Home Loan – Let us explain how this will go about and what the
steps are for the same:
The first step involves the process of finding your property, followed by the verification
of property documents. Post examination and checking eligibility criteria, one can
simultaneously start searching for the lender who can offer the BEST Home Loan Deal.
Know the Home Loan Eligibility: Banks offer loan amount on the
basis of your income and property value. EMI, calculated on the basis of income
and property value, will be up to 50-60% of your monthly pay.
Select the Best Home Loan after evaluation: While home loan interest
rates comparison is the primary feature in the home loan selection, one shouldn’t
neglect other fees & charges like application fees, processing fees, legal charges.
To check interest rates & other charges incurred by various banks, Onlyloans.in has
brought in a Home Loan Comparison Chart of various banks. Banks offer Fixed and
Floating rates on Home loans.
Majority customers prefer floating rates
Applying for the Loan: After selecting your lender, you will have
to fill the application form wherein the lender requires complete information about
your financial assets & liabilities; other personal & professional details together
with the property details & its costs.
Documentation & Verification Process: You are required to submit
the necessary documents to the bank which will be verified together with the application
Credit & default check: . The amount of loan to be provided is
confirmed by the Bank after checking the checks out the borrower’s loan eligibility
(by calculating the repayment capacity). The repayment capacity is based on the
income, salary, age, experience & nature of business etc. of the borrower. CIBIL
score, giving the credit history of the borrower, plays a critical role in deciding
& approving the loan application. Low credit score implies that the bank upfront
rejects your application on the basis of earlier credit defaults; while a high credit
score gives a green signal to your application.
Bank sanctions Loan & Offer letter to the borrower: After the credit
appraisal of the borrower, bank decides the final amount & sanctions the loan. Further,
the bank sends an offer letter to the borrower which constitutes the details like
rate of interest, loan tenure & repayment options etc.
Acceptance Copy to the Bank: The borrower needs to send an acceptance
copy to the bank after agreeing with the terms & conditions in the offer letter.
Bank checks the legal documents: The bank, further requests for
the legal documents of property from the borrower to verify its authenticity as
well as to keep the same as a security for the loan amount given.
The next step involves the valuation of the property by the bank that determines
the loan amount to be sanctioned by the bank.
Signing of agreement & the loan disbursal: The borrower signs the
loan agreement & the bank disburses the loan amount.
Documents required for a Home Loan
Generally, the documents required to processing your loan application are almost
similar across all the banks; however the same may differ with various banks depending
upon specific requirements. Following documents are required by financial institutions
to process the loan application:
- Age Proof
- Address Proof
- Income Proof of the applicant & co-applicant
- Last 6 months bank A/C statement
- Passport size photograph of the applicant & co-applicant