Home Loans & Finance
Home Loan Documents Required
Everyone worries about their salary slips. The documents that actually get loans refused are the property ones.
The short answer
Three sets of documents: identity, income, and property.
The first two are routine. The third is where loans actually get refused — a missing occupancy certificate, a B khata, a title with a gap in the chain.
Check the property documents BEFORE you pay a token, not after you have applied.
Identity and KYC
- PAN card — mandatory
- Aadhaar
- Passport / Voter ID / Driving licence — identity and address
- Passport-size photographs
- Proof of current address — a utility bill, or a rent agreement
Income — if you're salaried
- Salary slips — last 3 to 6 months
- Form 16 — last 2 years
- ITR — last 2 to 3 years
- Bank statements — last 6 months, of the salary account
- Employment certificate, or the appointment letter
- Increment letters, if your salary has recently risen — worth volunteering
Income — if you're self-employed
More documents, more scrutiny, and expect a longer process.
- ITR — last 3 years, with the computation of income
- Audited financials — P&L and balance sheet, last 3 years
- Bank statements — last 6 to 12 months, business and personal
- Business proof — registration, GST, professional certificate
- Business continuity proof — that it has been running for 3+ years
- Advance tax challans
Lenders assess a self-employed applicant on declared income — what is in the ITR.
Which creates an uncomfortable tension that a great many Indian business owners discover too late: the aggressive tax planning that minimised your declared income has also minimised your home loan.
If you are planning to buy in two or three years, your ITRs for those years are your loan application. That is worth thinking about now rather than later.
If you're an NRI
- Passport and valid visa
- Overseas address proof
- Employment contract — translated and attested, if not in English
- Overseas salary slips — last 3 to 6 months
- Overseas bank statements — last 6 months
- NRE / NRO account statements in India
- Power of Attorney — in favour of someone in India. Most lenders require this.
- Overseas tax returns, where applicable
The property documents — where it actually matters
| Document | Why they want it |
|---|---|
| Sale deed / agreement for sale | The transaction itself |
| Title deed & mother deed | The chain of ownership |
| Chain of title — 30 years | That no owner is missing |
| Encumbrance Certificate — 30 years | That nothing is charged against it |
| Approved building plan | That the building is legal |
| Commencement certificate | That construction was authorised |
| Occupancy certificate | That it is fit to live in. No OC is a very common refusal. |
| RERA registration | For a registrable project |
| Khata / Patta / 7-12 / RTC | The revenue record — and whether it's an A or B khata |
| Land conversion order | If the land was ever agricultural |
| Property tax receipts | No arrears |
| Society NOC | For a resale flat |
| Builder's NOC | That the builder consents to the mortgage |
What actually gets loans refused
People agonise over their income documents. Loans are far more often refused because of the property:
• B khata (Bengaluru) — most mainstream banks will not lend at all
• No occupancy certificate
• A gap in the chain of title
• Land never converted from agricultural use
• Project not RERA registered, where it should be
• Deviation from the sanctioned plan — an unauthorised floor
• The technical valuation coming in below your price — and then the shortfall is yours
Get the property documents checked BEFORE you pay a token. A perfectly eligible borrower can be refused because of the flat — and by then they have usually paid money they cannot get back.
Home loan rates and the RBI's repo rate move. A page that says 'the rate is X%' is wrong within months, and quietly misleads everyone who reads it afterwards.
So we explain how the mechanism works — which does not change — and leave the number to you.
For the current repo rate, check the RBI's own website. For current home loan rates, check three or four lenders directly. Both take five minutes, and both are more reliable than anything a content site tells you.
Frequently asked questions
What documents are required for a home loan?
Three sets. Identity and KYC — PAN, Aadhaar, address proof. Income — salary slips, Form 16, ITRs and bank statements if salaried; three years of ITRs and audited financials if self-employed. And property documents — the sale deed, title chain, encumbrance certificate, approved plan, occupancy certificate, RERA registration and revenue record.
What documents get home loans refused?
Almost never the salary slips. It is the property: a B khata in Bengaluru (most mainstream banks won't lend at all), no occupancy certificate, a gap in the chain of title, land never converted from agricultural use, a project that isn't RERA registered, or a technical valuation that comes in below your price. Get the property documents checked before you pay a token.
What documents does a self-employed person need?
Three years of ITRs with the computation of income, three years of audited financials, six to twelve months of business and personal bank statements, business registration or GST proof, and evidence the business has been running for three or more years. Expect more scrutiny and a longer process.
Does my ITR affect my home loan as a self-employed person?
Substantially — lenders assess you on declared income. Which creates a tension many business owners discover too late: the aggressive tax planning that minimised your declared income has also minimised your home loan. If you plan to buy in two or three years, your ITRs for those years ARE your loan application.
What documents does an NRI need for a home loan?
Passport and valid visa, overseas address proof, employment contract (attested and translated if needed), overseas salary slips and bank statements, NRE/NRO account statements, overseas tax returns where applicable — and a Power of Attorney in favour of someone in India, which most lenders require.