Remember in school how you had to pack your bag as per the routine of the day every day? Discipline is an important aspect in every walk of life and at every age – whether you are a student or a professional, a kid or a grown-up individual. Therefore, if you have made up your mind to buy a new house, and are planning to take a home loan for the same, it always makes sense to first get all your documents in place. The absence of the required documents may lead to rejection of your home loan application at the last minute, so it is better to be safe than sorry. Don’t you think?
Luckily though, there are some banks and financial institutions such as Tata Capital, which call for minimum documentation when disbursing for a loan. It makes life easier, but then you must adhere to the rules and submit all the documents that they ask for, even if it’s very less. Do not be complacent in this respect, go by the book because home loans are a big decision of your life, and it shouldn’t be done in a hurry without careful and meticulous planning.
In institutions such as Tata Capital, you can apply for a home loan online with a single click. But, it always makes sense to do some homework. So, before applying for the home loan, read up online about your home loan eligibility, and the various documents that you might need for your home loan application to be processed smoothly without delay. First assess, if you are even eligible for the home loan.
Home loan eligibility calls for you to be above 24 years of age at the time of borrowing the home loan. Your age can, however, not exceed 65 years. Furthermore, you have to either be a salaried employee, preferably in a reputed and trustworthy company. You could even be a self-employed professional or non-professional or a businessman. Overall, your income should be enough so that you can pay off the home loan.
Your next step is to start gathering all the important documents needed for your home loan approval. Tata Capital asks for documents that are easily available, so it will not break your back to arrange for these documents. Let’s take a quick look at the documents that are required for a home loan:
The standard documentation required for a home loan in institutions such as Tata Capital would include:
- Application form duly filled and signed: You can download the application form for a home loan online, and fill it up. Make sure there are no spelling mistakes in crucial information that you provide as your home loan is eventually going to be processed on the basis of the information that you provide. If you give any false or erroneous information, it will backfire at the end, and your home loan application might be rejected after the bank or financial institution does its due diligence.
- Photograph: Provide a recent photograph, not a 10-year-old one from the archives.
- Identity proof: Identity proof can be your PAN card or Aadhaar Card or voter ID card.
- Proof of residence: Residence proof can be your passport, driving licence, or Aadhaar Card.
- Latest Salary Slip: Download at least your last three months’ salary slips from your office Intranet service, or ask for your latest salary slips from your HR manager if you are not already provided with one.
- Bank statement for the last six months: For processing your home loan application, you will need your bank statement for the last six months. You can either download it online through net banking, or visit your nearest bank branch, and request for the same.
- Income Tax returns / Form 16 for three years: When an applicant applies for a home loan, it is assumed that he or she is a law-abiding citizen, and has been filing his or her income tax returns on time every year. For your home loan application to be approved, you need to submit your last three years’ Form 16.
- Education Proof: Education certificates would include all your certificates right from tenth standard mark sheet to graduation and post-graduation (if done) mark sheet. Make photocopies of all your mark sheets.
In case you are self-employed, other than the documents listed above, you would need to furnish the following documents, too:
- Business Existence Document: You have to submit proof that your business actually exists. It could be the company registration document that is a written statement from the government confirming that the company legally exists.
- P/L Statement for three years: When processing the home loan application from a self-employed person, the bank or financial institution assumes that the individual maintains a book of records citing various transactions, income and expenses. Hence, for your home loan application to be processed, you need to submit copies of your business’ last three years’ profit and loss statement.
- Balance Sheet for three years: Assuming you maintain your book of financial records, you will also have to submit a balance sheet showing your assets and liabilities.
- Business: business profile is an overview of your business and your business plan. It helps the lenders understand what you are exactly doing, and where you are headed.
If you have all these documents in place, your home loan will be processed in very less time, and soon enough you can start living in your own house. It takes a little effort to fulfil dreams but once done, there is only happiness ahead.
