Getting a Home Loan In India

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Getting a Home Loan In India
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Decided on your dream home and now have to raise
the funds? Fortunately bank loans are not as
difficult to get as they used to be. Its still a
slightly long process, but then its always
better to know that everything has been checked
thoroughly rather than keep having to run around
every three or four months. Here are the steps to
go through
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Application

• You need to fill up an application form which
  will ask for your basic information such as
  address, employment details, income, education
  and so on. The form will also ask for the
  property details like estimated costs etc. They
  will also ask you to submit verified photocopies
  of certain documents such as
• Income proof
• Age proof
• Identity proof
• Address proof
• Employment details
• Proof of educational qualifications
• Details about the property if finalized
• Bank statements
• These are for security-both yours and the banks.

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Processing fees for home loans in India

• An important thing to note about home loans is
  the processing fee. Banks charge a processing fee
  for every home loan application. This fees is non
  refundable. The processing fees varies from bank
  to bank and is generally between 0.25 to 0.50
  of the loan amount. This fees is used by the bank
  to start and maintain the home loan process
  including completing the various formalities
  during the entire period.

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Evaluation and Verification

• Once all your paperwork is in, it takes a few
  days for the bank back after going through your
  application and deciding your eligibility. If you
  pass this stage, a field verification begins for
  which they send representatives to talk your
  family and neighbours as well as your colleagues
  to verify that the information you have provided
  is correct. The references provided in the
  application are cross checked and verified

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Repayment Verification

• The bank now verifies your repayment capacity.
  After reviewing your credit records and bank
  account details, if convinced that you will be
  able to make payments every month, the bank
  sanctions your loans. The sanction can be
  conditional or unconditional. If the sanction is
  conditional, youll have to fulfill the
  conditions imposed before the loan is disbursed.
  If they feel that you will not be able to pay
  back the loan, they will not sanction your loan.

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Offer letter for home loan

• The bank then prepares an offer letter which
  contains the following detail
• The amount of home loan sanctioned
• The interest rate applicable on your home loan
• Whether the interest rate is fixed or floating
• Your home loan tenure
• The mode of repayment of the home loan
• If any special scheme applies to the home loan,
  its details
• The terms and conditions associated with the home
  loan
• If you find the offer attractive and agree with
  all the facts mentioned in the offer letter, you
  will have to provide an acceptance copy to the
  bank. This is generally a duplicate of the offer
  letter signed by you, provided to the bank for
  its records. If the bank charges any
  Administrative fee, it will have to be submitted
  at this stage.

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Property Verification

• The bank sends representatives to verify the
  property you are looking to buy. For this, you
  have to submit the original property documents.
  These include the title deeds, no-objection
  certificates and other documents. The bank
  conducts a legal check so as to verify that the
  property has a clear title and the home loan is
  being disbursed to the right person and for the
  right reasons. Banks dont lend for disputed
  properties and for titles where ownership cannot
  be easily enforced.
• Along with the legal check, banks also sends
  experts to the location of your property to
  conduct a technical valuation. If the property is
  under construction, the banks verify the stage of
  construction, quality of construction, progress
  of construction, locality etc. and evaluate the
  property on established parameters. In case where
  the property is ready or is being resold the bank
  verifies the ownership, maintenance, age of
  property, quality of construction, locality and
  required legal clearances. The banks have
  qualified valuators, which assess the value of
  property on various parameters and decide on the
  amount of loan
• The sole purpose of all this is to ensure that
  the property has a clear title, is technically
  sound and meets the valuation standards of the
  bank.

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Releasing the money

• . Once the formalities are completed and the bank
  is satisfied with the legal, technical and
  financial valuation of the property, the
  registration process for the home loan begins.
  The legal documents are to be prepared on stamp
  papers of required denominations in a format
  approved by the banks lawyer. The home loan
  agreement is then signed and you need to submit
  the post dated cheques for the agreed term. After
  the home loan agreement the loan disbursal
  process begins. Depending on the home loan
  purpose, and the agreed type of disbursal (lump
  sum or in stages), banks disburse the home loan
  amount

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Contact UsMIDTOWN STRUCTURESBeside Adarsh Palm
Meadows,Opp.Skylark GreensRamagondanahalli
Borewell Road,Whitefield, Bangalore, KA
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99000 57 620USA Contact 1 913 738
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