Which Documents are Required for Availing a Home Construction Loan?

For those of you who do not wish to drain your entire savings in purchasing a house, loans are not less than a boon. With home construction loans, you can easily construct a house your way and make your dream come true. Home construction loan, like any other home loan, comes with flexible tenures. One can choose different tenure according to her/his financial comfort and repay it through manageable EMIs.

However, to get your loan application accepted, accurate documentation is imperative. If you have been planning to avail a home construction loan, we suggest you go through a list of documents that you would need to submit during the application process.

Home Construction Loan

If you have a piece of land you want to construct a house on, and want to fund that purchase, a home construction loan can be helpful. With the help of this loan, you can manage all the expenditure related to the construction of your house, be it raw materials or fixtures and fittings. This loan helps you get the kind of house you wish to live in without creating a hole in your pocket. In a home construction loan, the loan amount is disbursed in instalments based on the construction progress.

Documents Required for a Home Construction Loan

You need to submit the following documents for a home construction loan. 

1. Passport size photograph
2. Duly filled application form
3. KYC documents
4. Identity proof –  Any one from the following –

• PAN
• Valid passport
• Voter ID
• Aadhaar card
• Driving licence
• Birth certificate

1. Address proof – Any one of the following

• Valid passport
• Driving licence
• Utility bills – electricity, telephone, etc.
• Aadhaar card
• Voter ID
• Ration card

1. Property documents –

• Agreement for sale
• Stamp duty recipe
• Registration fee payment receipt
• Non-objection certificate from builder
• Allotment letter
• Sale deed
• Proof of ownership of the land
• Documents with estimated construction cost

      You might also be asked to submit details of your existing loans or credit card bills.

1. Income documents –

      If you are self-employed, you would need the following income documents:

• TDS certificate, or certificate of VAT or Service tax return document
• Bank statement or bank passbook for the last six months
• Profit and loss account and balance sheet for the last two years.
• Income tax returns and computation of income for the last two years.
• Business proof – business registration certificate

1. Processing fee cheque
2. Documents required for salaried individuals:

• Salary certificate or salary slips for the last two months
• Bank statement or passbook for the last three months.

If you are a self-employed professional, the lender might also ask you to submit a certificate of qualification such as a practising certificate (for doctors, CA) along with a copy of the bank statement and audited financial accounts.

Submitting all the requisite documents is crucial for the fast approval of your application. However, it is equally important that your documents are accurate and handy. Before you start the process of home construction loan application, collect all the recent documents to make the process smooth.