In the last two-three years, the purchase of homes and apartments has increased by 30%. This has led to more options in home loans from the leading banks for their consumer base. People are looking to acquire their assets, and a house or apartment is the most common choice among the middle-class or average economic class.
Borrowing money from leading banks or financial institutions is the only option to fulfill their dream of having a home. But the application procedure to approve a home loan is not that easy. You must be patient and aware of the whole process for a smooth experience. You can also take help from the loan distributor companies offering suggestions and guidance throughout the year for your better experience.
Documents Required for Approval of the Home Loan
The processing of a loan starts after you apply for the loan. If you don’t have any particular preference for any bank, you can apply through the sites of these loan distributors. Here, you will get the e-approval very soon.
This process ends when you get the papers duly signed and the loan approved by the lenders. In this process, you must submit various documents for presenting your eligibility and identity in multiple stages.
The list of documents you need to offer for loan approval can differ from bank to bank. But some of the common documents that you are supposed to present for the application for the home loan are as follows-
- Every citizen of India needs to provide relevant documents in support of her identity and authenticity. This section includes papers like an Adhaar card, PAN Card, Voter ID, passport, or driving license. Banks use these documents for identity verification and background check.
- You need to prove the address you mentioned in the loan with relevant documents like utility bills of electricity or landline, lease documents or property agreements, and bank account statements. These also get checked before processing the loan further.
- As you are supposed to return the principal amount of the home loan along with the interest, you need to provide your income certificate with the required authorization as proof. A salaried employee can offer their salary slip forthe last six months anda bank statement for the same period. You can also offer Form 16 in support of the existing document.
- Self-employed people also need to provide income-related documents like ITR, balance sheets, and bank statements to assure they can return the amount.
- Business owners also need to provide the business registration certificate and GST certification papers. If you are in a partnership business, provide the partnership deed for verification.
- Above all these, you need to provide the documents related to the property you will buy. The cost estimate and approved copy of the building plan are very important for processing the loan.
Public banks are very strict about documentation and verify the documents at every stage to avoid threats. This is why you will have to wait longer to get approval on an SBI home loan. If you contact the loan distributors, you may get help to accelerate the process and minimize the time for approval.