02 December, 2022    

Owning a home is one of the most important financial decisions you and your family will make. For most first-time home buyers, availing of a home loan is the only way they can bring alive their aspirations of home ownership.

Millions of urban Indians now use home loans to buy their dream homes. However, not everyone is familiar with the home loan application process. As a result, many loan applications are denied, or borrowers find themselves in a difficult situation.

If you intend to take a Home Loan, it is critical that you understand everything about it; after all, it is a long-term commitment.

KEY: “Knowledge Empowers You!” to make informed and quick decisions.

As a part of our KEY series, we believe in sharing information from our Wisdom and Subject-Matter Expertise gained while serving more than 500 customers since 2012.

We present you all-in-one-place checklists and pro tips from our wisdom and expertise in one place here.


Home Purchase Loan Land/Plot Loan Construction Loan
Home Extension/Improvement Loan Home Conversion Loan NRI Home Loan

You can avail of a Home Loan in the below-mentioned Scenarios:

  • Buying from Developer directly - Under Construction/Completed Projects
  • Unregistered Property by Current Owner/Resale - Under Construction/Completed Projects
  • Registered Property by Current Owner (NOTE: Registration can be done only on Completed Projects)


Loan Application - Filled and Signed
Latest Form 16 (Part-A, Part-B & Part-12BA) and IT returns
Address Proof — current Residence
ID Proof
PAN and Aadhar Card
Passport Size Color Photographs
Pay Slip — Last 3 months
Employment Continuity Proof - Appointment Letter
Latest Salary CTC, Hike Letter, Promotion Letter, Salary Certificate, Offer letter — as applicable
Bank Statement showing Income — Past 6 months
Reference Contacts
Other Loan Repayment track record — if applicable
Processing fee cheque from Salary account
PRO TIP : In case, there is a co-applicant, the documents like ID proof, Address proof, Passport size colour photo, Relationship proof (Marriage certificate/ Passport/ Driving Licence/ Voter id/ Aadhaar card/ Child birth certificate) would also be required

Along with the above, you would also require the documents related to the Property to Qualify for the loan, here is your handy checklist.

Allotment Letter (Developer to Buyer) Memorandum of Understanding (MOU) Signed by Seller and Buyer
Sale Agreement - Buyer and Developer Assignment Agreement (signed by Seller, Developer and Buyer)
Construction Agreement - Buyer and Developer Endorsement Certificate from Developer
Cost Break-up from Developer Account Statement from Developer
Payment Schedule (Construction linked) from Developer Developer NOC (No Objection Certificate)
Developer NOC (No Objection Certificate) Seller's KYC (PAN, Current Address Proof, and Cancelled Cheque)
Demand Note from the Developer, if applicable Developer's KYC if applicable
NOC from Developer's Bank (if Developer has taken Project Funds from Bank) NOC from Assignor's Loan Bank or Loan Closure Letter
Specific Power of Attorney, if applicable Draft Sale Deed from Developer (If the property is ready for Registration)
Mother Deed/Title Deed from Developer (If the Project is not approved by banks) Occupancy Certificate (OC) if the property is ready to move in
TDS Challan (Form 26QB) and bank statement with paid TDS proof Latest Property Tax Payment Receipt
NOC from Apartment Owner's Association
PRO TIP : Property documents depend upon the stage of construction of the property
Latest Bank Statement reflecting payment to Builder Copy of the first page of the bank statement (to verify address and account number for Demand Draft of Lender Bank)
Latest Demand Note from Builder Copy of cancelled cheque (to verify account# and residential status for DD by lender bank)
Latest Account Statement of your property from Builder Copy of bank statement reflecting payment received from buyer, so far
Indemnity Bond or TDS Challan (1%) Self-attested Copy of PAN card and Current address proof
Builder's KYC e.g., PAN/TAN# if required Seller's Current address will be verified by buyer's bank
Cost Breakup Letter/sheet from Builder Original document verification at bank's Lawyer Office
Payment Schedule to Builder (Construction Linked as per RBI guidelines) Property inspection (multiple times) to assess the market value of the property
Allotment letter from Builder Loan closure letter, if any
Money Margin Receipt (MMR) aka Payment Receipt from Builder Draft Sale Deed (One week before the registration)
Tripartite Agreement (Between Bank, Builder and Buyer) to be signed Latest Encumbrance Certificate (EC) for the last 15 years or from 1st April 2004 (as applicable)
NOC from Builder Cheque for the next Six Month's EMI
Original Sale and Construction Agreement Draft Sale Deed (One week before the registration) ECS (Electronic Clearing Service) - Online/Auto
KYC (PAN, current address proof, and a cancelled cheque) The debit of EMI from your Bank account
6 Undated cheques from Salary Account TDS Challan as per IT and proof of payment (Bank Statement)
Disbursement Form Request Life/Property Insurance, if any
6 Undated dated cheque form Salary A/C
  • Encumbrance Certificate or EC has a validity of one week only.
  • The loan will be disbursed once it is sanctioned and the property is ready for registration.

Our Pro Tips:

  • LOAN DISBURSEMENT & PROPERTY REGISTRATION: Your loan should be disbursed two days before the property registration date. This would result in a smooth registration process with no worries about not receiving the Disbursed Amount on time.
  • DOCUMENT VERIFICATION BY BANKS: Ensure that the bank has verified the property title documents of the Current Owner/Seller at least two days before the Day of Property Registration. This will save you from last-minute hassles and ensure that you receive your Loan Disbursement on time.
  • PROPERTY REGISTRATION ON THE LAST DAY OF THE MONTH: The majority of banks and financial institutions are under tremendous pressure to meet sales targets. Follow this Pro Tip if you want your property registration to go as smoothly as possible.
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