Overview
While the format and layout of home loan application forms may vary across banks and financial institutions, the essential information and supporting documents required remain broadly consistent. The application process involves providing comprehensive details of the borrower, and where applicable, the co-applicant and guarantor. Below is a structured overview of the information to be filled in and the documents to be submitted when applying for a home loan.
I. Information Required in the Home Loan Application Form
The following particulars must be provided by the applicant(s):
- Personal Information
- Full name of the borrower, co-applicant (if applicable), and guarantor (if applicable)
- Age of each individual mentioned above
- Present and permanent address of each individual
- Loan Details
- Amount of loan requested
- Proposed margin or borrower’s own contribution towards the purchase or construction of the property
- Desired repayment period in terms of monthly equated installments (EMIs)
- Income and Financial Information
- Source(s) of income: salary, business income, professional fees, etc.
- Net worth of borrower/co-applicant/guarantor, supported by a declaration of assets and liabilities. This includes:
- Movable assets (e.g., life insurance, shares, debentures, term deposits, government securities such as NSC, etc.)
- Immovable assets (e.g., land, residential or commercial property)
- Liabilities and financial obligations
Note: Some banks may require submission of a separate, signed asset and liability statement along with documentary proof.
- Liability Declarations
- Details of loans availed in the name of any firm/company in which the applicant has an interest as proprietor, partner, or director
- Details of any personal guarantees provided on behalf of third parties, including:
- Name of the individual/entity for whom the guarantee is given
- Name of the bank/institution
- Amount committed
- Any overdue amounts
- Declaration
At the end of the form, the applicant must declare that all particulars furnished are true, correct, complete, and updated in all respects.
II. Documents to be Submitted Along with the Application
Applicants are required to submit the following documents to initiate processing of the home loan application:
1. Know Your Customer (KYC) Documents
- Identity Proof (any one of the following):
PAN Card (mandatory for loans above a specified threshold), Passport, Voter ID, Aadhaar Card, Driving License - Address Proof (any one of the following):
Passport, Voter ID, Aadhaar Card, Driving License, Utility Bills (electricity, water, telephone) - Age Proof:
Passport, Birth Certificate, Driving License, or 10th Standard Marksheet
2. Income Proof
- For Salaried Applicants:
- Latest 3 months’ salary slips
- Last 6 months’ bank statements reflecting salary credits
- Form 16 and/or Income Tax Returns (ITRs) for the last 1–2 years
- For Self-Employed Individuals/Professionals:
- ITRs for the last 2–3 years (both personal and business)
- Audited balance sheets and profit & loss statements for the last 2 years
- Bank statements for the past 6–12 months
- Proof of business continuity (e.g., trade license, GST registration, CA certificate)
3. Property-Related Documents
- Sale Deed (executed or draft, as applicable)
- Allotment Letter/Possession Letter (if applicable)
- Approved Building Plan from the local municipal authority
- No Objection Certificate (NOC) from Builder/Society (if required)
- Latest Property Tax Receipts
4. Other Supporting Documents
- Duly completed and signed home loan application form
- Passport-sized photographs of the applicant(s)
- Processing fee cheque(s), including CERSAI charges
- Previous loan statements (if any)
- Assets and liabilities statement (where applicable)
Memorandum of Deposit of Title Deeds (MODT):
In India, a Memorandum of Deposit of Title Deeds (MODT) can be registered in lieu of an equitable mortgage deed under certain conditions, specifically for equitable mortgages related to home loans. It states that they have deposited their property’s title document with the lender out of their free will. The title document deposit takes place in exchange for a loan. This means that instead of creating a formal mortgage deed, the borrower deposits their property’s title documents with the lender and executes an MODT, which is then registered. This method is often used for home loans and is considered a valid way to create a mortgage. The MODT, when properly registered, provides legal validity to the equitable mortgage and protects the interests of both the borrower and the lender. So, lenders make this document mandatory in the paperwork checklist.
Disclaimer:
The information provided above is intended solely for informational and explanatory purposes. It does not constitute financial advice or a solicitation to apply for a loan. The requirements and documentation may vary from bank to bank. Applicants are advised to consult the specific financial institution from which they intend to avail the loan for the most accurate and updated information.
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