Yes, Form 16 is required for obtaining a home loan. It is a tax deduction certificate issued by an employer that shows the amount of tax deducted from the employee pay and deposited with the government. When determining a borrower eligibility for a home loan, lenders use Form 16 as proof of income. In addition to Form 16, lenders may request other income-related documents such as pay stubs, bank statements, and tax returns to assess the borrower repayment capacity.
