How to Get a Home Loan with Minimal Documentation?

    The enormous price hike in the real estate market has prompted many homebuyers to avail a home loan for purchasing a property. With reputed lenders, it’s possible to avail a housing loan through a hassle-free online application process. Simple eligibility criteria, minimal and paperless documentation have further encouraged a great number of homebuyers to apply for a housing loan.

    If you too are looking for a housing loan, you must keep all the necessary documents handy. This will reduce the processing time, and help you avail the loan amount within a short span.

    Some of the important documents required for a home loan are mentioned below:

    Documents Required for Home Loan

    • Passport size photograph
    • Identity proofs- PAN Card/ Aadhaar Card/ Voter ID
    • Residence proof – Passport/ Voter ID/ Driving Licence/ Aadhar Card/ Electricity Bill

    In addition to the above-mentioned documents, you will also have to furnish the income proof as follows:

    For salaried applicants

    • Salary slips for the last three months
    • Form 16 and Income tax returns for the last two years
    • Original six months bank statements
    • Original six months bank statement of any other bank account
    • Details of any existing loan availed along with its track record.
    • Property documents
    • Sanction letter

    For self-employed applicants

    • Bank statement/passbook for at least past 1 year
    • Bank statement of last 1 year of any other bank account. The bank details must contain the account holder’s name, account number, bank name, and branch.
    • Last 3 years profit and loss account and balance sheet certified by a Chartered Accountant.
    • Degree certificate
    • Last 3 years Income Tax Returns, including your Business’s IT returns.
    • In case you have a partnership firm, you will have to provide registered partnership deed.

    Make sure to keep these documents handy before starting your loan application process. Apart from verifying these documents, the lender may also evaluate various aspects such as your credit score, monthly income, job profile, employment history, etc. while determining your home loan eligibility. You can boost the approval chances of your loan application by minimizing your debt-to-income ratio and improving your credit score before beginning the process.

    Once your home loan is approved and the loan amount is disbursed, it should be your prime responsibility to make timely loan repayment. Make sure that you do not delay or default on your EMI payments. You can make use of an online home loan EMI calculator to get an estimate of your monthly instalments. It’s advisable to settle for an affordable EMI, as it will help you repay the loan without straining your finances.  If you have a high repayment capacity, you must consider opting for a higher EMI outgo. This will allow you to close your loan sooner and save on the total interest pay-out. In case of any query while applying for a home loan, you can seek the help of a financial advisor for making a well-informed decision.