Home Loan Documents Required For Under Construction Property & Apartments - Kotak Bank
  • Personal
  • Business
  • Corporate
  • Private Banking
  • Privy League
  • NRI Services
  • Investors
  • Personal
  • Business
  • Corporate
  • Private Banking
  • Privy League
  • NRI Services
  • Investors
Apply Now

It’s no less than an achievement to have your house built your way. You can design your house by purchasing an under-construction property. With home loans, purchasing an under-construction property is just a matter of a few formalities. However, you must pay attention to the documentation while applying for a home loan.

Documents play a crucial role in your loan approval as they contain all your necessary details. Therefore, you must be aware of the documents required for purchasing an under-construction property housing loan.

The Following Documents You Need to Furnish for an Under Construction Property Home Loan

  • KYC documents (identity proof and address proof). For identity proof, you can submit an Aadhaar card, voter card, PAN, passport and Driving Licence, etc. For address proof, you can submit a Driving license, Voter ID, rent agreement, utility bills like electricity, telephone and water bill, bank passbook and Aadhar card.
  • Income proof like Income Tax Returns
  • No Objection Certificate (NOC) from the builder
  • Document or letter from the builder, which has the latest progress of the construction
  • Stamped and registered agreement with the builder
  • Sales and title deed
  • Khata certificate

The Following Documents Required To Certify And Verify The Property’s Registration

  • Copy agreement with the lender
  • Proof of money contributed for the house
  • Money receipt by sub-registrar
  • Copy of authority letter addressed to the sub-registrar, acknowledged

Things To Consider Before Buying An Under-construction Property

Buying an under-construction property can help you design the house you wish. However, it is crucial to be careful during the purchase and do adequate research. It would be best to consider the following things when making the purchase:

  • Research about the builder, study their track record and check their customer reviews.
  • Inspect the project site and track the construction’s quality and progress
  • Ensure that the carpet area, layout and designs are same as the information provided to you
  • Check the necessary documents and government approvals from the builder
  • Evaluate the future valuation of the property and the anticipated appreciation.
  • If the project has been approved by any bank, you can ask for the verification documents from the lender, as it would make your process easier and quicker.

Moreover, you must also check your Equated Monthly Instalments while availing a home loan to ensure that you can afford the loan. You can use an EMI calculator to do so. Moreover, check your home loan eligibility and opt for an optimal tenure that helps you repay the loan comfortably.

To Sum Up

You would need to mandatorily furnish these documents required for home loan when you avail a housing loan for an under-construction property. Make sure that the documents are updated when you apply for the loan. Having these documents would help you prove your ownership of the property if needed. These documents can also be useful if there is any issue related to government approval, possession date, project completion date, terms and conditions of the purchase, etc.

Latest Comments

Leave a Comment

200 Characters

Read Next

Bank vs. HFC: What Should You Choose for Your Home Loan?


Stamp Duty & Property Registration Charges in Chennai, Tamil Nadu


What is Prime Lending Rate? Meaning, Characteristics in Banking & Importance

Load More

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.