Home Loan Documents


Do you want to buy a house but are wavering, citing a cash crunch or concerns about home loans? Even if we overrule the cash crunch, it is not advisable to exhaust the savings. That is when home loans come as an alternative. Not just for the monetary crisis, it is suitable for various reasons.

However, apprehensions arise due to the critical application inspection and the required documents. Most new home buyers lose their sleep over it. 

This article gives all buyers a must-have home loan documents list to ensure quick approvals. Before that, let’s find out the benefits of buying a home loan to subside any further apprehensions.

Benefits of Buying a Home Loan 

In times of inflation, a home loan conveniently helps buy homes without liquidating savings. Here are some of the benefits of buying a home loan.

  • Tax Deduction Benefits

Section 80C of the Income Tax Act 1961 allows tax deductions on repayments of up to 1 Lakhs. Further, there is a tax deduction of up to 1.5 lakhs on interest repayments. Even the processing fee paid at the time of loan application is treated as interest.

  • Extended Repayment Tenure

The repayment tenures of home loans are vast, even stretching up to 30 years in some cases. It allows scheduling the repayment as per convenience, reducing the load of EMIs. However, borrowers can also choose to repay the loan amount before the loan term with a prepayment option. 

  • Privilege to Choose the Interest Rate

Home loans come with either a fixed or a floating interest rate. A fixed interest rate is set on a fixed sum and remains the same till the repayment finishes. Whereas the floating rate shifts as per the market. One is likely to benefit from the floating rate when there is a fall in ROIs.

  • Improves Credit Score

By paying off the EMIs regularly, one can boost their credit ranking. It will ease the chances of buying a home loan and other required loans in the future.

  • Freedom to Refinance Anytime

In the case of housing finance, one can refinance a loan to another lender for a lower ROI and better customer support.

The Home Loan Documents List For New Home Buyers

Home loan applications undergo rigorous checks. One of the primary reasons that have resulted in rejection is unfinished documentation. It hampers the present and prospects by harming the credit ranking. Therefore, ensure proper documentation by referring to the following list of home loan documents.

  • Know Your Customer (KYC)

KYC documents refer to records confirming an applicant’s identity and address. These records avert any unfair activity like identity theft, money laundering, financial scam etc.

  • Passport Size Photo & ID Proof
    • Passport
    • PAN Card
    • Aadhar Card
    • Voters ID Card
    • Driving Licence
  • Age Proof
  • Passport
  • Passbook
  • PAN Card
  • Birth Certificate
  • 10th Marksheet
  • Driving Licence
  • Address Proof
    • Ration Card
    • Electricity Bill
    • Telephone Bill
    • Employment Letter
    • Passbook & Bank Statement With Address
  • Income Proof

Financing companies analyse incomes and financial accounts to assess eligibility and repayment ability. Therefore, they need authentic records that assure a stable monthly income. The following list of documents qualifies as income proof.Employer Certificate

  • Employee Identity Card
  • Appointment/Increment Letter
  • Latest Salary Slips (preceding 3 months)
  •  Bank Account Statement (past 6 months)
  • Form 16 (Part A & B) & Filed ITR (past 2 years)
  • Property Documents

Applicant’s property records are analysed before approving a home loan application. If a repayment default occurs, the bank reserves the right to auction the applicant’s property and debts. The property papers to collect are as follows.

  • Electricity bill
  • Sanction Letter
  • Property Insurance
  • Registration Receipt
  • Occupancy Certificate
  • Approved Building Plan
  • Society Maintenance Bill
  • Society Share Certificate
  • Commencement Certificate
  • Possession/Allotment Letter
  • Registered Sale Agreement
  • Society Registration Certificate
  • Payment Receipts To The Builder
  • Previous Owner’s Chain Contract
  • Society’s No Objection Certificate


A house is not just an emotional asset but also a financial one. The high housing prices holding you back now will benefit you via capital appreciation. Home loans can help you buy a dream space without straining your pocket. Ensure you have all the documents mentioned in the checklist above while applying.


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