The home loan is the most common credit that is available and disbursed all over the country to millions of applicants. Most of the banks require similar documents for providing the home loans which are guided as per directives issued by the Reserve Bank of India. The approval of the loan depends hugely on the readiness of the documents and their correctness. Thus it becomes incumbent on the applicant that the requisite documents are made available at the earliest to facilitate quick processing and approval of the home loan application.
Employment Details: The applicant has to provide the details of his engagement or employment to the bank. This shall include the appointment letter or certificate of tenure of service from the employer along with current designation and expected number years left in service as per age. In case of the employer not being a public sector organization or a reputed private firm, the applicant has to provide a brief summary of the company’s profile which shall include name, nature of business, number of employees and annual turnover etc.
Proof of Income: This is the vital information that determines the repaying capacity of an individual. The documents to be submitted include latest salary slips of the last three months indicating details of income and deductions at source. The income tax returns of the previous three years and the Form – 16 issued by the employers will also have to be submitted as proof of income. In addition the applicant must furnish the statement of bank account for the last 6 months.
Identity Proof: There are various documents that can be submitted as identity proof including passport, driving license, PAN card, employer ID card or Defence ID card. However it is mandatory that the submitted proof of identity must carry the photo of the applicant.
Proof of Age: The most commonly accepted proof of age is the 10th class certificate, however in absence of that the applicant may deposit any of the other identity proof mentioned above that displays his date of birth as recorded by the issuing authority.
Proof of Address: There are various documents which can be submitted as a proof of residence which include certificate from public sector employer, bills of telephone, electricity or water, municipality tax receipts for the property of residence or even the title papers of property if residing in own property. In absence of any of the above the bank authorities will advice on the further course of action in lieu of the required proof of address.
There may be a few additional documents required in certain cases which shall be specified by the bank authorities to the applicant which need to be submitted before the processing of the application can commence. It is in the interest of the applicant that all the required documents are kept ready prior to applying so that the time consumed in collecting these documents is cut down from the actual; processing time of the loan application.