Owning a home is synonymous with stability in our country. There is a wide range of housing loans available in the market to help you build a home you wish for. One such kind is a home construction loan. There is a certain set of documents required for house construction loanapplication.
But, let’s first answer this question –
What is a home construction loan?
A home construction loan is suitable for those who own or co-own a plot of land and plan to construct a house on it. The application approval of this home loan is different from other options as it takes the cost of the plot into account.
After you meet the home loan eligibilitycriteria, the disbursement of the loan amount will ensue in the form of instalments or a lump sum. You may also utilise this loan for a partially-built home and complete its construction.
Additional Read: Home Construction Loan: Everything You Must Know
Documents required for availing a home construction loan
Some documents must be submitted to the lender for applying for a home construction loan. These depend on the occupation and residence status of the applicant. The home construction loan documents required for salaried, self-employed and Non-Resident Indians (NRIs) are different in some aspects.
Nonetheless, some documents are mutual in all cases.
- Age Proof
- Life insurance policy
- PAN Card
- Birth certificate
- School leaving certificate
- Driving license
- Address proof
- Bank statements
- Property tax receipt
- Utility bill
- Property registration documents
- Voter ID
- Existing loan details – These details must be provided through loan account statements
- Photo identity proof
- Aadhaar Card
- Voter ID
- Driving License
- PAN Card
- Passport-size photographs
- Property related documents
- Duly filled loan application form
Documents required for salaried individuals
In addition to the documents listed above, salaried individuals need to submit the following paperwork.
- Income proof – A photocopy of the salary account bank statements for a period of last six months
- Processing fee cheque – Issued from salary account
- Salary slips – A copy of one of the following:
- Appointment letter
- Certified true copy form 16
- Salary slips for last three months
- Yearly increment letter
Documents required for self-employed individuals
After carefully assessing the home loan interest rates of different lending institutions, self-employed people need to submit the following documents apart from the common ones.
- Income proof
- Bank statements for the last six months of OD/CC facilities
- Operative current account statement for the last six months
- Last three years’ Profit & Loss Projection statement
- Processing fee cheque – Issued from your business account
- Business proof
- Business commencement registration certificate
- Your business profile on the letterhead
- Last two years’ income tax returns
Documents required for NRIs
- Income proof – Overseas salary account details for Indian NRO/NRE account statements for the last six months
- Processing fee cheque – Issued from a business account or salary account depending on the status of the applicant
- Credit report – A credit report of the existing country of residence is compulsory for NRI applicants.
Additional Read: Home Loan vs. Home Construction Loan
Finding a reliable lender can be exhausting. But, fret not as Tata Capital’s home construction loan offerings will help you build your dream abode. With attractive home loan rates and minimal documentation, our housing finance solutions are easy and seamless.
Furthermore, if you want to figure out your potential EMIs before applying, log on to our website and use the home loan EMI calculator today!