Which are the Documents required for a Home Loan (2025 Guide)

Buying a house is a dream for most families, and in India, home loans make that dream achievable. However, before you get approval, banks and financial institutions require a detailed set of documents to verify your eligibility, income stability, and property authenticity.

The exact list of documents varies depending on whether you are a salaried professional, self-employed, or an NRI (Non-Resident Indian). It also depends on the type of property—new, resale, or under-construction.

This guide covers:

• ✅ Complete home loan documents checklist
• ✅ Different requirements for salaried, self-employed, and NRI applicants
• ✅ Property-related documents explained
• ✅ Real customer experiences with documentation
• ✅ Bank vs NBFC document requirements comparison
• ✅ FAQs on home loan documents

1. Why Are Documents Important in a Home Loan?

Banks don’t just lend based on your request; they need proof of:

• Identity & Address – To establish applicant details (KYC).
• Income & Stability – To verify repayment capacity.
• Property Legality – To ensure clear ownership and no disputes.
• Creditworthiness – To assess your repayment track record.

Without proper documents, even a person with a high income or strong credit score may face delays or rejection.

2. Home Loan Documents Checklist (By Applicant Type)

A) For Salaried Individuals

1. Identity Proof – PAN Card, Aadhaar, Passport, Voter ID, or Driving License
2. Address Proof – Utility bill, Aadhaar, Passport, or Rent Agreement
3. Income Documents
   • Last 3 months’ salary slips
   • Last 2 years’ Form 16 / Income Tax Returns (ITR)
   • Bank statement of salary account (last 6 months)
4. Employment Proof – Appointment letter / Employment stability certificate
5. Property Documents (if finalized)
6. Loan Track Record – If you have existing loans

💬 Customer Experience – An IT professional from Bangalore shared that his loan got delayed because his employer’s salary structure didn’t match the bank’s template. He had to submit an HR confirmation letter. Lesson: Always check salary format requirements before applying.

B) For Self-Employed Professionals & Non-Professionals

1. Identity & Address Proof – Same as salaried
2. Business Proof – GST Registration, Business License, CA-attested business profile
3. Income Documents
   • Last 3 years ITR with Computation of Income
   • Balance Sheet & Profit & Loss statements (CA certified)
4. Bank Statements – Last 6 months (Current & Savings)
5. Qualification Proof (for doctors, CAs, lawyers, architects)

💬 Customer Experience – A doctor in Chennai mentioned that his home loan was approved faster with HDFC because he had all his medical registration documents ready, while his colleague without proper qualification proof faced repeated queries.

C) For NRIs (Non-Resident Indians)

1. Passport copy with valid Visa
2. Work permit / Employment contract / Deputation letter
3. Last 6 months’ overseas salary slips
4. Overseas bank account statements (salary credit)
5. NRE/NRO account statements (last 6 months)
6. Power of Attorney (POA) in favor of a local relative in India
7. Property documents (if finalized)

💬 Customer Experience – An NRI applicant from Dubai shared that SBI asked for both UAE tax compliance documents and Indian ITR filings. He faced delays until his CA in India prepared all papers. Advice: NRIs should always check country-specific rules before applying.

3. Property-Related Documents Required

When it comes to home loans, property verification is equally important as personal documents.

1. Sale Agreement / Allotment Letter – Legal proof of property purchase
2. Title Deeds / Chain of Ownership – To confirm seller’s ownership
3. Encumbrance Certificate (EC) – To ensure no prior loan or legal disputes
4. Property Tax Receipts – Proof of cleared dues
5. Approved Building Plan – Mandatory for under-construction houses
6. Valuation Certificate – Issued by bank’s empaneled valuer
7. Legal Search Report – Done by bank’s panel advocate

💬 Customer Experience – A Pune-based buyer mentioned that his home loan got stuck for 3 months because the builder delayed handing over the Encumbrance Certificate. Without it, the bank refused to disburse.

4. Comparison – Documents Requirement Across Lenders

👉 Key Insight: NBFCs are more flexible for self-employed people with irregular income, while banks strictly demand ITR and tax compliance.

5. Common Challenges Faced by Customers

• Mismatch in Documents – Address mismatch between Aadhaar and utility bill.
• Property Legal Issues – Missing approvals or disputed land.
• NRI Complications – Extra notarization and embassy attestation required.
• Delay in CA Certification – For self-employed professionals.

💡 Tip: Always keep scanned copies of all documents in PDF for faster online application.

6. Pro Tips to Speed Up Home Loan Approval

1. Maintain a CIBIL score above 750.
2. Clear all small outstanding loans before applying.
3. Apply for a pre-approved loan if the property isn’t finalized yet.
4. Ensure salary is credited to bank account regularly (cash payments reduce eligibility).
5. Get property documents vetted by your own lawyer before submitting.

7. FAQs on Home Loan Documents

 Q1. Can I apply for a home loan without ITR?

👉 Most banks require ITR for at least 2–3 years. However, some NBFCs and housing finance companies may allow loans based on bank statements and salary slips.

 Q2. Is Aadhaar card mandatory for a home loan?

👉 Yes, Aadhaar is one of the key KYC documents for identity and address verification.

 Q3. What if my current address doesn’t match Aadhaar?

👉 Provide utility bills (electricity, gas, landline) or a registered rental agreement as additional proof.

 Q4. Do NRIs need a Power of Attorney (POA)?

👉 Yes, NRIs must grant POA to a trusted relative or representative in India for property and loan-related formalities.

 Q5. Can banks reject a loan even with all documents?

👉 Yes, if property has legal issues, valuation mismatch, or your credit score is low.

8. Conclusion

Applying for a home loan in India involves more than just income proof—banks also assess property legality, repayment capacity, and employment stability. While the document list may look long, most are standard papers you already have.

• Salaried individuals must focus on salary slips, ITR, and bank statements.
• Self-employed professionals need CA-certified balance sheets and tax returns.
• NRIs must provide overseas employment proof, NRE/NRO account details, and POA.

Final Advice: Always compare documentation policies across banks and NBFCs before applying. Customers often report smoother processing with pre-approved loans and when documents are well-organized.