Article

Procedure: How to Apply for Home Loan
February 06 , 2013

  1. You can get loans from Banks and Non-Banking Financial Institutions (NBFCs), but Banks are always cheaper
  2. You can get about 80% of the value of the property as loan. You need to put up the rest in downpayment
  3. The tenure can be between 10 and 25 years, depending on how much EMI you can pay

  1. Many private banks sell loans through Direct Sales Agents (DSAs). These people help you fill the forms, collect the documents and ensure the process is completed. Public sector Banks typically do not go through DSAs
  2. Once you contact the Bank or the DSA, they typically take you through the process thereafter
  3. The process can take about 2-4 weeks, and consist of two parts: one is to sanction the loan for your repayment capacity. The second is to scrutinize the property and make sure titles are clear and they are comfortable lending against it. You can do one independent of the other (i.e. you can get a pre-sanction for the loan, even without identifying the property first. This can save you time later)

  1. Fixed versus floating is a common debate
  2. Tenure will depend on how much EMI you can pay
  3. Most banks have a small processing fee that can range from Rs. 5,000 to Rs. 15,000

  1. You will need to show adequate proof of your ability to repay, offer letter, tax returns and so on. Each Bank could have slightly different set of documentation requirements. Some may also contact your employers to confirm your employment in that organisation. But generally you'd be asked to furnish standard documents for identity proof (voter id, driving license, PAN card, passport, etc), address proof (electricity bill, telephone bill, property tax receipt, passport, voter id, etc) and income proof (3 months' salary slip, 6 months' bank statement, personal liabilities and assets statement)
  2. Once all documentation is complete, the loan will be approved, and amounts disbursed to the builder directly. In case of under-construction property, the Bank will disburse the monies in stages to the builder

Fintotal Knowledge the best place to learn more on personal finance.

The language is simplified and written specially for non finance background individuals.


Explore more in a easy manner.

Table of Contents

Table of Contents

  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed

Get the all financial products under one roof only at

you will NEVER GO WRONG with us!

Unbiased . Best Deals . Appropriate Products . No Mis-selling