Home Loan Disbursement Guidance
When you leave for office every morning and stop at a traffic signal which is next to a flyover with families living under it.
It is that moment when you realize how important it is to have a home of your own. You may have hired rented apartment but now looking for a property and planning to buy one is far easier than it used to be a decade back.
Therefore in this article, we will discuss the home loan, procedures, eligibility criteria and more over the disbursement amount if you’re planning to buy a house financed by a bank.
What Is A Home Loan?
In simple language, a home loan is an amount that you borrow from any bank and promise to pay it back on time with interest. However, home loan in Delhi comes up with such great offers that you pay back while you are working. A couple of years back, buying a house was a mammoth task however, with home loans offered by banks now, it has come within the reach of a common man. For most of the middle-income group, to buy a house is a lifetime milestone, so with a home loan to achieve this milestone has become easier.
1. How To Apply for a Home Loan?
When you have finally decided to take a loan from a bank to buy your house, the first initial step is to fill the application form which asks for very basics information from a customer like:
You can apply for a loan against property due to short of funds also.
Documentation For Home Loans?
2. The Processing Fees
This is the non-refundable amount charged by your bank for commencing and maintenance for the whole process, charges usually are between 0.50% to 1% of the whole amount borrowed.
You have taken a loan of Rs.10 lakh so the total amount of processing fees would be around 2500-5000 if the processing percentage is 0.50%.
3. Personal Interaction
When you submit your application it goes through an inspection mostly it takes 24-48 hours before you know the results, on some occasions bank takes interest in meeting you personally just to know more about you. This helps them to understand the customer’s personal stability and credibility, like a married man with children and social securities fetch more points.
4. Field Audit and Inspection
It is quite obvious that if a bank is giving you a reasonably big amount it will double check the details physically especially if it’s an online loan against property. This may include a visit at your current address as well as the workplace.
5. Loan Approval
Based on your job experience, age, and annual income, credit score and paying capacity bank calculates the amount and hands over the offer letter to you with a few main details that include:
What Is An EMI?
An EMI is a fixed amount calculated by the bank and as per the amount you have to pay monthly for a given tenure.
What Is the Rate Of Interest?
In simple words, interest is the income or charge on the loan you have applied for normally the rate of interest for a home loan is between 8.5% to 9%.
6. Handover The Property Papers
After you have finalized the property you need to hand over the original documents of your house to the bank till you complete the loan.
7. Valuation Check
This is somewhat similar to the field inspection of your previous house and your office but the only difference here is that the valuation check is for the new property that you have purchased a bank representative will come and have a look.
8. Registration Process
After the valuation is done the next step is the registration process here the documents are signed and stamped with the help of the legal team and after this, the bank will sign the agreement that can later be transferred under your name once you pay back the loan.
9. Disbursement Amount
After all the formalities and the legal procedure of paperwork is done when the bank is completely satisfied with everything it disburses the amount that you have applied for, the point to be noted here is that you also have to pay a small token amount because the bank only finance up to 85-90% of the total cost.
Also read – Enhance your eligibility for Home Loan
Types Of Disbursements:-
If the home is under construction the bank releases the disbursement amount into installments you can ask for it whenever you need.
In this case, you get the full amount because you are moving into a new house and you the whole amount to pay.
I agree that after going through this article you might think that disbursement is a fairly long process but look at the positive side that you will get your dream home at the end of it all with the support and help of the bank.