Home Loan Documentation For Loan Sanction

Home Loan – Documentation

Each bank has its own list of documents that one must submit at the time of application. The common documents that the banks require at the pre-approval stage would be largely among these—completed home loan application form, residence address proof, passport size photographs, proof of age, and copy of bank account statements for the last six months, or the copy of latest credit card statement and the signature verification from your banker. For salaried employees, last three months’ salary slip or Form 16 are essential.

For those who are self-employed, the income tax return, computation of total income, balance sheet, and profit and loss account certified by a chartered accountant for at least last two years are required. Repayment track record of any other loan is also seen. Property papers like title deeds as asked by banks also need to be furnished.

Some lenders may also require collateral security like the assignment of life insurance policies, pledge of shares, National Savings Certificates, units of mutual funds, bank deposits or other investments.

Apart from the aforesaid documents banks have some hidden criteria while sanctioning loan .The bank might refrain from offering loans to people residing in a particular locality or suburb. On the other hand they might readily provide loans to employees of reputed companies. Usually banks target to reduce the non-performing assets(NPAs) and may refrain from offerings loans to customers with higher probability of default.

The following documents are required along with the loan application:

Documents required for resident Indians

Completed loan application form with one passport size photograph

Proof of individual’s identity (any one of the following)

• Passport
• Photo PAN card
• Defence identity card
• Voter's identity card
• Driving license
• Photo ration card
• Government identity card

Proof of residence (any one of the following)

• Passport
• Ration card
• Telephone (land/mobile) bill
• Electricity bill
• Driving license
• Society outgoing bill
• Voter's identity card
• Life Insurance Policy
  Only Passport can be used as both Proof of individual's identity and Proof of residence.  

Proof of age (any one of the following)

• Passport
• Valid driving license
• Voter's identity card
• Birth certificate
• School leaving certificate
• LIC Policy or Premium receipt clearly indicating the applicant's age
• Letter from the employer stating the age of the employee ^## Applicable only for employees of select Public Limited Companies. Conditions apply.  

Financial documents

Salaried individuals

• Latest salary slip showing statutory deductions AND
• Form 16 (Declaration from the employer giving the details of income and deductions, duly signed by an authorized signatory of the Company) /Latest acknowledged IT returns AND
• Bank statements for the last 3 months  

Self-employed individuals

• Computation of income  and P&L for the last 2 years certified by a C.A./P&L and Balance sheet for the last 2 years certified by a C.A. AND
• Copies of acknowledged IT returns for the last 2 years AND
• Bank statements for the last 6 months  

Documents required for non-resident Indians(NRIs)

Salaried NRI Applicants

• Copy of valid passport showing VISA stamps
• Copy of valid visa / work permit / equivalent document supporting the NRI status of the proposed account holder
• Latest contract copy evidencing Salary / Salary Certificate / Wage Slips
• Overseas Bank A/C for the last 3 months showing salary credits  

Self Employed NRI Applicants

• Trade license or equivalent document
• 6 months overseas bank account statement and NRE/ NRO account
• Computation of income, P&L account and Balance Sheet for last 3 years certified by the C.A. / CPA or any other relevant authority as the case may be (or equivalent company accounts)
• Passport copy with valid visa stamp
• Brief profile of the applicant and business