Documents Required for Home Loans

Documents required for processing of a housing loan vary according to different classes or categories of applicants, such as salaried employee, self-employed, businessman or corporate borrower. Also vary depending upon the source from where you are purchasing a property or if you are constructing a house on your own land.

 Let’s take a look at the important documents required for various categories:

For Salaried Individuals

1	Salary slip/Form 16 A
2	A copy of the first and last pages of the ration card or a copy of PAN/Telephone/Electricity bills as a proof of residence
3	Details of investments (FD certificates, shares, any fixed asset, etc. or any other documents supporting the financial background of the borrower)
4	A photocopy of L.I.C policies with the latest premium payment receipts (if any)
5	Passport size photographs (as applicable)
6	A copy of bank statement for the last six months
7	Age proof
8	Financial details of guarantor, wherever guaranty is required

For Self-employed/Businessmen

1	A brief introduction of business/profession
2	Balance sheet, profit & loss account and statement of income with Income Tax returns for the last 3 years certified by a CA
3	A copy of advance tax payments (if applicable)
4	A copy of Registration Certificate of establishment under the Shops and Establishments Act/Factories Act
5	A copy of Registration Certificate for deduction of Profession Tax (if applicable)
6	Bank statements of current and saving accounts for the last 6 months
7	A copy of Certificate of Practice (if applicable)
8	A copy of any bank loan account (if applicable)
9	A copy of the first and last pages of the ration card or a copy of PAN/Telephone/Electricity bills
10	A copy of L.I.C policy (if applicable)
11	A copy of investments (FD certificates, shares, any other fixed asset)
12	Age proof
13	Financial details of guarantor, wherever guaranty is required
14	Two passport size photographs of the applicant

For Corporate borrowers (i.e. companies, firms, etc.)

1	Memorandum and articles of association.
2	Certificate of incorporation and commencement of business.
3	Brief description of busy activity – existing and proposed .
4	Audited financials for last three financial years.
5	Certified photocopy of Sale Deed/Agreement for Sale
6	Certified photocopy of the site plan of the land and blue prints of the buildings duly approved by corporation/Municipality/Panchayat
7	Original N.O.C under the Provisions of Urban Land Ceiling (U.L.C) Act, if applicable
8	Copy of Order permitting Land Conversion in case of conversion of Agricultural land
9	Non Encumbrance Certificate* for 30 years
10	Copy of the land tax receipt/building tax receipt
11	Copy of the Allotment letter of Housing Board/Builder/Co-op. Society
12	Detailed Cost Estimate/Valuation Report from approved valuer (In case of outright purchase of an existing house/flat)
13	Feasibility report of the project indicating cost of project, means of Financing, promoter contribution to the project as percentage of the total cost.
14	Schedule of implementation of the project.
15	Future projections for the next three years.
16	Details of pending litigation if any, against and by the unit.

If a flat is to be purchased from the builder

1	Original copy of your agreement with the builder
2	7/12 extract* or property register card of the land under construction.
3	Index II extract of your agreement with the builder, if available
4	Copy of ‘non-agricultural use’ permission for the land from the collector, if applicable
5	Search and title report (with the details of documents) for the last 30 years
6	Development agreement between the owner of land and the builder
7	Copy of order under the Urban land Ceiling Act, if applicable
8	Copy of building plans sanctioned by the competent authority
9	Commencement certificate granted by Municipal Corporation/Nagar Palika
10	Building completion certificate (if available)
11	The latest receipts of taxes paid
12	Partnership deed or memorandum of association of the builder firm
13	Details of projects executed by the builder in the past

If the property being purchased is in a co-operative society

1	Original share certificate of the society
2	Allotment letter from the society in your name
3	Copy of the lease deed, if executed
4	Certificate of the registration of the society
5	Copy of the byelaws of the society
6	No objection certificate from the society
7	7/12 extract* or property register card in the society's name
8	Copy of ‘non-agricultural use’ permission for the land from the collector
9	Search and title report (with the details of documents) for the last 30 years
10	Copy of order under the Urban Land Ceiling (U.L.C) Act, if applicable
11	Copy of the building plans sanctioned by the competent authority
12	Commencement certificate granted by Municipal Corporation/Nagar Palika
13	The latest receipts of taxes paid
14	Original agreement to assign / deed of assignment.

  

If construction is to be done on your own land

1	Original sale deed of land and extract of Index II
2	7/12 extract* or property register card in your name
3	Copy of ‘non-agricultural use’ permission for land from the collector, if applicable
4	Search and title report (with the details of documents checked) for the last 30 years
5	Copy of order under Urban Land Ceiling (U.L.C) Act, if applicable
6	Copy of the building plans sanctioned by the competent authority
7	Building permission granted by Municipal Corporation/Nagar Palika
8	The latest receipts of taxes paid
9	Estimate of cost of construction certified by the architect.

*Key Related Terms:

7/12 extract: It is a document, which shows the names of the owners of the property. It contains details such as the Survey numbers, area, date from which the current owner’s names were registered as owners. The 7/12 extract is issued by the Tehsildar or the concerned land authorities.

Non-Encumbrance Certificate: Non-Encumbrance Certificate is issued for the purpose of mortgaging the property for the purpose of seeking loans or for lease.