You submit a wide variety of documents for a renovation loan, such as business or job details, personal information, trade licences, NID, CV, bank statement, etc.

Actually, depending on your profile, you provide a set of documents for a loan. There are two kinds of profiles, as follows:

• Employed 
• Self-employed

Additionally, you will need to provide your prospective loan service property documents.

Nevertheless, you must contact your prospective financial service to know what documents they need.

Keep reading to learn about the documents borrowers generally need to collect and submit to get a house renovation or reconstruction loan.

Document Required If You Are An Employed

• Salary certificate
• Pay slips
• Bio-Data or CV.
• Income tax return receipt
• Bank Statements
• Business Card
• Ownership documents, Documents of the approved plan, Proof of rental income
• Other loan statements
• E-TIN Certificate 
• NID
• Photo of applicant & co-applicant
• Loan processing fees receipt

Document Required If You Are Self Employed

• Trade License
• Business details
• Income tax assessment 
• Income tax return receipt
• Profit & Loss Account of business
• Business bank statement
• Bio-Data or CV
• Business Card
• NID
• E-TIN Certificate.
• Ownership documents, Documents of the approved plan, Proof of rental income
• Other loan statements
• Photo of applicant & co-applicant
• Loan Processing Fees

Keep in Mind

For employed clients, loan services might ask for 3 months of payslips, and 1 year of Bank statements.

The same applies to self-employed people. But additionally, they have to show the Profit & Loss Account of a specific duration.

And everyone doesn’t have a rental income. If you don’t have any, you won’t have to submit any document as proof of rental income.

Also, if you don’t have any other loan, you don’t have to submit that either.

In case you don’t know the entire loan-taking process, the next section has a general guide for you explaining what to expect throughout the loan applicants to loan approval process.

What Is the Process of Taking a Loan?

Despite there are slight differences between lenders, they all have the process described below.

By going through the instructions provided here, your house renovation loan application procedure will be easy and hassle-free.

Filling Out Loan Application Form

To fill out a loan application form, you give your essential personal details and contact information. Additionally, you have to attach all the required documents required for the application.

Paying The Process Fee

After completing the formal application and document submission process, the applicant pays their loan service the processing fee. This payment is necessary to keep your loan account active.

Wait for a Loan Application Review

Next, your loan service will review your loan application to check your eligibility. For instance, they will identify how much loan they can offer you based on your profile. They will discuss it with you in detail to grant you a renovation loan. This should not take more than 1 to 2 working days. 

Assessment of the Provided Document

Many people apply for house loans every day. Therefore, you must be sincere with your loan service throughout the entire process.

Remember, the loan service disapproves of any fraudulent act or false documentation. Besides, illegal papers will result in worse problems.

Since it’s a huge amount of money, this is a way of building trust between you and your loan service.

Getting the Loan Approval

In this stage, your loan application can be accepted or get rejected. Your loan service is the final judge here. If any of your supporting documents are problematic, you might not get a loan. However, if everything is okay and satisfactory, they will sanction the loan.

Receiving An Offer Letter

After your loan application gets approved, your loan service will give you a formal offer letter. And it will include the following:

• Sanctioned loan amount
• Interest rate of the total loan
• Type of interest rate: Fixed or Variable
• Loan term (Tenuew/ Time you are supposed to take for the repayment)
• Medium of payment
• Loan terms and conditions
• Service policy

Legally Checking Your Property Documents

Once you get an offer letter from your loan service, they will check the renovation plan. In case, you still don’t have a detailed renovation plan, you can request your loan service to give you some time. After the checking, you submit the original documents of your property.

Checking The Site Physically

It’s a technical check or, rather, a double check. Loan services are really cautious about the money they will lend, and the property they are financing. So, they will send a property expert to the house you intend to renovate.

Finally—Signing The Agreement

After completing all the steps, you will need to sign a loan agreement. Generally, the loan service accepts cheques. Your cheque will have the initial payment you and your loan service agreed upon.

Final Remarks: Talk to Your Financial Service

You might have to collect more documents outside the given lists. Likewise, you might not have to collect some documents.

So, again the best way to find out which document you need is not to hesitate and talk to your target financial service.

Also, you can visit their website to check the documents needed for a house renovation loan. Now you have some solid direction to know about the required documents.