Required Documents for Home Loan

Documents Required for Home Loan in India

Having a home of your own is no more a dream, it is possible at the finger tip of each us. Get a home loan to build your dream home. Here is the list of few banks document requirements and other details mentioned for applying for a home loan.

Checklist of Documents Required for Home Loan

  • Identity Proof– Passport/ Driving License/ Voter ID/ PAN
  • Address Proof– License/ Registered Rent Agreement/ Electricity Bill (up to 3 months old), Passport
  • Employment Appointment Letter: Required if the current employment is less than 1-year- old
  • Financial Documents:

          o 3 month salary slip

          o 6 month bank statement

          o 2 year Form 16

List of Common Documents

  • Complete loan application form with one passport size photograph.
  • Photo Identity Proof: Passport/ Driving License/ Voter ID/ PAN
  • Residence Address Proof: License/ Registered Rent Agreement/ Utility Bill
  • Residence Ownership Proof: Sale deed or rental agreement
  • Income Proof: salary slip, bank statement and Form 16
  • Job Continuity Proof: Appointment letter at employment and validation letter from HR
  • Bank Statement: Past 6 months’ document
  • Property Documents: Sale deed, Katha, transfer of ownership
  • Advance Processing Cheque : A cancelled cheque for validation of bank account
  • Investment Proof: LIC, mutual funds, property document etc.
  • Financial Documents:

          a. For Salaried Individual: 3 month salary slip, Form 16 and bank statement

          b. For Self-Employed Individual: IT returns for last 2 years along with computation of income tax for past 2 years certified by a Chartered accountant

          c. For Self-Employed Non- Professionals: IT returns for last 3 years along with computation of income tax for past 2 years certified by a Chartered accountant

Documents Required for Salaried Individual

  • Loan Form: Bank loan application form to be filled with passport size photographs affixed
  • Residential Address– Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport
  • Identity Proof: Passport/ Driving License/ Voter ID/ PAN
  • 3 month pay slip
  • Income Proof Documents
  • 2 years Form 16
  • Copy of Income Tax PAN
  • Bank Statement: 6 months bank statement that shows salary from the employer and any EMI paid for outstanding debit.

Documents Required for Self Employed– Professionals

  • Photo Identity Proof: Passport/ Driving License/ Voter ID/ PAN
  • Residence Address Proof: License/ Registered Rent Agreement/ Utility Bill
  • Office Address Proof: Property Documents, Utility Bill
  • Office Ownership Proof: Property Documents, Utility Bill, Maintenance Bill
  • Business Existence Proof: 3 years old Saral Copy, the Company Registration license, Shop Establishment Act
  • Income Proof: Latest 3 years Income Tax Returns including Computation of Income, Profit & Loss Account, Audit Report, Balance Sheet, etc.,
  • Bank Statement: Past 1 year bank statement
  • 1 passport size color photograph

Why is income proof necessary for a mortgage loan?

When you are looking for a Home Loan you must be looking for lump sum money. Mortgage or property loan is the easiest form of loan that can be a help here. In mortgage loan you need to mortgage one of your assets say land to the lender. You get a lump sum amount of money against the asset you are mortgaging. Now the question is why should one need an income proof to avail such loan?

Mortgage Loans are easy to avail but it is not easy to access in case of dispute. According to the guidelines of mortgage loan if the borrower fails to repay the loan amount then the lender can easily cease the asset that is being mortgaged. The lender put the asset on sale and realise the money. But in case of asset, if we consider it as land, it is not easy to sell it off so quickly and realise the money. Hence the lender checks on borrowers’ income proof so that they can be sure of the EMIs. There is also a possibility of lowering down the property value in future, so it gets risky for the lender in mortgage loan. 

What is a Patta?

If you own a piece of land then Government issues a legal document as a proof of ownership of the land. This piece of document is called Patta. Patta generally issues in the name of the owner of the land. But government issues Patta only for those properties which are in constant use. As for example if your land is unproductive then you can’t get the Patta for it. You will only get the document issued if there is any house or building built on it.

If there are multiple owners for a single plot then a single Patta is being issued for all the owners. But in that case the there must be a division of the property. If there is an undivided land Patta will not get issued.

Is it compulsory for every property owner to have a Patta?

Patta is a legal document and definitely it has immense importance when it comes to property dealing. It is an important ownership record that is required to set up right of ownership for the owner of the particular land under the law. Also holding a Patta will make things much easier, especially the government’s compensation from the plot and such will become much easier for the owner.

Patta, on the other, works like a Will Draft. Those who don’t have any Will Paper before his / her death then the land ownership will be automatically transfer to the next family member if the deceased person held a Patta for the land. There will be a small name transfer and renewal process that one must go through to transfer the name (s) of the Patta holder.

Where can we obtain Patta?

Patta is issued by the administrative authority or Tehsildar of the district. There is a small process of obtaining the Patta. The owner (s) has to submit an application or requisition along with necessary documents and details of the owner. There might be an interview of the owner or verification and inspection of the land and the owner. There is a specific format of the required details that the owner has to follow during the process of obtaining Patta. The authority will enquire and do survey of the land as well. The Patta does not need annual or monthly renewal. The renewal takes place only at the time of name transfer.

Documents Required for Senior Citizens/Pensioners:

  • Photo Identity Proof: Passport/ Driving License/ Voter ID/ PAN
  • Residence Address Proof: License/ Registered Rent Agreement/ Utility Bill
  • 1 passport size color photograph
  • Age Proof: Pan Card or Passport
  • Income Proof: Pension Returns Or Bank Statement

Home Loan Application Form is the first basic step to start the processing of home loan, post validation of all details in the application form the bank with process the loan and will let you know the next steps to make your dream come true.