Home Loan Application Checklist

Every document and preparation step you need before walking into a bank — for salaried employees and self-employed applicants.

1 Pre-Application Preparation ▼

Check your CIBIL / credit score (should be 750+ for best rates) Free check at CIBIL.com or via your bank app

Calculate your eligibility: monthly EMI should not exceed 40–50% of net take-home salary

Use the Simplegence Home Loan Eligibility Calculator to estimate your loan amount

Decide loan amount, tenure, and fixed vs floating rate preference

Compare rates across at least 3 lenders (banks, HFCs, NBFCs)

Check if property is in lender's approved project list (for under-construction)

2 KYC Documents ▼

PAN card (mandatory for all applicants)

Aadhaar card (address proof)

Passport-size photographs (6–8 copies)

Address proof: utility bill / rent agreement / passport (if different from Aadhaar)

Age proof: PAN / birth certificate / passport / school leaving certificate

Marriage certificate (if joint loan with spouse)

Co-applicant KYC documents (same set as above if joint loan)

3 Income Documents — Salaried ▼

Last 3 months salary slips (stamped by employer)

Form 16 for last 2 years (Part A + Part B)

Last 3 years ITR with computation sheet and acknowledgement (ITR-V)

Last 6 months bank statements (salary account) — all pages, no manual edits

Appointment/offer letter if employed less than 2 years

Promotion/increment letter (if recent salary hike)

Employment certificate / HR letter on company letterhead

Variable pay / bonus breakdown if applicable

4 Income Documents — Self-Employed ▼

Skip this section if you are a salaried employee.

Last 3 years ITR with profit & loss account and balance sheet (CA-certified)

Last 3 years business account bank statements (all pages)

Business registration certificate / GST registration / shop act licence

Last 6 months current account statements

CA certificate of income if ITR filing is irregular

Partnership deed (if partnership firm)

Memorandum of Association + Articles of Association (if Pvt Ltd company)

5 Property Documents ▼

Agreement for Sale / Sale Deed (registered)

Property title documents — chain of title for last 13–30 years Duration varies by lender

Approved building plan from local municipality / authority

Completion / Occupancy Certificate (for ready-to-move properties)

Allotment letter from builder (for under-construction)

NOC from builder / housing society (for resale properties)

Encumbrance Certificate (EC) — confirms property is free of legal dues

6 Post-Sanction Steps ▼

Loan sanction letter — verify: loan amount, interest rate, EMI, tenure, processing fee

Sign loan agreement only after reading all clauses (pre-payment penalty, reset clause)

Submit post-dated cheques (PDCs) or set up ECS/NACH mandate

Get property insurance (structure insurance — often bundled or required by lender)

Check MODT (Memorandum of Deposit of Title Deed) registration and stamp duty Cost varies by state — typically 0.1–0.5% of loan amount

Frequently Asked Questions

What credit score is needed for a home loan?

Most banks require a CIBIL score of 700+ to approve a home loan. A score of 750+ gives you access to the best interest rates. Below 650, banks either reject the application or charge significantly higher rates. Check your score before applying and fix errors if any — CIBIL allows one free report per year.

Can I get a home loan without Form 16?

Yes, but it's harder. Banks that accept home loans without Form 16 typically require a higher credit score (750+), larger down payment (30–40%), and additional income proof like bank statements for 12+ months and a CA-certified income letter. Self-employed applicants routinely apply without Form 16 using ITRs instead.

What is the maximum home loan I can get?

Banks typically lend 75–90% of the property value (LTV ratio). Maximum EMI is usually capped at 40–50% of net monthly income (FOIR). The lower of these two limits applies. Use the Simplegence Home Loan Eligibility Calculator for a quick estimate.

Fixed or floating interest rate — which is better?

Floating rates are linked to RBI repo rate and move with monetary policy — currently lower than fixed rates but unpredictable over 20 years. Fixed rates offer payment certainty but at a premium (typically 1–2% higher). Most borrowers choose floating given the long tenure of home loans and India's historically declining rate trend.

What are all the upfront costs beyond the down payment?

Budget for: (1) Processing fee — 0.25–1% of loan amount; (2) Stamp duty + registration — 4–8% of property value (varies by state); (3) GST on under-construction property — 5% without ITC; (4) Legal/valuation charges — ₹5,000–15,000; (5) MODT stamp duty — 0.1–0.5% of loan (varies by state). Total upfront cost can be 8–12% of property value on top of down payment.

Frequently Asked Questions

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