Understand the Home Loan Sanction Process

To avoid unnecessary discrepancies in your loan application process, it is wise to fully understand the steps involved, before you try and get a loan sanctioned. This post discusses the entire loan sanction process, in detail.

Availing a Home Loan in the past used to be a typically lengthy process. But thanks to the ever-evolving digital technology, you can now apply for a Home Loan from the comfort of your existing home. Top lenders in the country have online Home Loan application platforms, developed to make the process optimised and convenient.

The loan application and disbursal process, as already established, is better navigated once you’re clear about how the lenders sanction Home Loans. Take a look at all the steps involved in getting a housing loan sanctioned online.

1. Apply for a Home Loan Online

Visit the online portal of the selected lender to apply for a new Home Loan or a Home Loan balance transfer. Select the appropriate option and fill out the online application form. The form will require you to furnish personal information and additional details about your employment, income, loan amount, and tenure.

Cross-check all your entered details before hitting the ‘Submit’ button as your Home Loan eligibility will be determined basis the information you’ve provided. An OTP will be generated and sent to your registered mobile number. Enter the OTP to proceed with the next step.

2. Check the Loan Offer

The online platform will automatically determine your Home Loan eligibility and provide a custom offer. You can check the maximum amount of loan that you can avail and a detailed breakdown. Monthly EMIs based on the chosen loan amount, tenure, and interest rate will also be provided.

This step of the applicationprocess is where applicants also have the option to add a co-applicant, to improve their eligibility. A separate form needs to be filled out for adding a co-applicant.

3. Pay the Login Fee and Receive a Provisional Approval

A provisional approval or a pre-approved Home Loan allows an applicant to get a Home Loan sanctioned even before they finalise the property. When the applicant knows the loan amount they are eligible for, it makes house hunting far easier. To receive a provisional approval from the lender, the applicant is required to pay a login fee online.

The login fee is a combination of the processing fee, the CIBIL charges, and the CERSAI charges that every borrower has to pay. The provisional approval is delivered through an e-mail, only after the login fee is paid online.

4. Upload the Documents

The next step of the sanction process is where you submit your Home Loan documents. Applicants must upload their identity proof, residence proof, income documents, bank statements, signature proof, etc., to apply for the loan. Some lenders also offer a doorstep pick-up service, if the applicant wants to submit physical documents. Property related documents should also be uploaded online, once you’ve finalised a property.

5. Get Home Loan Sanction Letter

Once you have uploaded all the required documents, the lender will initiate the approval process. If everything is in order, the loan will be approved, and you will get your Home Loan Sanction Letter. This document contains some key information, as follows:

• Loan Amount

• Interest Rate

• Tenure of Loan

• EMI Details

• Terms and Conditions

• Charges.

6. Sign on the Dotted Line

If you are okay with all the terms, you’ll need to sign the document and send it back to the lender. Once you have signed all relevant documents, the lender may ask you for some crucial property-related documents, such as the title deed, No Objection Certificate (NOC), Encumbrance Certificate, etc. Once this process is over, the bank will verify and ensure everything is in order.

7. Disbursal of the Loan Amount

Finally, the lender will disburse the loan amount and write a cheque/DD in favour of the seller, on your behalf. The disbursal may be made in parts or as a lump-sum amount, as per mutually agreed terms.

Experience New-Age Home Loan Application with a Digital Loan Sanction

Gone are the days when Home Loan applications used to take forever and required multiple visits to the lender. With an online application, you can now apply for a Home Loan and get it sanctioned without ever having to visit the lender.

Borrowers can always contact the support team of the loan provider to get all the assistance they need. Detailed information about the online Home Loan application process can also be found on the official portal of the lender. Ensure that you only select a reputed lender known for offering Home Loans at competitive rates. Good luck with your home search and with achieving your dream of being a homeowner, at the earliest.

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