Documents Required for Home Loan: Complete Checklist for Indian Homebuyers

Getting a home loan approved may feel overwhelming, especially for those who are doing it for the first time.

You have found the perfect flat, calculated your EMI and are ready to apply.

However, then comes the paperwork part, which can feel a bit intimidating. 

Many times, loan applications are delayed simply because borrowers do not have the right documents ready. Some may have to wait for weeks or months because of missing papers.  

Here is the good news. If you know exactly what documents required for home loan approval are, you can prepare everything in advance. This will help you get your loan sanctioned quickly. 

This guide will walk you through every document you need, so you’re fully prepared when you visit the bank.

Why Documentation Matters

Your loan documents are like proof of your credibility.

Banks will need to verify three things:

• Who you are
• Whether you can repay the loan
• Whether the property is legally sound

For faster approval, keep your documents organised. While some borrowers get sanctioned within 7-10 days, others may have to wait for weeks due to incomplete paperwork. 

Identity and Address Proof Documents

Every home loan application starts with basic KYC documents.

You’ll need valid identity proof. Any one of these works:

• Aadhaar Card
• PAN Card
• Passport
• Voter ID Card
• Driving License

For address proof, you can submit:

• Aadhaar Card
• Passport
• Recent utility bills (electricity, water, gas) – not older than 3 months
• Rent agreement (if you’re currently renting)
• Ration card
• Bank statements

You must keep both originals and photocopies ready so that banks can verify originals and keep copies for their records.

Income Proof Documents

Income proof documents are crucial as banks need to verify that you earn enough to repay the loan comfortably.

The documents required for home loan approval differ based on whether you’re salaried or self-employed.

For Salaried Individuals:

• Last 6 months’ salary slips
• Last 2-3 years’ Form 16
• Last 6 months’ bank statements showing salary credits
• Employment certificate or offer letter from current employer
• Employee ID card

For Self-Employed Individuals:

• Last 3 years’ Income Tax Returns (ITR) with computation sheets
• Last 3 years’ audited financial statements (Profit & Loss Account and Balance Sheet)
• Last 6-12 months’ bank statements of business account
• Business registration proof (Partnership deed, MOA/AOA, GST certificate)
• Professional qualification certificates (for doctors, CAs, architects, etc.)
• Current client contracts or purchase orders (to show business continuity)

Property-Related Documents

Banks thoroughly verify that the property you are buying is legally clear before releasing funds.

You’ll need these documents required for home loan related to the property:

From the seller/builder:

• Sale deed or Sale Agreement
• Title deed showing clear ownership
• Approved building plan from municipal authorities
• Occupancy Certificate (OC) or Completion Certificate
• Encumbrance Certificate (EC) – proves no legal dues on property
• Property tax receipts for last 3 years
• NOC from housing society or builder
• Allotment letter (for flats)

For under-construction properties:

• Builder-buyer agreement
• RERA registration certificate
• Construction timeline and payment schedule
• Commencement certificate
• Architect’s certificate

If you’re applying for a home loan in Pune, make sure your property has all necessary approvals from Pune Municipal Corporation (PMC) or Pimpri-Chinchwad Municipal Corporation (PCMC), depending on the location.

Additional Financial Documents

Banks may ask for additional documents to assess your overall financial health:

• Existing loan statements (if you have other loans)
• Credit card statements for last 3 months
• Investment proofs (mutual funds, fixed deposits, shares, PPF)
• Life insurance policy documents
• Previous year’s property tax payment receipt
• Co-applicant’s income documents (if applying jointly)

Quick Documents Checklist

Here’s a checklist you can use while preparing:

Personal Documents:

•  PAN Card
•  Aadhaar Card
• Passport-size photographs
• Address proof

Income Documents:

• Salary slips (last 6 months) / ITR (last 3 years)
• Form 16 / Audited financials
•  Bank statements (last 6 months)
• Employment proof

Property Documents:

• Sale agreement
• Title deed
•  Approved building plan
•  Encumbrance certificate
•  Property tax receipts
•  NOC from society/builder

Common Documentation Mistakes to Avoid

Don’t submit expired documents. Check validity dates on all identity proofs and address proofs.

Don’t hide existing loans. Banks will discover them through CIBIL checks anyway. Being upfront builds trust.

Don’t submit illegible copies. Make sure all photocopies are clear and readable.

Don’t forget to sign. Every form and document copy needs your signature where required.

Tips to Speed Up Your Approval

Organize everything beforehand. Create a folder with all documents sorted by category. This saves multiple bank visits.

Get photocopies made in advance. Keep at least 3 sets of all documents.

Verify property documents early. Don’t wait for the bank. Hire a lawyer to check for legal issues first.

Maintain a good credit score. A score above 650 significantly speeds up approval. Check your CIBIL score before applying.

Choose the right lender. Compare requirements from 3-4 banks. Some are stricter, others more flexible.

Apply online first. Most banks allow online applications, which are processed faster than physical applications.

Special Requirements for Different Cities

When applying for a home loan in Pune or other major cities, you must be aware of local requirements.

Stamp duty rates, registration processes, and required local authority approvals vary by states and cities.

For example, Pune properties may need specific approvals from PMC or PCMC. Similarly, Mumbai properties may require approvals from MHADA or MMRDA for certain properties.

You can check with your bank about any city specific documents that may be needed in your location.

The Bottom Line

Home loan approval should not be stressful or time consuming. If you have prepared the right documents in advance, you can sail through the entire approval process in just 10-15 days. 

So, start organising your documents today. Apart from making copies, verify property documents and check your credit score.

The time you invest now in organising your papers will save you weeks of running about later. And soon, you might be holding the keys to your dream home.