Checklist of documents for loan

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CA SONIYA AGARWAL (Querist)
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20 December 2013 kindly mail me the checklist of documents bank ask for in different types of loan ,like term loan CC , home loan , personal loan , mortgage loan , vehicle loan etc. what are the requirement in each sort of loan , i need to be confident to tackle or deal with loan client easily . my mail id is soniya0454@gmail.com. kindly also mail me the terms in each sort of loan .
thanks in advance
maid id: soniya0454@gmail.com

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
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20 December 2013 Some Major List of Documents mailed to you..

CA SONIYA AGARWAL

CA SONIYA AGARWAL (Querist)
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20 December 2013 kindly clarify me about margin , drawing power and criteria on which bank sanction cc , is is based upon worcking capital or turnover , for cc what we have to look for is it turnover or working capital. similarly what the criteria of bank for term loan , vehicle loan , home loan , mortgage loan , is itr of 3 years compulsory in each case and what shall be the value of such itr to get loan sanctioned

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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19 July 2024 I'm sorry, but I can't send emails or access personal email addresses. However, I can provide you with a comprehensive checklist of documents typically required by banks for different types of loans. Additionally, I'll clarify the terms you mentioned regarding CC (Cash Credit) limits and loan criteria for various types of loans:

### Checklist of Documents for Different Types of Loans:

#### 1. Home Loan:
- Application form with photograph
- Identity proof (e.g., Aadhar card, Passport, PAN card)
- Address proof (e.g., Utility bills, Aadhar card, Passport)
- Income proof (e.g., Salary slips, Form 16, Income Tax Returns)
- Bank statements for the last 6 months
- Property documents (sale deed, title deed, NOC from builder, etc.)
- Employment details (for salaried individuals)
- Business proof (for self-employed individuals)
- Any other specific documents as required by the bank

#### 2. Personal Loan:
- Application form with photograph
- Identity proof
- Address proof
- Income proof (salary slips, bank statements, ITR)
- Employment details (for salaried individuals)
- Business proof (for self-employed individuals)
- Any other specific documents as required by the bank

#### 3. Vehicle Loan:
- Application form with photograph
- Identity proof
- Address proof
- Income proof (salary slips, bank statements, ITR)
- Employment details (for salaried individuals)
- Business proof (for self-employed individuals)
- Vehicle documents (invoice, registration certificate, insurance)
- Any other specific documents as required by the bank

#### 4. Mortgage Loan:
- Application form with photograph
- Identity proof
- Address proof
- Income proof (salary slips, bank statements, ITR)
- Property documents (sale deed, title deed, NOC from builder, etc.)
- Employment details (for salaried individuals)
- Business proof (for self-employed individuals)
- Any other specific documents as required by the bank

#### 5. Term Loan (Business):
- Application form with photograph
- Identity proof of promoters/partners/directors
- Address proof of promoters/partners/directors
- Business proof (registration certificate, GST registration, etc.)
- Business financial statements (Balance Sheet, Profit & Loss statement)
- Project report (for new projects or expansions)
- Income Tax Returns of the business for the last 3 years
- Bank statements for the last 1-2 years
- Any other specific documents as required by the bank

#### 6. Cash Credit (CC) / Overdraft (OD):
- Application form with photograph
- Identity proof of promoters/partners/directors
- Address proof of promoters/partners/directors
- Business proof (registration certificate, GST registration, etc.)
- Business financial statements (Balance Sheet, Profit & Loss statement)
- Income Tax Returns of the business for the last 3 years
- Bank statements for the last 1-2 years
- Stock statements and debtors/creditors statements
- Any other specific documents as required by the bank

### Terms and Criteria Clarification:

- **Margin:** The amount or percentage that the borrower must contribute towards the total cost of the loan. For example, in a home loan, the margin could be 20%, meaning the borrower needs to fund 20% of the property's value from their own sources.

- **Drawing Power:** In the context of CC/OD facilities, drawing power refers to the maximum amount a borrower can withdraw from their account based on the value of stocks, debtors, or other securities pledged.

- **Criteria for CC:** Banks assess CC limits based on the borrower's turnover, working capital requirements, repayment capacity, and creditworthiness. Turnover is a key factor as it indicates the scale of operations and potential revenue generation.

- **Criteria for Term Loan, Vehicle Loan, Home Loan, Mortgage Loan:** Banks consider various factors including income stability, credit history, loan purpose, collateral value, and the borrower's ability to repay. ITRs (Income Tax Returns) for the past 3 years are typically required to assess income stability and repayment capacity.

### Conclusion:

Understanding these requirements and terms will help you confidently assist clients in preparing their loan applications and navigating through the documentation process. It's advisable to check with specific banks or financial institutions for exact requirements as they may vary slightly. If you have further questions or need more specific information, feel free to ask!