Which documents are required to be submitted to the bank for taking a house loan?

o 3 month salary slip

o 6 month bank statement

o 2 year Form 16Documents Required for Home Loan Balance Transfer

There are many reasons why people transfer their home loan from one financial institute to another. Most prominent reason is lower interest rate which saves cost of borrowing. You must identify the objective of transferring the loan before actually doing it. The process of home loan balance transfer is not much different than applying for the home loan. That is the reason why documentation part is very important for transferring the home loan from one financial institute to another. The process not just includes the documentation but also the validation of documents. The documents are r validated by the bank or NBFC that you apply to. One has to accept that the reliability of a person for repayment is decided from the documents that the person has to offer. The documents of the applicant will describe if he/she will able to repay the loan amount or not. The prerequisite key documents for home loan transfers are the following:

• Passport-size photographs
• Filled application form for loan transfer (of the bank / NBFC)
• Latest three months' Salary Slips indicating break up of Gross salary that is the Basic Pay, House rent and Net Salary after deductions, if any.
• Six months' bank statement, reflecting salary credits updated within 15 days before the loan application.
• Identity Proof (Any One): Pan Card, Passport/ Driving License / Voter's ID card / employee identity card (as identity proof and signature proof in case of government employees).
• Proof of address: utility bill/ voters ID/ Aadhar card.
• Proof of Age (Any One): 10th or 12th Marks Cards/ birth certificate/ PAN Card / Voters ID Card.
• If you are a self-employed professional or businessperson, then instead of Points (3.) and (4.), you need to provide documents proving the existence of your business (for businesspersons) and academic qualifications (for professionals) ; and financial statements for both.
• Bank statements from wherein the home loan EMIs were deducted amounting to last 12 months of the account.
• The Loan statement copy and complete set of documents relating to the property that is currently in possession of the present home loan lender

Well, banks & financial institutes ask for numerous documents because of following reasons:

• To know the nationality & age of the applicant. Age is important as home loan is long term loan & the person should be at the age of repayment till the loan is over.
• Financial documents clearly state all the records that you have. For example, if the current loan’s EMI was not paid on time it will be traceable from bank statement.
• Credit score is easily verifiable from the list of documents that you are supposed to submit for loan transfer. If your credit score is not as per the requirement of bank of NBFC they will reject the application
• Monthly income can be determined easily from the employment & business documents. It is very important for bank/ financial institute to make sure that you are eligible for the loan & you will able to repay t on time.