Getting a home loan is quite a tedious process, it’s long, it’s daunting and a lot of documents are involved. A financial institution has to check the lender’s eligibility and credibility for a home loan, and a thorough background check is also involved. In order to avail a loan, the borrower must pass the CIBIL score test first and only then the other parameters follow. Scrutinizing every element of home loan is paramount as it is a major loan and a lot of money is involved. Here is a standard list of documents that every financial institution demands:
What documents are needed for home loan?
Know your customer documents are the basic details of the borrower, like their name, address, etc. For the KYC documents, one can submit:
- PAN card
- Address proof – Passport, Voter ID, and Copy of rent agreement
- Passport sized photograph
Banks/ Non-Banking Financial Companies (NBFCs) thoroughly analyse the income and finance history to evaluate lender’s loan eligibility. It is important that there is in flow of income. The income should reflect on the lender’s bank account only after assessing the monthly income, borrowers approve loans. To show the regular income an individual can furnish the following documents:
- Form 16 (both Part A & Part B) and IT Returns of last two years
- Salary slips of last three months
- Bank account statement of last six months
- Employee ID card
- Employer Certificate/ Appointment Letter/ Increment Letter (as applicable)
Lenders not only conduct a background check of the borrower but they also do a check on the property before approving the home loan. It is prudent that the construction of the house is done under legal grounds and has all the permissions in place. The property documents stay with the bank/NBFCs as security which explains the intense scrutiny. If the borrower defaults the loan or fails to repay, the property ownership goes to the lender and they auction it to retrieve lost money. The documents that require to stay with lenders are:
- Registered Agreement for Sale
- Commencement Certificate
- Index II
- Approved Building Plan copy
- Registration Receipt
- Payment receipts to the builder
- Sanction letter
- Occupancy Certificate
- Chain agreement from the previous owner
- Society maintenance bill copy
- Society Share certificate
- Society Registration certificate
- Possession letter / Allotment letter
- Electricity Bill Copy
- NOC from Society
- Property Insurance copy
The list is pretty much what any lender would require. It is always better to be prepared than to be thrown in situations where the paper work gets difficult to manage. Maintain all the documents, share it with the lender even if it is of the least importance. Thus, making the process less unnerving. With all your documents in place, the loan application process is sure to be smooth, as promised by Finserv MARKETS.
With Finserv MARKETS, applying for a Bajaj Finserv Home Loan is easy, quick and completely hassle-free. What’s more? Your home loan comes with a plethora of features and benefits that you can avail right from the comfort of your home. So why wait? Head over to Finserv MARKETS and apply for home loan with us, today!
You should also read about ways to read about ways to reduce home loan.
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