For applying home loan , following list of documents require: 

01. Salaried person:
i.  Home loan Application Form along with one passport size photograph
ii.  Identity Proof (e.g. PAN Card, Driving License)
iii. Address Proof (e.g.Telephone Bill, Driving License)
iv. Income proof (Last month salary slip)
v.  Form No.-16 for previous year
VI. Income tax return for previous year
vii. Banks statement of previous six months


02. Self employed Businessmen/Professionals:
i.  Home loan Application Form along with one passport size photograph
ii.  Identity Proof (e.g. PAN Card, Driving License)
iii. Address Proof (e.g.Telephone Bill, Driving Licence)
iv. Certificate of educational/professional qualifications
v.  Proof of business establishment 
vi.  Income tax return for previous 3 years- Individual 
vii. Income tax return for previous 3 years- Business/Profession 
vii. Profit and Loss account and Balance sheet of previous 3years 
ix. In case of Business, some brief detail about business. 
x.  Banks statement of previous six months

Along with above list of documents for both categories of applicant, cheque of processing fees should be provided.

Kindly note that above mention list of documents are minimum requirement for applying home loan. Requirement of additional documents will vary from bank to bank.

On May 3rd, 2011 Reserve Bank of India increased repo rate (rate at which RBI provide short term borrowing to banks) and reverse repo rate (rate at which bank invest fund for short term purpose with RBI) by 50 basis points (1 basis point = 0.01%). And also increase saving bank interest rate from 3.5% to 4% p.a.

Hikes in the rates will affect cost of borrowing of home loan and auto loan.

Generally, auto loans are having fixed interest rate hence it will not affect to existing customer but for fresh customer, auto loan will be costlier.

In case of home loan, floating rate will change due change in rate by RBI.
Home loan will be costlier by 0.50%.

RBI has taken this step to control inflation.

Good news is that RBI hiked the saving interest rate from 3.5 % to 4% which will increase interest revenue who are parking more fund in saving accounts.