Home Loan Guide

Let’s understand the home loan procedure

Fill the application form

• The process of taking a home loan begins with the borrower filling an application form.
• The application form is the most basic document in which you have to provide personal information about yourself like your name, address, phone number occupation, monthly and annual income and education details.
• You must also provide details about the property you wish to purchase, the estimated cost of that property and the down payment you can afford.

Verification of documents

• After you submit your documents, the bank verifies the documents provided by you.

Background check

• Apart from verifying your documents, the bank also conducts an independent background check of the borrower’s credentials. To this effect, the bank may conduct an investigation basis the information supplied by you in the application form including your previous and current residential addresses, your place of employment, credentials of your employer, office contact details etc.

Processing free payment

• After the bank is convinced about your repayment capacity, it begins the housing loan process. As such, you must pay a processing fee which is an amount the bank collects to process your loan application.

The loan approval process

• To ensure that your loan is not rejected you must furnish all the listed documents truthfully. This is also the stage in which the borrower can find out the maximum loan amount as approved by the bank, as well as the interest rate charged according to various tenures.
• The bank communicates these details by sending you an official sanction letter confirming that your loan is approved.

Processing the property documents

• After you receive the official sanction letter approving your loan, you are required to submit the original property documents to the lending bank, which remain in the bank’s custody until the loan is repaid in full.
• The bank verifies the property documents before approving the loan. Bank also sends it’s representative twice to physically visit the property site, once before approval of loan and then after sanction of loan.

Loan disbursal

The final step in the entire housing loan procedure is the loan disbursal stage. This includes the registration of the loan deal i.e. acceptance of Terms and conditions of Sanction by the borrower/s, the signing of the loan agreement/documents and the disbursement of loan as per terms stated in the Sale Agreement, including down-payment by the lender.

Checklist for Home Loan

For Centre and State Government Employees:-

• One coloured Photo of all applicants
• Pan card of all applicants
• Current address proof
• Aadhar card of all applicants
• Salary Slip 3 Months
• Latest 2 Years Form -16-part A and Part B
• Bank Statement 6 Months’ Salary Credit and Loan Emi Debit with stamped by Bank.
• Loan Track Statement with sanction letter (in case of running loan)
• Property Documents

For Defence person:-

• One coloured Photo of all applicants.
• Pan Card of all applicants.
• Serving Certificate with photo (Mention current address and permanent address) and Aadhar card self-attested.
• Salary Slip 3 Months.
• Latest 2 Years Form -16-part A and Part B.
• Bank Statement 6 Months’ Salary Credit and Loan Emi Debit with stamped by Bank.
• Loan Track Statement with sanction letter (in case of running loan).
• Property Documents.

For Private/Corporate Employees:-

• One coloured Photo of all applicants.
• Pan Card of all applicants.
• Current address proof.
• Salary Slip 3 Months.
• Latest Form-16 (2 Years)
• Increment Letter + CTC
• Bank Statement 6 Months’ Salary Credit, Pension credit and Emi debit.
• Loan Track Statement with sanction letter (in case of running loan).
• Property Documents.

For Partnership Firm:-

• One coloured Photo of all applicants.
• Pan Card of all applicants.
• Current address proof.
• Aadhar card of all applicants
• Income tax return with computation audit report with balance sheet profit and loss A/c last 3 years
• Form -26 AS (last 3 years)
• GST certificate
• GST return (last 1 year)
• Bank statements 6 Months current A/c and saving A/c (mention in financial)
• Company profile on letter head
• Photo of office

For Partnership Firm:-

• One coloured Photo of all applicants.
• Pan Card of all applicants.
• Current address proof.
• Aadhar card of all applicants
• Income tax return with computation audit report with balance sheet profit and loss A/c last 3 years
• Form -26 AS (last 3 years)
• GST certificate
• GST return (last 1 year)
• Bank statements 6 Months current A/c and saving A/c (mention in financial)
• Company profile on letter head
• Photo of office

Company Documents

• Pan card of company
• Partnership Deed
• Income Tax Returns with computation, Audit report, balance sheet with all annexure last 3 years
• Loan track last 6 months (in case of running loan)
• Current A/c Statement (last 6 months)
• CC limit last 12 months (if any)

For Proprietorship Firm:-

• One coloured Photo of all applicants
• Pan card of all applicants
• Current address proof
• Aadhar card of all applicants
• Income tax return with computation audit report with balance sheet profit and loss A/c (last 3 years)
• Form -26 AS (last 3 years)
• GST certificate
• GST return (last 1 year)
• Bank statements 6 Months current A/c and saving A/c (mention in financial)
• Company profile on letter head
• Photo of Office