Document required for home loan in India- A Complete Guide

Getting a home loan in India is both a sensible yet exhausting decision, finding the right vendor like India Shelter is very important, so is figuring out the right loan for you, but even after doing all the research the most tedious part of the process comes knocking at your door.

Documentation is a very difficult process but knowing which ones you need and the reasoning behind it might help us get the job done. Documents required for home loan are mostly just documents you have in your house, they are essential documents any Indian national with a job or business usually has. Easiest way to assemble them all together is to make a document checklist for home loan and tick off the home loan document in India you have.

While getting a home loan in India has become a less time consuming process when compared to earlier years, the reasons can be many fold, increased employment, increased desire for a house, increased education, etc. In the same fold the documents which might have been more difficult to acquire in the past are now a task anyone should be able to accomplish. Documents required for home loan can be divided into 3 major categories -

•      Identity proof

•      Income proof

•      Property proof

All these are categories for home loan documents in India and we will further divide them into a document checklist for home loan here. Except for the specific home loan documents in India, there will also be a requirement of signed application forms and passport pictures. These two documents along with some others are necessary documents required for a home loan along with a PAN card which is another necessary home loan document in India. All the other identity proof documents required for home loan are optional, in the sense you can use any one of them but all of them are good to have. The wider range of documents required for home loan in India will be provided below in the document checklist for home loan.

Identity proof

•      PAN card

•      Aadhaar card

•      Voter ID

•      Passport

•      Driving License

•      Utility bills (electricity, water, telephone)

Income proof

The income documents required for a home loan can be divided into two parts for someone who is self-employed and for someone who draws a salary. For both types of buyers the home loan documents in India are going to be different.

Salaried	Self-Employed
Salary slip/ Bank Statement/ Form 16	IT return/ Financial Statement of past 3 years
Salary Certificate	Informal income documents
Employment certificate	Proof of business existence

 

Property documents

The essential home loan documents required for home loan are as given below-

•      Title deed of the property.

•      Proof of no encumbrances on the property.

With this we can easily wrap up the document checklist for home loan. It covers all the documents required for home loan you can check it on here. Property documents are important home loan documents in India and you need to show the proper documents for an easy home loan. Property documents required for home loan are necessary for multiple reasons, the most important of them being avoiding fraud and disputes once the money has been disbursed hence home loan documents in India usually comprise a strict check, and property proof is a part of the document checklist for home loan.

After making sure you have ticked off all the points in the document checklist for home loan there is a chance for the loan to be rejected, yes even though you have most of the documents required for home loan. Home loan documents in India are not the only hurdle to your loan application, we should know the most common rejection reasons of home loans, and they are as follows-

•      One of the most common reasons for home loan rejection is a low CIBIL score, it is usually caused by non payment of some emi in the past. Even after collecting all the documents required for home loan, you might still be rejected because of your CIBIL score.

•      Your age can be another reason for rejection. Usually ages between 20-70 are preferred if you are older than 60, long term loans might be rejected.

•      High debt to income ratio can be another reason for rejection, if your emi becomes more than 50 % of your monthly income then usually the loan will be rejected.

•      Inconsistent employment history is another reason, if you can’t keep a job or keep changing your job then your loan might be rejected even though you have all the documents required for a home loan.

•      Issues with property valuation may lead to rejection of loan. Or any other type of issues with ownership, partnership, legal or any type of title issues may also lead to rejection.

•      Independent assessment of family debt may raise some issues and that can result in rejection.

•      Home loans might get rejected if you do not get necessary permissions or certificates from local authorities and societies.

•      Hiding details like not linking documents not present, pending legal cases, loan pending, outstanding dues may result in rejection of loan when found out.

•      Problems with the documents or incomplete documentation may cause rejection.

 

Considering all the rejections claims, one of the most prominent ones while being the easiest to remedy is documentation, required documents for a home loan is a limited and exhaustive list of necessary documents for home loan in India which are standard in almost all the lending firms weather they are banks or NBFC’s, so everyone should make a document checklist for home loan and complete the work right after applying or even before applying for a loan and one that task is completed they should apply to a firm which provides loans with minimal documentation for home loan in India and can be trusted to provide and easy loan even if you don’t have every single document in the document checklist for home loan and only have necessary documents, India Shelter is one such company that allows for easy home loans and to check your eligibility you can go here. If you want easy home loans with minimal documentation and help along the way you should apply for a loan with India Shelter.

Frequently Asked Questions

•      Which documents are mandatory for availing a home loan?

- PAN card is mandatory, every identity proof while necessary is not mandatory the documents required for home loan vary from the institution which gives the loan

•      Can home loans be pre-approved?

-Yes such options are available.

•      Can I get a home loan without any documents?

-It is not possible to get a home loan without any documents, the lender needs to know your identity, place of residence, source of income and your history. While loans with minimal documentation is possible most lenders need to know certain information before the loan is disbursed.

•      Which are the documents required for home loan for a self employed person?

-Self employed people require different documentation for income proof other than that everything is common. An example of document checklist for home loan concerning a self employed person looks like this:

 

Identity proof	PAN card	Aadhar	Utility bills
Income proof	Tax Returns(3 years)	Proof of business	Challans for advanced IT Payments
Property proof	Property deed/ ownership documents	No contest documents	Property valuation documents