Documents Required for a Home Loan: What to Prepare Before You Apply
Getting ready to apply for a housing loan? Along with exploring loan it can be helpful to know the documents required for a Home Loan in advance. Lenders require these documents to verify your identity, assess your financial profile, and ensure the property you intend to purchase meets legal standards.
Keeping all the required documents handy allows you to complete your application faster and with less back-and-forth. In this guide, we provide a checklist of the documents required for home loan approval.
Key Documents Required for Home Loan Application
While requirements may vary based on the lender, here is what you will typically need:
1. Identity and Age Proof
- PAN Card or Form 60 (mandatory)
- Aadhaar Card
- Passport
- Voter ID
- Driving Licence
2. Proof of Income
For Salaried Applicants:
- Latest 3 months’ salary slips
- Form 16 or ITRs for the last 2 years
- Bank statements (past 6 months) showing salary credits
For Self-Employed Applicants:
- ITRs for the past 3 years
- Audited financial statements (Profit & Loss statement and Balance Sheet)
- Business registration proof or trade licence
- 6 months’ bank statements for business transactions
3. Proof of Address
- Aadhaar Card
- Passport
- Utility bills
- Voter ID
- Rent agreement (if applicable)
4. Property Documents
- Sale agreement or title deed
- Property registration receipt
- Approved building plan from the municipal authority
- No Objection Certificates (if applicable)
- Allotment letter (for under-construction properties)
- Property tax receipts
5. Additional Documents (if applicable)
- Passport-size photographs
- Co-applicant’s identity, address, and income proof
- Loan account statements for existing loans
This list is indicative; additional documents may be required during loan processing.
Understanding Housing Loan Eligibility Criteria
Before applying for a home loan, it is a good idea to check whether you meet the housing loan eligibility criteria determined by the lender. It helps lenders evaluate your profile before sanctioning the loan. Usually, the following factors are considered:
- Age: You should generally be between 23 and 67 years of age. The upper age limit is considered the age at the time of loan maturity.
- Employment:
- Salaried applicants: At least 3 years of work experience in a public or private sector or an MNC
- Self-employed applicants: Business vintage of at least 3 years
- Credit Score: A CIBIL score of 750 or above is usually preferred
- Nationality: Indian residents (including salaried NRIs) are eligible
In addition to documentation, using digital tools can also help you plan your repayment. For example, a home loan eligibility calculator can help you estimate how much you can borrow based on your income and monthly obligations. You can also use a home loan EMI calculator to estimate your EMIs and compare loan options.
