Home Loan -- Criteria for Taking Home Loan

After the first article written on Home Equity Loan

Next in line is Home Loan. By writing this article we attempt to let you know the procedure of taking Home Loan in India

-- Identifying the property

-- Submission of Loan Application Form with Processing Fees Cheque in name of Home Finance company or Bank

-- Submission documents related to Income, Banking, KYC documents (ID Proof, Address proff, DOB Proof, Signature proof -- Passport is the best document)

-- Verification and Validation been done by the lending institution in which a meeting is held with customer by the bank official (if loan amount is high -- generally above 20 Lacs) else a verification happens by the verification agency 

-- If property is pre-approved , then basis credentials bank decide to determine your eligibility basis the Income, market value of property and your current obligations

-- If property is not pre-approved, then bank initiates legal and technical check to determine whether the property is fund-able as a collateral

-- Post this, if criteria are met , bank issues a sanction letter to you defining the terms , with ROI and property papers are required for keeping it collateral against the bank

-- Once the sanction letter is passed, the customer is required to give the entire set of original documents pertaining to the property being purchased with the HFC as security for the loan amount sanctioned. 

-- Disbursement may be part disbursement (if its an under constructed property) or a full disbursement (if its a ready property)

-- EMI then starts -- if part disbursement done then moratorium starts . If full disbursement done then the complete EMI inlcusive of principal component starts