List Of Essential Documents Required To Avail A Home Loan In India
An ever-increasing population is causing a proportional increase in the Indian economy. The nation is already among the top five countries with the highest GDP. India ranks right after Germany with China topping the table.
This rapid economic growth has resulted in the financial prosperity and the living standards of the citizens. People are trying to move into better houses or buy a new one with the help of a home loan. The increase in the standard of living has been partly fuelled by the easy availability of funds. documents required for home loan are also nominal which further simplifies the process.
However, the increase in demand for loans has led to a stricter document verification process. Improper or incomplete documents will inevitably lead to rejection of your home loan application. Therefore, it is vital that you produce authentic and complete documents when asked by the lender.
Importance of Document Verification
Document verification helps the lenders to evaluate the authenticity of your identity. It helps them to distinguish you from fraudulent individuals. Borrowers must furnish details which prove their repayment capabilities. Otherwise, there may be chances of the loan becoming a non-performing asset.
Hence, they have a specific list of all documents required for a home loan that you have to submit.
Documents that are Generally asked to Produce for Home Loans:
Property Documents - These are the documents that vouch for the existence and ownership of a property. Such documents include purchase deeds, RTC extracts, mutation extracts, sale agreements, etc. Past deeds and property clearance certificates are necessary in case of second hand properties. These documents help to establish the credibility of the seller as well as the buyer.
Income Proof -. The income proof documents required for home loan include salary slips and income tax returns for salaried individuals. Self-employed individuals have to submit their audited financial reports, trading and P/L accounts, and balance sheet with current account statements. This lets the lender judge whether the concern is in a position to be able to pay the loan back.
Identity Proof - These refer to the various state-mandated identity proofs that every citizen must have. Aadhaar card, PAN card, Voter’s ID card are all identity proofs. They prove your citizenship and also act as a proof of your permanent address. They are necessary for a home loan disbursal process.
Employment Papers - They verify the existence of your place of work. It is generally fulfilled by submission of a copy of your identity card provided by the place of your work.
Residency Documents - This is to verify the location of your residence or the mortgage. These generally include your home electricity bills, post-paid phone bills, etc.
Bank Account Statements - NBFCs ask for your bank account statements of the last 2 months. They may also ask for details of other assets and investments you possess. This will make the home loan disbursement process smoother.
NBFCs like Bajaj Finserv sanction Home Loans against such basic documents mentioned above.
Your home loan will have a high chance of approval if these documents are all produced as and when asked for. Also, abide by all the eligibility criteria to avail the lowest home loan interest rates.
Also it is suggested to check Rera Act or state RERA like MahaRera (only for Maharashtra) rules & guidelines before taking home loan for your real estate project. It will keep away yourself from any uncaused future problems related to govt. authority.