Documents Required for a Home Loan in Delhi

Are you planning to purchase a home in Delhi using easy home loans? If so, then the very first step is to fill out an application followed by documentation submission. Furnishing the correct paperwork is crucial to home loan approval. This guide will let you know all about the documents required for a home loan in Delhi.

List of Documents Needed for a Home Loan in Delhi

While you apply for home loan, you will typically need to furnish the following documents –

  • Age proof – Copy of your Passport, Driving License, Life Insurance Policy, Birth Certificate, PAN Card, and School Leaving Certificate
  • Photo identify proof – Copy of your Voter ID/Passport/Driving License/Aadhaar Card/PAN Card
  • Address proof – Copy of your Utility Bills/Bank Statements/Property Registration Documents/Property Tax Receipt/Voter ID
  • Salary slips – Copy of your Salary A/C and bank statements for the last six months
  • Existing loan details – To be provided through bank statements
  • Processing fee cheque – To be issued from the Salary A/C for salaried individuals and from the Business A/C for self-employed individuals

Why Do You Need to Produce These Documents?

You must be wondering why the need to furnish such a comprehensive set of documents while availing a home loan in Delhi. Well, here are the reasons.

Reason #1 Lenders want to know your repayment capacity

Your repayment capacity has a direct link to whether you prove to be a low-risk or high-risk borrower to your home loan lender. As a housing loan borrower, you may wish to avoid EMI defaults, and your lender wants the same. Therefore, to make things easier for all, they will only sanction your home loan once they are convinced that your monthly income is adequate, and employment status is stable enough for smooth-sailing.

You can also determine your affordability in advance by using an online home loan calculator such as the home loan EMI calculator. You can know your EMIs in advance, and if you do not find the figure suitable enough, the EMI calculator for home loan allows you to adjust the values of principal, home loan interest rate, and tenure to arrive at a more optimal EMI.

Reason #2 Lenders want to know your credit history

Based on your past credit behaviour, lenders can get a reasonable estimate of the kind of borrower they are dealing with – high or low-risk. Depending on your credit history, you will be assigned a score called the CIBIL or credit score. Lenders usually extend low home loan interest rates to those with a high CIBIL score, preferably 750 or above. And those with a poor rating are either offered high home loan rates or altogether denied loan approval.

Reason #3 Lenders want to verify your age

Your nationality and age are of utmost importance to home loan lenders. More so since age is one of the vital home loan eligibility criteria. Lenders extend easy home loans for tenures as long as 30 years, but to avail a longer tenure, you must be in your late 20s or early 30s at most. Eligibility for a long tenure declines as one nears retirement.

However, here it is essential to be mindful of the fact that the longer the home loan tenure, the higher will be the home loan interest outgo.

Are you all set to avail a home loan in Delhi for buying a house? If yes, then check your eligibility using a home loan eligibility calculator and compare interest rates offered by different lenders before you apply for your home loan online or offline. Also, plan out your EMIs well in advance to avoid any defaults in the future.

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