Most loan delays are documentation delays. Files sit not because the applicant is weak but because a page is missing, a name is spelled differently across two documents, or a bank statement stops one month short. Here is what to assemble before you apply.
Common to every loan
- PAN card — mandatory, and the name must match your other documents exactly
- Aadhaar or another accepted identity proof
- Address proof — Aadhaar, passport, utility bill or registered rent agreement
- Passport-size photographs
- Signature verification from your bank, in some cases
If you are salaried
- Last three months of salary slips
- Last six months of bank statements for the salary account, showing credits
- Form 16 for the last one or two years
- Employment certificate or the appointment letter, where tenure is being verified
If you are self-employed or run a business
- Last two to three years of ITRs with the computation of income
- Audited balance sheet and profit and loss statement, where applicable
- Last twelve months of current account statements
- GST returns for the last four quarters
- Business registration — GST certificate, Shop and Establishment licence, partnership deed or certificate of incorporation
- Proof of business continuity going back three years
Additional, for a home loan
- Sale agreement or allotment letter
- Complete chain of title documents for the property
- Approved building plan and commencement certificate
- Occupancy or completion certificate on a ready property
- Latest property tax receipts
- NOC from the society or builder
- RERA registration number for an under-construction project
- Receipts for any payments already made to the seller or builder
Additional, for a loan against property
Everything above, plus the encumbrance certificate, and a valuation report which the lender will commission from its own panel valuer rather than accept from you.
Additional, for a car or two wheeler loan
- Proforma invoice from the dealer
- Valid driving licence
- Insurance quote or policy for the vehicle
- For a used vehicle: RC book, previous insurance, and a no-dues certificate from the seller's financier
Additional, for an education loan
- Admission letter and the institution's fee structure
- Academic records — 10th, 12th, graduation and entrance test scores
- KYC and income documents for the co-applicant
- Collateral documents for loans above ₹7.5 lakh
- Visa and travel details for overseas study
The five problems that actually cause delays
- Name mismatches. "Rakesh Kumar Singh" on PAN and "Rakesh K Singh" on Aadhaar will stall a file. Fix the mismatch before applying, not during.
- Statements that stop short. "Last six months" means up to the most recent completed month. A statement ending two months ago will be returned.
- Unexplained large credits. Any big deposit in your account needs a documented source. Lenders read statements line by line.
- Cash salary. Income that does not reach a bank account is effectively invisible to underwriting.
- Property paperwork gaps. A missing occupancy certificate or an unapproved extension will stop a home loan no matter how strong your profile is.
Before you sign
Ask for the sanction letter and the key facts statement, and read the rate type and reset frequency, the APR including all charges, the prepayment and foreclosure terms, and any bundled insurance. Bundled cover is optional — you are entitled to decline it.
Frequently asked questions
KYC documents, three months of salary slips or two to three years of ITRs, six months of bank statements, Form 16, and the full property set — sale agreement, chain of title, approved plan, occupancy certificate and tax receipts.
For a gold loan, yes — it is secured by the pledged jewellery and needs no income proof or credit score. Almost every other product requires documented income.
Typically three to six months. If the property or disbursal takes longer, the lender will usually revalidate, sometimes at a revised rate.