It’s fair to say that constructing or buying a house is a mammoth task. It can be one of the most crucial decisions of your life. Perhaps, one wrong move can cost you your ease.
To assist you in such a crucial time, a home loan can be an ideal companion. It can be something to fall back on.
If we look at the statistics, the interest rates of home loans have drastically fallen in 2020. The average rate of interest was as high as 12% in 2012! Isn’t that great news?
Are you still sceptical? Well here’s a thing! The percentage of Capital gains on real estate properties are much higher compared to the rate of interest.
What is a home loan?
A home loan is the sum of money that you can borrow against collateral to construct or renovate a residential property.
Documents Required For A Home Loan
Like any other loan, a housing loan requires standard eligibility and documents for its authentic verification.
As an applicant, you may fail to secure it if you don’t have the documents required for a home loan. Below is the list of documents you need, to take the initial step towards your dream project.
- For Home Purchase and Home Construction Loan:
- Your age proof (A birth certificate or a mark sheet)
- Proof of your address. Electricity bills are the easiest to obtain. However, people also go for a passport or voter ID card.
- Income certificate. ITR (Income Tax Return) is preferred as it contains the gains and losses if you run a business. If you are a salaried person, a salary slip is the easiest to obtain.
- Adhaar Card or any other identity proof such as PAN card, passport, or voter ID.
- Property documents of your house.
- Documents associated with the existing loan (if applicable).
2. For Home Improvement and Home Extension Loans:
- Birth certificate or any other age proof.
- Utility bills or any other address proof.
- Salary proof, ITR file or income certificate.
- The original declaration form of personal ownership.
- Estimated home improvement reference quote.
3. For NRI home loans:
- Passport Or Visa (photocopy)
- Valid work permit for construction of the house.
- Contract details.
- Overseas residential Proof.
- A document to back your income source. Salary slips of at least the past 3 months are preferred. Also, the income account statement of at least the past 6 months is required.
ITR (Income Tax Return)of the previous year is also required. You may not need the ITR if you are a Merchant Navy Employee.
- GPoA (General Power of attorney)
- Documents backing the authenticity of your property.
So, are you eligible? Grab your documents!
Not sure about your eligibility? Check out for Documents required for home loan.
PNB Housing Finance offers you home loans at attractive rates with flexible repayment options. Hurry! Take the first step towards building your dream house.