Documents Needed to Obtain a Housing Loan

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By Rajkamal Rao  

Much like in the west, Indian banks need two sets of documents to approve home loan applications - documents to verify the legitimacy of the property; and documents to verify the qualifications of the borrower.  The loan qualification process is a lot more stringent than in the west (especially compared to the loose years that existed in the US in the early 2000's leading to the financial crisis).

Clearly, not all documents are needed in every situation.  Check with your bank for specific document requirements but the following is a good check list.

Property Documents
(Courtesty: SBI)

1. Letter of Allotment/Agreement to Sell/Construction Agreement/Sale Deed/Original Share Certificate issued by Housing Society.
2. Copy of Approved Plan and Permission for Construction (when applicable).
3. Original No Objection Certificate (NOC) from Housing Society or Builder.
4. Property Tax Receipt.
5. Property Possession Certificate.
6. Original receipts of advance payments towards purchase of flat/house.
7. Estimate from a Registered Architect (for new house)/Valuation Report from the bank's valuers (for ready built/second sale property).
8. Search Report/Non-Encumberance Certificate for the last 15 years (or as needed by the State Government).

Documents for NRIs
(Courtesty: SBI)

1. Copy of Passport - including page containing stamps of visas.
2. Copy of valid Work Permit/Employment Contract/Appointment Letter in foreign country.
3. Proof of current overseas residence.
4. Copy of Identity Card issued by current employer.
5. Details of previous employment (if any).
6. Latest wage/salary statement.
7. Latest tax returns.
8. Statement of overseas bank account for the last six months.
9. Proof of income in case of small business owners/self employed individuals
10. If you are in the merchant navy, copy of Continuous Discharge Certificate (CDC)
11. Power of Attorney (when applicable) in bank-mandated format that is notarized by the Indian Embassy/Consulate.