Every individual dream of purchasing or constructing a home inform of a flat or a house of their own and to fulfil such dream he or she needs to avail a home loan from the banks and NBFCs as per the profile of the applicant and legal and technical potentiality of the property. But to apply for a home loan from the schedule banks and NBFCs one must know exactly what are the documents required for home loan in 2024.

In most of the cases an applicant faces rejection while applying for a home loan only because of lack of knowledge on documents required for home loan by the schedule banks and NBFCs based on the profile of the applicant and property. This is truly a job of an expert like NASKAR FINANCIAL SERVICES to guide an individual seeking for a loan particularly for the first time to purchase a ready to move property or an under construction one or for constructing the house of his or her own to arrange the documents required for home loan.

The whole list of documents required for home loan in 2024 can be summarized as

• KYC DOCUMENTS
• INCOME PROOF DOCUMENTS 
• PROPERTY DOCUMENTS

KYC Documents:

KYC documents like

• PAN CARD,
• AADHAAR CARD 
• VOTERS’ ID CARD

are those documents which are required for both applicant and co-applicant to establish the residential status of the applicants and check the credit history reports of the credit track records.

Along with these documents the recent passport size colour photographs and additional relationship proofs like passport, driving license marriage registration certificate, birth certificate of the child are also asked to be submitted by the banks and NBFCs if the general KYC documents provide insufficient data.

For NRI (Non-Resident Indians) applicant some additional documents like work permit from the present employer along with working visa from the embassy and NRE or NRO account bank statements are added in the list of documents required for home loan application.

In present day of technological advancement many lending banks and NBFCs require live photographs which are preferred ahead of the photographs while performing login application process.

In case of digital application method, the authenticity and verification of KYC documents are done by following the process of one-time password (OTP) verified process.

Income Proof Documents:

Income proof documents are categorized based on the profile of the applicant which can be classified mainly into three types such as

1. Salaried person,
2. Self-employed professional 
3. Self-employed non-professionals.

Salaried Persons:

For salaried persons the basic documents required for home loan application in 2024 are listed below:

1. Salary slips for the last three or six months as the case may be, salary account bank statements for the last six months 
2. One year and Form 16 
3. IT returns for the last two years provided by the employer or filed by the applicant are considered as the documents required for home loan as income proof for salaried person.

Self Employed Professional Persons:

In case of self-employed professional persona like doctors, chartered accountants, cost accountants, company secretaries, lawyers etc. apart from KYC documents required for home loan application as mentioned earlier must be accompanied with professional qualification certificates and enrolment details with respective authorities such as

• Medical council
• ICAI
• ICSI
• CMA
• Bar council etc. granting license to pursue such professional activities with enrolment and license numbers.

In addition to these professional proofs the home loan applicant must furnish the income proofs in form of Income Tax Return file for the last three financial years and bank statements.

Self Employed Non-Professional Persons:

• Self-employed non-professional persons are those who does not belong to the above two categories and doing businesses under the sectors like manufacturing, trading and service providing.
• A self-employed non-professional person must provide the valid trade licenses as a proof of the business along with UDYAM AADHAAR REGISTRATION certificate and all other active licenses which are applicable to those particular businesses.  
• For income proof the documents required for home loan application must be accompanied with Income Tax Return files for the last three financial years and last one year bank statements of all the bank accounts.
• If the goods and service tax is applicable then the home loan applicant has to provide the GST Registration Certificate along with the GST returns for the last one year.

• Any non-compliance of the documents as mentioned may lead to rejection of the home loan application from the schedule banks and top tier NBFCs.

But there are some NBFCs which take deviations as per their own internal policies to provide home loans for those who fail to comply with the documents required for home loan application but up to a certain extent. These kinds of deviations lead to the increase in rate of interest due to more risk involvement.

Property Documents required for Home Loan:

Property documents are considered to be the most important documents required for home loan application as these are the documents which finally helps to get the sanctioned home loan amount to disbursed for the registration of the property in favour of the home loan applicant.

Property documents required for the home loan application are generally categorized as per the nature of the property such as ready to move new property, under construction property, resale property, self construction and plot purchase and self construction. Home renovation and extension of an existing property is also categorized under home loan.

Ready to move new Property:

An applicant asking for a home loan for a ready to move new property in an approved project by the leading banks and NBFCs as developed by a renowned developer then the documents required for home loan application becomes very minimal from the part of the applicant.

Only the registered sale agreement and money receipts for the payments of own contributions are required to be submitted to the lender bank or NBFC.

But if the project is not approved by the lender bank or NBFC then the following documents are needed to be submitted for the clearance of the LSR (Legal Scrutiny Report):

1. Title Deed and Chain Deeds of the Land on which the Project been Developed.
2. All Registered power of Attorney and Development Agreements.
3. Sanctioned Building Plan and Completion Certificates from the Applicable Civic Authorities like Municipal Corporation, Municipality, Zilla Parishad etc.
4. All Mutation Certificates with updated Property Tax Receipts as per Applicability. Under Construction Property:

In case of under construction property under an approved project the documents required for home loan application are almost same as that of the in case of ready to move property only the home loan amount gets disbursed as per the demand placed by the developer to the applicant which ultimately gets intimated by the applicant to the lender bank or NBFC.

On the basis of the demands so placed the funds are disbursed from the sanctioned loan amount. Finally, when the final phase of the disbursement gets completed, the borrower is asked to go for the registration of the property and the original registered title deed is mortgaged by the lender bank or NBFC.

If the project is not an approved one from the bank or NBFC where the home loan application been submitted then the applicant has to submit the below mentioned documents required for home loan:

1. Title Deed and Chain Deeds of the Land on which the Project been Developed.
2. All Registered power of Attorney and Development Agreements.
3. Sanctioned Building Plan and Completion Certificates from the Applicable Civic Authorities like Municipal Corporation, Municipality, Zilla Parishad etc.
4. All Mutation Certificates with updated Property Tax Receipts as per Applicability.

Resale Property:

A resale property can be a flat or a house. So, the borrower must submit the following property documents required for home loan application:

1. Title Deed and Chain Deeds of the Flat or House.
2. Title Deed and Chain Deeds of the Land on which the Property is Built.
3. In case of a flat purchased from the developer- all registered power of Attorney and Development Agreements.
4. In case of a flat-sanctioned Building Plan and Completion Certificate from the Applicable Civic Authorities like Municipal Corporation, Municipality, Zilla Parishad etc.
5. In case of an Individual House or Bunglow- Sanctioned Building Plan from the Applicable Civic Authorities Like Municipal Corporation, Municipality, Zilla Parishad etc.
6. All Mutation Certificates with updated Property Tax Receipts as per Applicability.

Self Construction:

Self-construction is defined as building a new house on an ownership plot or land or extension of an existing house with a new portion. For these kinds of proposal, the documents required for home loan application are mentioned as under:

1. Title Deed and Chain Deeds of the Land.
2. Sanctioned Building Plan from the Applicable Civic Authorities like Municipal Corporation, Municipality, Zilla Parishad etc.
3. All Mutation Certificates with Updated Property Tax Receipts as per Applicability.
4. Estimate from the Certified Civil Engineer with the total cost of Building the House or Extension of an Existing House as per the phases of Construction.

Plot Purchase and Self Construction:

In case of plot purchase and self-construction the documents required for home loan application are divided into two parts. First part only includes the documents required for the plot purchase part which are as under:

1. Title Deed and Chain Deeds of the Plot.
2. Sale Agreement
3. All Mutation Certificates with Updated Property Tax Receipts as per Applicability.
4. Estimate from the Certified Civil Engineer with the total cost of Building the House or Extension of an Existing House as per the Phases of Construction

Once the total loan amount gets finalized then only the amount required for the purchasing of the plot gets disbursed subject to the completion of the own contribution part of the borrower to the seller. 

The registered title deed in the name of the applicant once gets mortgaged with the lender bank or NBFC then the documents required for home loan for the second part are asked to be submitted which are as under:

• Sanctioned Building Plan from the Applicable Civic Authorities like Municipal Corporation, Municipality, Zilla Parishad etc.

The construction of the house must be done as per the sanctioned building plan and the whole building to be completed within 18 months from the registration of the plot in the name of the borrower. 

Read more:

• What are the reasons for home loan rejection?
• Plot purchase loan