Home Loan Sanctioning And Disbursement: a Quick Guide

  • The number of people availing Home Loans  to fund their home purchase is increasing and so is the number of people looking for some information regarding it.

    The Home Loan is a great concept that has been super-successful in India as people fulfil their housing Loan dreams with the help of housing finance.

    Banks, non-banking finance companies (NBFCs), home finance companies and more are offering up to Rs.3.5 crore as the Home Loan at a lower interest rate and extended tenor. People are interested in knowing many concepts about the Home Loan before and after availing it.

    One of the many concerns of prospective Home Loan borrowers is Home Loan sanctioning and disbursement. This post will help you with some meaningful information regarding the same.   

    If you are a first-time home buyer using the Home Loan facility, you need to know that Home Loan sanctioning process could be tricky to know.

    An Overview of the Home Loan Sanctioning and Disbursement Checklist

    Here are some vital factors to keep in mind while navigating through the Home Loan sanctioning and disbursement process:

    Before anything else, the first thing that lenders will see if your documents are in order. You need to provide them with some relevant documents such as address and identity proofs, bank statements, PAN card copies and your housing purchase agreement.

    • Lenders Will Check Your Details

      The next step that lenders will do is running a thorough checking of your credentials or background to determine if you have provided them with complete information. Thus, it becomes the duty of the borrowers with only the correct details.

    • Be Ready for the One-On-One Interview

      Your lender will then schedule a personal meeting with you to get a detailed understanding of your purpose of applying for a Housing Loan. They will also enquire about your income, age, job consistency, monthly expenses, and more before approving the loan request. Some lenders may not follow this practice and the online Home Loan application form which will contain all relevant information will be enough.
      Once you are through to the all the above-discussed aspects or processes, you can then move on to the next part which is the Home Loan disbursement process.

     

    • Paperwork Will Begin

      Your lenders will start giving you some documents which you need to sign and submit. You will also need to submit some property documents as well.

    • The Down Payment

      Another thing that you need to know is that you will have to pay at least 20% of the cost of your loan as the down payment to your lender. The down payment may vary from lenders to lenders and as per your financial profile.

    • Get Ready For The Legal Checks

      The prospective lender will also demand the legal assessment of the property documents that you have submitted such as the Title Deed and the No Objection Certificate (NOC).

    • When Will Your Home Loan Be Sanctioned?
      It is one of the most vital questions that hover the minds of the Home Loan borrowers. It depends on lenders to lenders when will the Home Loan amount be credited into your bank account. Generally, modern-day lenders take around 3-4 days to disburse the Home Loan money into your account.

     

    Now that you are aware of the Home Loan sanctioning and disbursement process, you can apply for an online Home Loan.

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