HOME LOAN PROCESS : APPLICATION TO DISBURSAL.

Home Loan Sanction and Disbursal Process :


Your Home Loan Application passes through different phases of process before the Loan cheque  is made. In this article we will understand about all those steps in detail. The factors which carry the utmost importance are :

• Income
• Property.

Income: The borrower should have repayment capacity to return the Loan. The quantum of Loan depends on the income of the Borrower. In Housing Loan we can club the income of Maximum Three Applicants.

Property : The Loan is also calculated on the basis of the Property Value and the maximum Loan Amount which can be advanced is  80% of the property value if the Loan amount is above 20 Lacs and for loan less then 20 Lacs , the ratio stands at 90%. A borrower can apply for a Loan without finalizing the property, but the loan will only be disbursed once the property is  finalized  and all due diligence have been done. Income eligibility or Property eligibility the lessor of the two is given as a Loan.

A Loan application is made to the Bank/HFC along with all  income documents and personal documents.We will for our covienence divide the process into two parts

: Pre - Sanction       and                Post Sanction.

Pre- Sanction:  The process is giving a credit sanction without property documents is call pre - sanction or Pre Approval. The Home Loan file along with all Income and Personal Documents with Processing Fee cheque is submitted to the  Bank. The Bank upon receiving the application carryout's Home and Office   verification of all  the Borrowers.The credit  also initiates  CIBIL Check and other  Internal checks . If all these checks are okay then the credit proceeds for the sanction and a Sanction letter is issued. In case if there is  any discrepancy on these checks the customer is informed and clarification is sought. If the CIBIL score is low or verification is negative , the application can be rejected right there and no loan is sanctioned.

Post Sanction: Once the Sanction letter  is issued the borrower  finalises the property and gives the photocopy of Property to the Bank/HFC for due- diligence . A proper due diligence is done by the empanelled  Lawyer and Valuer. Based on the  valuation report the  final  Loan amount is decided. The borrower is informed of the same and upon borrowers agreement a Loan Agreement is signed. All the borrower has to sign the Loan Agreement and the Disbursal cheque is   made. The cheque  is handed over to the Seller on the registration day. The Bank collects all the original documents from the seller at the time of registration . The new  registration deed is also collected by the bank. After collecting all these original documents they are kept in the  safe custody of the Bank  and further copy of sanction letter along with amortization chart is handed over to the customer.

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Tags , Home Loan, Construction Loan, Loan Against Property, Home Loan in Delhi NCR.