Purchasing a home in India is everyone’s dream. But saving up and buying a house is expensive. Even the lowest-priced homes can be unaffordable for many people.
And that’s where home loans come in.
If you have a stable income and enough money to meet the down-payment requirements, you can apply for a home loan and expect hassle-free approval. You only need to make sure to have the relevant set of documents for the home loan.
You can find the detailed list of documents required for a home loan on the lender’s website. If you want to buy a home with funding assistance from a lender, you’ll have to meet the housing loan eligibility, and the documents you provide are meant to do that.
Let’s first discuss the housing loan eligibility criteria.
Housing Loan Eligibility Criteria
Home loans are provided to people based on pre-defined eligible criteria that essentially try to establish the identity, address, and income of the applicant. Here are the detailed housing loan eligibility criteria:
- The applicant’s age should be between 21 and 70 years
- The minimum income should be Rs 15,000 a month
- The maximum period of the loan term is 30 years
- A healthy credit score is one of the key eligibility criteria; institutions like PNB Housing offer loans with a credit score of 611
- An income proof has to be given which differs for salaried and self-employed people
Documents Required for Home Loan
Here is a list of typical documents required for a home loan:
Application Form
The applicant must fill out the application form with exact information and sign it. A few passport-sized photographs will be required to be pasted on the application form.
If there is a co-applicant, a separate application form meant to be used by the co-applicant need to be filled and submitted. Having a co-applicant considerably enhances the chance of home loan approval.
Proof of Identity
An ID card as identity proof is needed. It helps the lender accurately identify the person to who the credit is offered. You can select any ID from below:
- PAN Card
- Aadhaar Card
- Passport
- Driving License
- Voter’s ID Card
Proof of Age
Proof of age must be given as it helps the lender determine when an applicant can repay the loan. The tenure of a loan can be up to 30 years, and the maximum age for a home loan can be 70 years.
Any one of the following documents can be used to prove the applicant’s age:
- Birth Certificate
- Aadhaar Card
- PAN Card
- Passport
- Driving License
- Bank Passbook
- 10th Class Marks sheet
Proof of Residence
The lender needs to know where the applicant lives so they can reach out to them in case of a need or send important communications.
The proof of address can be any of the following documents:
- Voter’s ID
- Telephone Bill
- Electricity Bill
- Ration Card
- Bank Passbook
- Insurance Policy Receipt
Proof of Income
Proof of income is, perhaps, the most important document required by the lender. It establishes the applicant’s ability to repay the loan amount along with interest over the loan term.
The documents required as proof of income vary between salaried and self-employed individuals:
Documents Required by Salaried Individuals
- Certified letter to be asked from employer and presented as proof
- Salary receipt of 2 months
- Form 16
- Promotion letter (if you have any)
- The last three years of IT returns
- Employment contract
Documents Required by Self-Employed Individuals
- 26 AS form
- Proof of association of the company/memorandum
- Partnership agreement with the business or entity
- A list of shareholders of the company
Additional Documents
Besides all this, the lender may ask for some more documents, including the following:
- Applicants must have a passport-size photo with them
- Record of 6 months’ bank statements
- Details of the ongoing loan, if any
- A cheque from the home loan provider
In Conclusion:
A home loan is one of the most popular forms of loan, and it can be easily approved if the applicant has a regular income and a good credit score. Besides, some standard documents for a home loan are required. If you submit these papers and the duly-filled application, your lender will process your request quickly.
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