Every time you apply for a loan, you must submit some documents. The documents prove that you are a citizen of India and have a decent income to repay the loan principal and interest. The documents you submit for a loan determine the interest rate, eligibility, loan amount, and approval.
This article enlists the top documents required to be submitted by salaried and self-employed professionals and NRIs to avail of a housing loan.
Documents Required For Housing Loan – Salaried Professionals
Here is the list of documents a salaried professional needs to submit for availing of a housing loan:
- Identity Proof – PAN card, Aadhar card, driving license, voter identity card, passport any identity card issued by a public authority/ institution are some examples of identity proof
- Address Proof – Aadhar card, driving license, passport, any identity card issued by a public authority/ institution are some examples of address proof.
- Age Proof – You can submit your PAN Card, Passport, or birth certificate to prove your age.
- Income Proof – You need to submit your appointment letter, joining letter, and salary slips (3 months).
- Bank Statement – You have to submit a six-month bank statement of your salary account. If you do not have a salary account, submit the bank statement of the account in which your salary gets credited every month.
- Form-16 or Income Tax Returns – If you have filed income tax returns in any of the preceding two years, you have to submit the ITR proof.
- Property Papers – Since a home loan is a collateral loan, you need to submit the original copies of all property papers required by the lender. This may include the sale agreement, title deed, allotment letter, buyer’s agreement, and payment receipt. Therefore, it is wise to check the list of documents required for a housing loan with the lender before submitting your loan application.
- Cheque – Lenders generally charge a downpayment amount of 10% of the property value for processing the loan application.
- Photograph – You may need to submit up to three copies of the latest passport-size photograph.
Documents Required For Housing Loan – Self-Employed Professionals
Here is the list of documents a self-employed professional needs to submit for availing of a housing loan:
- The borrower’s identity, address, age proof, property documents, and cheque and photograph as listed above
- The Address Proof of Business – You can submit any document like Establishment Certificate, Trade License, SSI Registration, Partnership Deed (for firms) / Memorandum of Association (MOA) for companies, Factory Registration Certificate, and the like
- Income Tax Returns – Income tax file of the borrower and the business for the preceding two financial years
- Business Income Proof – Profit & loss statement and balance sheet serve as the business income proof. (audited and certified by a Chartered Accountant)
- Bank Statement – Submit a six-month bank account statement of the current account and the borrower’s savings account
Documents Required For Housing Loan – Non-Resident Indians (NRIs)
Here is the list of documents an NRI needs to submit for availing of a housing loan:
- The borrower’s identity, address, age proof, property documents, proof of income, cheque, and photograph as listed above
- Bank Account Statement – Six-months’ bank account statement of the borrower’s foreign bank account and NRE/ NRO account
- Work Permit – You will also need to submit your work permit and copies of your passport
Conclusion
A housing loan offers unparalleled convenience when your dream is noble. Compare the top lenders in India before selecting the financial institution. Housing finance companies generally provide the best interest rates to eligible borrowers.