Guide to the Home Loan Process in India
These days tens of millions of urban Indians are opting
for homes loans to buy their dream residences. But, most are not familiar
with the process of procuring a home loan. Consequently, many loans get
rejected and lot of customers find themselves in a mess after securing the loan
because he/she is unable to repay the debt.
It's vital for homebuyers to be properly versed with the
lender’s criteria for disbursing home loans. It is also vital that they
understand their economic obligations to the bank or financial institution on their
purchase to keep away from a showdown within the future. Read on to know more
about the home-loan procedure and your loan eligibility and repayment
liabilities.
Step 1: Applying for a home loan
The procedure for a home loan begins with a formal application to the lender. In addition, you are required to provide your personal details to scrutinize and to assess your loan eligibility. Most institutions will generally ask you for the following documents:
- Identity proof
- Address Proof
- Age proof
- Proof of educational/ professional qualifications
- Employment details
- Bank statements
- Proof of income
- Pan Card
- Property details (in case it is finalized)
Step 2: Applicant’s scrutiny and verification
After you've submitted your application and the
processing costs, the financial institution will examine your case and
determine the quantity you are eligible for. You'll be required to submit a few
minor papers, for a smooth processing of your loan
Step 3: Evaluation of repayment capacity
Verification of the borrower’s repayment ability is the most
important part of the home loan procedure. The financial institution might
also sanction or deny your application depending on your capability to repay
the loan (with interest) on time.
Step 4: Property verification
Prior to disbursing the loan, the bank/NBFC will verify
the property in question. You will be required to put up original copies of the
identity, no objection certificate and different docs the financial institution
may ask for.
An investigating officer takes a look at the assets to
check that the title is clear and that there is no dispute.
Step 5: Home loan disbursal
Once all of the above-referred to formalities have been
satisfactorily fulfilled, the registration procedure for the home loan
commences.
The legal documents have to be prepared in a layout on
stamp papers. You may be requested to proved post-dated cheques for the agreed
term and sign the home loan agreement.
Relying at the type of disbursal agreed upon (whether or
not lump-sum or in ranges), your lender will dispense with the amount. As a
home buyer, you ought to carefully apprehend the home loan system and the
following liabilities prior to making use for a home loan. It is a good concept
to test with a few banks and opt for the only which is inclined to provide home loan rate of
interest. Make an informed desire.
For any more queries or questions about how home loans work and to know more about how Clix Capital can help, feel free to write to us at hello@clix.capital or call us on 1800-200-9898
