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Housing Loan made easy (All about bank loan requirements)

Congratulations!! If you have been able to finally choose a house which suits your requirement. We understand, how painful is to choose the house from various options in the market & if you have already gone through it, Kudos! . Now as a next step, you might be wondering, what it is like to take a Housing loan on the property in India, what documents are required, what is the process & how much time, it may take to buy a house. If you are wondering about all these points, do not worry, you are at the right place to get glimpse of Bank Loan process in most of the banks in India.

List of documents required by the bank based on the type of profile (Employment):

Salaried:

  • 3 Months payslips
  • 1 Year form 16
  • 6 Months bank statement
  • Offer letter from current company
  • Relieving letter from the previous company
  • Official email id of the current company
  • KYC documents i.e PAN Card, Aadhar Card, Address Proof, Signature proof, Passport for IT professionals
  • Set of legal documents i.e sale deed, link deeds, original documents verification, seller KYC & bank account details

Self-employed (Business)

  • 3 Year Income tax returns- B/s, Profit and loss account, schedules, Audit report
  • Business registration proofs
  • 1 Year bank statement from the current account
  • GST registration certificate, TDS certificate
    Company profile on letterhead
  • Membership number for professionals i.e CA, lawyers, CS
  • KYC documents i.e PAN Card, Aadhar Card, Address Proof, Signature proof, Passport for IT professionals
  • Set of legal documents i.e sale deed, link deeds, original documents verification, seller KYC & bank account details

The process followed by banks with approx. number of days for processing:

  • Submission of documents to the bank – Day 1
  • Verification of documents by banks – Day 2 or 3
  • Verification of residence and office address – Day 4-5
  • Calculation of eligibility & verification of CIBIL report – Day 4-5
  • Personal meet or telephonic call with the applicant to the loan – Day 6-7
  • Additional documents requirement, if any – Day 7-8
  • Sending case for approval – Day 9-10
  • Receiving approval or additional information – Day 12-14.
  • Receiving sanction letter from the banks – Day 15 or 16
  • Collection of disbursement documents – Day 18-20
  • Verification of disbursement related documents – Day 21-23
  • Disbursement of loan & preparation of cheque – 24-25 Days
  • Registration of the property in buyers name & handing over of cheque to the seller or builder – 28-30 days

Note:

1. Above dates mention is tentative date & changes from bank to bank, however, this is typically what a bank takes to process your entire loan application and disbursement. This can be delayed if a loan application is stuck at any stage mentioned above and application is put on hold. This process can be complex and it is advised to seek the help of a professional company like PropAmigo (www.propamigo.com) for all your investment and loan requirements.

2. We do not recommend anyone to take any financial decision solely on the basis of this article. This article is only for educational purpose.

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