter, employer Certificate and employee Identity Card. Individuals who run an independent business are required to submit the registration proof of their organisation, certificate of establishment, audited balance sheet for the past three years along with other documents
Property Documents
Property documents play a very key role in the probability of your home loan’s approval. Before disbursing the loan amount, the banks need to confirm the legality of the property and the authenticity of the deal for it. The banks will also you to submit the following documents while applying for a home loan
– Commencement Certificate
– Registration receipt
-Sanction Letter
-Allotment Letter
-Approved building plan copy
-Payment receipts to the builder
-Society Share Certificate
-Copy of electricity bill
-Society maintenance bill copy
-Society Registration Certificate
-NOC (No Objection Certificate) from society
-Chain contract from former owner
-Registered agreement for sale
-Property Insurance copy
-Occupancy Certificate
The probability of the loan’s approval, rate and tenure of the financing heavily depends on the borrower’s CIBIL scrore. So if you plan to avail a home loan in future, boost your CIBIL score through disciplined financial practices and clearing all dues on time. Do not forget to conduct thorough market research to get the best deal from all the available options.