2. STEP 1 - Submit an Application form along with
relevant documents
•
Application Form
•
Processing Fees
Trainings by Vidya Bhagwat
3. STEP 2 - Verification of the property and
supporting documents
Documents For borrower & guarantor – self attested copies
• Identity Proof (Passport, Driving Licence, Voter I Card. Pan
Card, Employer’s I Card)
• Address Proof of all Borrower/s and Guarantor. (Electricity Bill,
Phone Bill Etc.)
• Proof of date of birth of Borrower/s and Guarantor
• Education qualification proof of Borrower/s
• Pan No of all Borrower/s and Guarantor
• Income tax return/ Form 16 for the last three year for all
Borrower/s and Guarantor (Most Important Document, used
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to calculating your loan eligibility)
4. STEP 2 - Verification of the property and
supporting documents
• Latest salary slip for salary class / annual package letter /
current ctc letter (Most Important Document, used to
calculating your loan eligibility)
• Bank statement for last 6/12 months where the salary is
credited for both Borrowers
• Marriage certificate. (This will increase you loan eligibility,
Very important)
• Bank statement of existing loan accounts(Car loan, personal
loan etc), if any, of borrowers and Guarantor since the
beginning.
• Personal assets and liabilities statement ( Include Xerox copy
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of Insurance Policy, Demat Statement, Mutual Fund
statements, Statement of other accounts etc)
5. STEP 2 - Verification of the property and
supporting documents
Property Papers: (All in Original for Disbursement of loan)
• Allotment letter from Builder
• Agreement to sell / builder – buyer(BB) agreement
• Payment receipts of payments made to the builder
• Tri Party Agreement (TPA) duly signed by Borrower/s, Builder
and Bank. (keep a xerox copy of TriBhagwatAgreement with you
Trainings by Vidya Party
as well)
6. STEP 2 - Verification of the property and
supporting documents
Documents for NRI
• For availing home loans, NRIs have to full fill certain
conditions according to provisions of the Income Tax Act.
• 3 Months salary slip.
• 6 Months Bank Statement in which salary is credited.
• Identity Proof.
• Indian Pan Card.
• Passport.
• Visa Letter.
• Stayed in India for more than Vidya Bhagwat more within an
Trainings by 182 days or
assessment year or should have stayed in India for at least a
total of one year or more
7. STEP 2 - Verification of the property and
supporting documents
• Indian Residential proof and foreign residential proof.
• POA (Power of Attorney) on the name of authorised
signatory.
• Visa Letter.
• Stayed in India for more than 182 days or more within an
assessment year or should have stayed in India for at least a
total of one year or more
• Indian Residential proof and foreign residential proof.
• POA (Power of Attorney) on the name of authorised
signatory.
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8. STEP 2 - Verification of the property and
supporting documents
For Security: (All in Original)
• Mortgage of property for which finance is being given.
• In case of purchase of house/ flat from Builder where
mortgage cannot be created immediately (e.g. Under
Constructed Property), a tripartite agreement shall be
executed amongst the Builder, borrower and the Bank.
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9. STEP 3 - Sanction of the loan (usually on the 7th
working days after Step 1)
Loan sanctioning/Loan sanctioning letter:
• After the above few steps the bank will give you the loan
sanctioning letter. It has the details of the amount of loan
sanctioned by bank.
• Final loan amount sanctioned and your loan eligibility are two
different things. Once you know what you are eligible to get,
you can decide on the loan amount.
• Just because you are eligible for a huge sum does not mean
you should borrow heavily. The loan sanctioning letter is an
important document, keepsby Vidya Bhagwat be useful if there
Trainings it safe, and may
is any dispute.
10. STEP 3 - Sanction of the loan (usually on the 7th
working days after Step 1)
Check the following in the letter:
• Loan sanctioned amount
• Interest rates (Fixed or floating and related to which
reference rate e.g. Base Rate)
• Tenure of Loan
• EMI Amount, mode of payment (Cheque or ECS)
• Conditions/Charges on prepayment of loan
• Special scheme if any available.
• Validity of the Loan sanctioning letter (Generally 6 months)
• Any other terms and conditions.Bhagwat
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11. STEP 4 - Submission of the original Property
documents and signing the loan Agreement (usually
on the 8-10th working days after Step 1)
• You will be required to leave the title deed of the property
with the company as a security for the loan.
• You will be required to go to the company’s office to execute
the legal loan papers.
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12. STEP 5 - Disbursal of the Loan Cheque (usually
on the 10 –15 working days after Step 1)
• You can draw the loan in parts depending on the stage of
construction of the building.
• Until such time that the entire sanctioned amount is NOT
drawn, you will pay a simple interest on the Actual Amount
drawn (without any principal repayments).
• The EMI payments will commence only after the entire
Sanctioned Loan Amount is drawn.
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13. Loan disbursement/Property Assessment
Legal Check
• Every bank conducts a legal check on your documents to
validate their authenticity. Hence, sometimes it helps to buy
property from a reputed developer since they know the
process inside out, and keep all the documents upfront.
• •Home loan is also the cheapest way to get the property
assessed by an individual as Property documentation in India
is still non-transparent.
• •Thus home loan assures that the property you are buying
has all the legal titles clear, and your investment is safe.
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14. Loan disbursement/Property Assessment
Technical check
• Banks take utmost care in their plan to finance the property. They
send an expert to visit the premises you intend to purchase.
• In case of under construction property
• • Stage of construction is the same as that mentioned in the
demand given to you by the builder.
• • Quality of construction and satisfactory progress of work.
• • Layout of flats and property is within permissions granted by the
governing authority.
• • The builder has the requisite certificates to start construction at
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the site.
• • Valuation of the property in relation to other deals in the
surrounding areas.
15. In case of ready/resale construction
• External / internal maintenance of the property.
• The age of the building.
• Quality of construction.
• Surrounding area (development).
• Whether the builder has received the requisite certificates for
handing over possession of the flat.
• There is no existing lien or mortgage on the property.
• Valuation of the property in relation to other deals in the
surrounding areas.
• These inspections are carried out to protect consumer
interests in terms of Trainings by Vidyaquality, adherence to local
construction Bhagwat
laws, approved building plans, etc.
• Signing the home loan agreement
17. Activity
• Tell all the participants of his session to prepare a checklist of
all the documents required for an NRI
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18. Assignments
• Define any two important steps that are involved in the
sanctioning processes of a home loan.
• What are the documents required at the time of application
for a home loan?
• List out the various aspects involved in appraisal of home
loans.
• What are the fees and charges payable by the borrower on a
home loan and when?
Trainings by Vidya Bhagwat
