Applying for a home loan has become relatively hassle-free thanks to NBFCs and fintech companies. You can now apply for a loan online and get access to funds within a few days. Lenders will also send a representative to your doorstep for document collection.
Providing all necessary documents is essential for loan approval. Your credit score will fall if the lender rejects your application owing to failure to produce any one of them.
Here is the list of all documents required for a home loan:
- Documents of the property you are mortgaging.
- Identity proof – Aadhaar, PAN, Voter ID, Passport, Driving License, etc.
- Address proof – Latest utility (electricity, telephone, post-paid phone, etc.) bill, house rent agreement, municipal or property tax receipt, life insurance policy, any KYC document with the permanent address, etc.
Bank account statement of the previous 6 months.
Salaried customers have to produce Form 16 and or the latest salary slips in addition to the above documents.
Self-employed customers may have to provide income tax returns of at least the previous year along with Balance Sheet and Profit & Loss Account Statement duly audited by a CA.
They also have to produce documents certifying proof of businesses like:
- GST registration certificate
- Partnership deed
- Registrar of Companies certificate
- Shops & Establishment certificate
- SSI Registration certificate
- Trade license
- SEBI Registration certificate
Documents required for a home loan will help you to fulfil the house loan eligibility criteria quickly.
- Age between 23 and 62 years.
- Minimum work experience of 3 years.
- Age between 25 to 70 years.
- Minimum business vintage of 5 years.
Provide all the necessary documents and fulfil the eligibility criteria will help you secure a home loan without any inconvenience.
Features of a Home Loan:
1. High Financing Options
Financial institutions in India have a rapid home loan disbursement process and can offer up to Rs. 3.5 Crore to help you purchase your dream residence without any financial hurdle.
2. Long-term Repayment Options
The tenors on home loans can go up to 20 years giving you ample time for repayment and lower EMIs to make it easy for you to repay.
3. Credit Linked Subsidy Scheme (CLSS)
The Credit Linked Subsidy Scheme (CLSS) under the PMAY scheme enables beneficiaries to enjoy the lowest home loan interest rates in India
This scheme is for first-time borrowers as per specific income groups, viz. –
The interest subsidies provided with CLSS is as follows:
- 6.5% for EWS and LIG families on loans up to Rs. 6 Lakh.
- 4% for MIG I families on loans up to Rs. 9 Lakh.
- 3% for MIG II families on loans up to Rs. 12 Lakh.
4. Balance Transfer and Top-up Facility
You can transfer the remaining balance on your home loan to another lender at a lower rate of interest. Financial institutions also provide a top-up loan when you avail this facility.
5. Personalised Iinsurance Schemes
Insurance schemes available with home loans keep you protected, in case you are not able to repay it.
6. Property Dossier Services
A property dossier is a customised report that provides all the technical and legal aspects for new homeowners.
Other than the above, some lending institutions also don’t charge any fees when you foreclose (repay the loan balance before the tenor ends) or part pre-pay (pay a large portion of the loan to decrease the EMI or tenor) your home loan.
Do make sure to provide all the above documents required for a home loan when applying. Also, compare the rates of interest and check the charges before you do so. Avail home loans which will not only help you purchase your dream house but also let you easily meet the repayment terms over time.