Priyanka Sambhav
With falling interest rates on home loan banks are experiencing a surge in enquiries. The Home loan interest rates are at a 15 year low; thus, the demand for home loans sees an uptick. The interest rate is in the range of 6.75% to 7%. At present Kotak bank is giving a home loan at the cheapest rate of 6.75% whereas the largest bank SBI a is charging an interest of 6.9%. Till last year (2019) these banks were offering an interest rate in the range of 8% to 9%.
If a home loan is on your mind too here is a list of documents that you should keep ready. The paperwork for the home loan is almost similar across the banks and housing finance companies. However, there could be some documents or specific details that could vary from lender to lender, but also, it could differ based on your loan scheme, purpose, credit profile etc.
1. Home Loan Application Form:
Fill out the home loan application form with giving attention to details, in case you find any trouble then you can ask the lender for the details of specific headings. More or less, the form is easy to understand, and one can fill it without any hassle.
2. Photograph: Remember, the form will only accept passport size photograph, hence go with a recently shot photo.
3. Proof of Identification:
The most crucial document is your identification proof; below is the list one can use:
– PAN Card
– Passport
– Aadhaar Card
– Voter’s ID Card
– Driving License
4. Proof of Age:
You can attach the following document:
– Aadhaar Card
– PAN Card
– Passport
– Birth Certificate
– 10th Class Marksheet
– Bank Passbook
– Driving License
5. Proof of Residence:
Find the list below
– Bank Passbook
– Voter’s ID
– Ration Card
– Utility Bills (electricity bill, telephone bill, water bill, etc.)
– LIC Policy Receipt
– Customers address can be verified through a letter from a recognized public authority
6. Proof of Income :
For Salaried Individuals
– Form 16
– Certified letter from employer
– Pay slip of last 2 months
– IT returns of past 3 years
– Investment proofs, if any (fixed deposits, shares etc.)
Self Employed:
– Income Tax Returns (ITR) of the last 3 years
– Balance Sheet and Profit & Loss Account Statement of the Company/Firm (duly attested by a CA)
– Business License Details (or any other equivalent document)
– The license of Professional Practice (For Doctors, Consultants, etc.)
– Registration Certificate of Establishment (For Shops, Factories & Other Establishments)
– Proof of Business Address
7. Property documents required for a home loan:
– NOC from Society/Builder
– An estimate of the cost of construction of the house
– Registered Sale Deed or Allotment Letter or Stamped Agreement of Sale with the Builder (original document)
– Occupancy Certificate (in case of ready-to-move-in properties)
– Property Tax Receipts
– Advance payment receipt made towards the purchase of flat (original document)
– Building plan (key plan/floor plan in case of purchase of flats)
– Land tax paid receipt and possession certificate as issued by the revenue authority
– Payment receipt or bank account statements showing payments made to the Builder or Seller
A loan approval process is complete only after document verification is successful. Without going through this verification procedure, your application is will not move forward. Finding a lending institution may be easy at this time, but getting all the documents together could turn out to be daunting. I hope this basic list makes your life a little easier.
