Documents involved in Home Loan

Agenda

• Pre EMI calculation• List of documents for residence Indian & NRI• APF list Processing Fees Rate of Interest Factors Prime Lending Rate (PLR) or Retail Prime Lending Rate (RPLR)

List of Documents required for loan process Resident Indian List of Documents required to process NRI Home Loan

Application

Objective of this chapter

• This chapter provides you with a list of documents that are required for the processing of home loans by banks.

PRE – EMI Calculation

• Loan amount x Rate of Interest / 12 = Monthly Pre-EMI• Loan amount x Rate of Interest / 365 = Per Day Pre-EMI

Processing Fees

An important thing to note about home loans is the processing fee. Banks charge a processing fee for every home loan application. This fees is non refundable. The processing fees varies from bank to bank and is generally between 0.50% to 1% of the loan amount. This fees is used by the bank to start and maintain the home loan process including completing the various formalities during the entire period.

List Of Documents Required For Loan Process Resident Indian

• Application form duly filled and sign• PF cheque (in favor of ‘Housing Finance Institute’)• Photograph duly signed. (Appl & co.app)• ID Proof (Appl & co.app) Duly signed (Passport or pan card

copy)• Residence proof duly signed Appl & co.app (electricity

bill/telephone bill/passport/letter from employer/org bank statement)

• Latest 3 months salary slips• Latest form 16• Verification of employment form duly filled by employer or

bonafide letter

List Of Documents Required For Loan Process Resident Indian

• Appt letter / Relieving letter of previous employment (if required)

• Latest 6 months original bank statement of salary a/c and saving a/c

• Investment in brief• Statement of all existing loan a/c (if any)• NOTE: Document can vary case to case basis

List of Documents required to process NRI Home Loan Application

• Photograph duly signed.( Applicant & Co-applicant)• ID Proof (Passport) ( Applicant & Co-applicant)• Marriage Certificate.( if Applicable)• 6 Month Bank Statement.(Overseas salary account)• 6 Month bank statement for NRE / NRO Account.• (Processing Fee’s cheque from NRE/NRO Account. • Last 6 months salary slips.• W2 / Income Tax Proof.• Credit Beauro Report. (Applicable to Applicants from US / UK /

Australia)**

List Of Documents Required To Process NRI Home Loan Application

• Loan track record / Outstanding balance letter (if any)• Latest salary enhancement letter• Appointment Letter with annexure• Official & personal Email ID

List Of Documents Required To Process NRI Home Loan Application

• HR Email ID for Employment Verification• Re-leaving letter for previous Employer• Latest Visa copy• Updated C.V.• Cost Break-up sheet of your property.• Own Contribution Proof i.e. copy of source/s from which your

Own Contribution is/will be paid. • (OC is a difference between total cost & loan amount.)• Copy of Overseas Tenancy Agreement• Original POA to be attested by Indian Embassy• Detailed address & contact numbers of Power of Attorney

List Of Documents Required To Process NRI Home Loan Application

• Copy of ID & residence proof for Power of Attorney• (In case where we are clubbing spouse’s income please

provide the same • set of documents as mentioned above.)• ** US Applicants can take their Credit Beauro Report from

myfico.com• ** UK / Singapore / Canada Applicants can take their Credit

Beauro Report from – experian.com• ** Australia Applicants can take their Credit Beauro Report

either from Banker’s or from mycreditfile.co.au

APF Process

• LIST OF DOCUMENTS REQUIRED FOR APF1. Partnership Deed/Memorandum of Articles of Association. 2. Copy of approved plan (Approved layout and building plans).3. Copy of the agreement between land owner/s and the

developers.4. Copy of the Power of Attorney.5. Latest Property Card Extract / 7/12 Extract.6. Latest Title verification Report and a detailed search report.7. Draft copy of Agreement for sale.8. Brochures on the project, if any.9. Copy of the NA permission and receipt for the N.A Taxes paid.10. Legal details duly filled

APF Process

11 Copy of U.L.C Permission.12 Copy of the Commencement Certificate.13 Copy of plinth checking certificate.14 List of bookings with contact telephone numbers.15 Affidavit from developers as per enclosed draft.16 Any other relevant documents.17 Cost sheet Details of payments to Land Owner Profile/ Background of the developer Details of Bank Account of project.

APF Process• HR Email ID for Employment Verification• Re-leaving letter for previous Employer• Latest Visa copy• Updated C.V.• Cost Break-up sheet of your property.• Own Contribution Proof i.e. copy of source/s from which your Own Contribution

is/will be paid. • (OC is a difference between total cost & loan amount.)• Copy of Overseas Tenancy Agreement• Original POA to be attested by Indian Embassy• Detailed address & contact numbers of Power of Attorney• Copy of ID & residence proof for Power of Attorney• (In case where we are clubbing spouse’s income please provide the same • set of documents as mentioned above.)• ** US Applicants can take their Credit Beauro Report from myfico.com• ** UK / Singapore / Canada Applicants can take their Credit Beauro Report

from – experian.com• ** Australia Applicants can take their Credit Beauro Report either from Banker’s

or from mycreditfile.co.au

Summary

•Processing Fees•Rate of Interest Rate Factors•Prime Lending Rate (PLR) or Retail Prime Lending Rate (RPLR)•List of Documents required for loan process Resident Indian•List of Documents required to process NRI Home Loan Application

Assignments

1. Prepare a list of documents that a IT Executive with two years work experience would need to get a home loan.

2. Get a copy of Form 16. What are its contents and its uses.