Home Loan Documentation for Pre-Qualification

It is imperative that you qualify for Home Loan before you begin any step towards buying a House, when you are armed with a Pre-Approved Loan letter and you walk into a Builders office, there is a good amount of chance that you get a better deal than expected. It has been our experience at www.mumbaipropertyexchange.com and we would happily share this with you.

To qualify for a Home Loan, usually the following criteria apply, but this is acceptable to HSBC in India.
 
a. Net Income (Rs.) 150,000
b. Minimum Age (in years) 21
c. Maximum Age (in years) 58 (salaried) or 60 (Public limited/Government Employees) or 65 (self employed)
d. Minimum Loan Amount (Rs.) 500,000
e. Maximum Loan Amount (Rs.) 30,000,000*
f. Maximum Tenor (in years) 25**

Note:

Available to both Residents as well as NRIs. NRI Applicants must have a local co-applicant or a local Power of Attorney holder. All joint owners of the property would necessarily have to be co-applicants and would need to sign all loan documents.

The interest rate on your floating rate Home loan is linked to HSBC's Retail Lending Rate (RLR) and any revision in the RLR would impact your interest rate. The RLR is currently 13.75%.

*Rs. 20,000,000 for Mumbai and New Delhi applicants, Rs. 10,000,000 for applicants from other cities and Rs. 30,000,000 for Premier customers in Mumbai and New Delhi.

**For Resident Indian/NRI professionals, the maximum tenor is 20 years. For self employed resident Indians and NRIs, the maximum tenor is 15 years.

Completed loan application form with one passport size photograph

Proof of individual’s identity (any one of the following)
Passport
Photo PAN card
Defence identity card
Voter's identity card
Driving licence
Photo ration card
Government identity card
Proof of residence (any one of the following)
Passport
Ration card
Telephone (land/mobile) bill
Electricity bill
Driving licence
Society outgoing bill
Voter's identity card
Life Insurance Policy
Only Passport can be used as both Proof of individual's identity and Proof of residence.
 
Proof of age (any one of the following)

Passport
Valid driving licence
Voter's identity card
Birth certificate
School leaving certificate
LIC Policy or Premium receipt clearly indicating the applicant's age
Letter from the employer stating the age of the employee #
Photo ration card

# Applicable only for employees of select Public Limited Companies. Conditions apply.
 

Financial documents

Salaried individuals

Latest salary slip showing statutory deductions AND Form 16 (Declaration from the employer giving the details of income and deductions, duly signed by an authorised signatory of the Company) OR
Latest acknowledged IT returns AND Bank statements for the last 3 months
 
Self-employed individuals / Proprietor

Computation of income for the last 2 years certified by a C.A. OR
P&L and Balance sheet for the last 2 years certified by a C.A. AND
Copies of acknowledged IT returns for the last 2 years AND
Bank statements for the last 6 months
 
Partnerships

Computation of income for the last 2 years certified by a C.A. OR
P&L and balance sheet for the last 2 years certified by a C.A. AND
Copies of acknowledged IT returns for the last 2 years AND
Partnership deed, letter of authority, bank statements for the last 6 months, Proof of office
 
Private Limited Companies

Computation of income for the last 3 years certified by a C.A.
P&L and balance sheet for the last 3 years certified by a C.A.
Copies of acknowledged IT returns for the last 3 years
Memorandum and Articles of Association
Board resolution
Bank statements for the last 6 months
Authority letter from all directors to accompany the application form with photographs of authorised signatories if not specified in the board resolution
Proof of office
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NRIs - You will be required to present the following documents:
Salaried NRI Applicants
Copy of valid passport showing VISA stamps
Copy of valid visa / work permit / equivalent document supporting the NRI status of the proposed account holder
Latest contract copy evidencing Salary / Salary Certificate / Wage Slips
Overseas Bank A/C for the last 3 months showing salary credits
 
Self Employed NRI Applicants

Trade license or equivalent document
6 months overseas bank account statement and NRE/ NRO account
Computation of income, P&L account and Balance Sheet for last 3 years certified by the C.A. / CPA or any other relevant authority as the case may be (or equivalent company accounts)
Passport copy with valid visa stamp
Brief profile of the applicant and business

Usually the home loan approval process takes at least 5-10 working days, but it all depends on the relationship you share with your bank.

The prominent banks in Mumbai who offer home loans aggressively are ICICI Bank, HDFC Bank, HDFC, SBI, HSBC, Standard Chartered, Barclays Bank and ABN AMRO Bank Etc. It is best recommended that you choose your own bank and ideally deal with the one you are dealing with.